Despite the poor consumer confidence statistics in the euro area the main pair was traded with a slight increase in Yellen’s and Draghi’s speeches anticipation in Jackson Hole.
The investors are most interested in whether the Fed reduces QE3 program further or leaves it at this current minimum while working in the national economy support question - in fact it was discussed in the Fed minutes published before.
We advise to short with the first target - 1.3150. When the pair consolidates below the first target, we can open a deal to the level of 1.2935.
The UK published retail sales showed a dynamics growth in July by 0.1% m/m and +2.6% y/y, which indicated a slowdown, as in June was 0.2% m/m and 3.4% y/y, as well as lower than forecast, waited gain of 0.5% m/m and 3.1% y/y. Now any less encouraging the British economy data is seen as a weakening rates increase probability.
We advise to short with the first target - 1.6555. When the pair consolidates below the first target, we can open deals to the level of 1.6452.
The yen remained under pressure against the dollar on the background of a stock indices new multi-year highs due to the geopolitical tensions easing and the evidence that the major central banks will not rush to raise interest rates. The rates low levels are one of the main factors supporting the stock market.
The fact that the Japan's GDP forecast for 2014 fiscal year was downgraded became the additional pressure on the yen was.
We advise to long with the first target - 104.34. When the pair consolidates above the first target, we can start a deal to the level of 105.60.