POLITICAL TENSIONS IN THE US PUT PRESSURE ON THE USD
The EURUSD price increased after news of Donald Trump’s connections with Russia, a factor which may lead to the growth of uncertainty in the US and may worsen the political situation in the country. Pressure on the greenback also had weaker statistics on JOLTS job openings that in May were only 5.67 million against 5.98 million forecasted. Investors are waiting for today’s speech by Janet Yellen at 14:00 GMT in the Congress with semi-annual report of the Fed. Hints about tightening of monetary policy in the US will likely lead to a decline of EUR/USD. We should also pay attention to the Beige Book release in America at 18:00 GMT and the news on industrial production in the Eurozone in May at 09:00 GMT.
As a result of strong upward impulse yesterday, the quotes have broken through the resistance at 1.1450 and approached the psychologically important mark at 1.1500, the overcoming of which will be the basis for continued growth up to 1.1620. Within the descending correction we may see the price retreat to 1.1450 and 1.1380. Volatility is likely to remain high during today’s trading session and besides the news concerning monetary policy, in focus will remain the political situation in the US.