Yesterday’s trading ended flat for the EUR/USD pair but volatility was high. Traders moved from selling the EUR before European session started, to buying the EUR before U.S. trading session started and eventually the pair finished near the day opening rate. The pair ranged $1.2965 to $1.3040.
Any move below 1.2965, would signal a correction while any move above 1.3040 would signal another rally. Other currencies such as the EUR/JPY and USD/JPY are beginning to form correction signals.
It is still early to decide if yesterday was a beginning of a correction or a single day of profit taking. Looking for today, lack of important news events is expected to keep trading calm as analysts’ learn yesterday’s data, but tomorrow more news from the U.S. should put more light on the economy.
Volatility should rise toward next week which is the first week of August and hold plenty of macro data and important news events. Traders should start to plan trades and positions for next week as it is going have a lot of impact on currencies and we are likely to wildness large movements in prices.
Here is a roundup of the day’s main economic indicators:
• 12:30 GMT, U.S. Unemployment Claims – This report measures the number of individuals who filed for unemployment insurance for the first time during the past week. If the end result will be lower than the expected 457,000 – the Dollar might rise against the majors.