Yesterday's news on the eurozone and low market volatility did not lead to serious changes due to the celebration of Thanksgiving Day in the USA. Although, they put some pressure on risky assets. In general, the picture in EURUSD remains the same.
The publication of the minutes in October meeting of the European Central Bank led to a slight pressure on the euro, which was supported by a weak report on consumer confidence in the eurozone.
As the data showed, the European Central Bank may lower its growth forecasts for the eurozone economy in the next meeting, which may significantly affect the regulator's plans to tighten monetary policy next year.Let me remind you that at the end of this year, as early as next month, the Central Bank will curtail its program of buying bonds of 2.6 trillion euros, known as quantitative easing. This will be the first step towards the start of a series of interest rate increases in the eurozone. However, the recent problems with Italy and the slowdown in economic growth, along with inflation remains within the limits of permissible, can all lead to a revision of more aggressive steps in policy changes by the European Central Bank.
Despite the likelihood of a revision of the forecast, the protocols say that the ECB leaders still agreed that the eurozone economy continues to grow, but the process of folding QE will depend on the incoming data.
A report was published yesterday afternoon, indicating that European consumers were less optimistic about their prospects. This is connected with the same signs of the recent slowdown in the eurozone economy.
According to the European Commission, the indicator of consumer confidence fell to -3.9 points in November of this year against -2.7 points in October. Economists had expected the index to drop to -3.0 points.
Despite this, as noted in the report, the indicator remains above its long-term average. This suggests that households are optimistic about their future.
As for the technical picture of the EUR/USD pair, it remained unchanged.
Upward potential is limited by intermediate resistance in the area of 1.1425 and a breakthrough of which will lead to the return of the trading instrument to the maximum of this week in the area of 1.1470. In the case of a break of support at 1.1380, the pressure on risky assets will increase, which will lead EUR/USD pair to the minimum of the week and update them in the 1.1340 and 1.1300 areas.
The material has been provided by InstaForex Company - www.instaforex.com