18.10.201715:54 Forex Analysis & Reviews: Sellers of the European currency took a pause

The European currency managed to keep the lows of yesterday and even slightly recovered its position at the beginning of the U.S. session on Wednesday, October 18.

Pressure on the euro in the first half of the day reflected the commentaries from the president of the European Central Bank, Mario Draghi. During his speech at the headquarters of the Central Bank, Draghi denied allegations that monetary policy impedes the necessary reforms in the euro area countries. In his opinion, lower rates usually contribute to reforms because these create more favorable macroeconomic conditions.

Such statements surprised many economists who expect that the ECB president to announce by the end of October this year, the curtailment of the quantitative easing program next year.

Speeches of a number of representatives of the Fed slightly helped the U.S. dollar, as they were more informative.

Today, Fed representative Robert Kaplan said that the growth of the economy is likely to be just under 2.5%. In the current state, the level of full employment is close to being achieved. Kaplan also warned that a tax-oriented tax reform could damage the economy.

The Federal Reserve spokesman, William Dudley, also expressed his concern about the prospect of economic growth due to uncertainty in Washington's policy. In a particular case, the discussion also dealt with the tax reform. According to Dudley, the situation in the economy is currently favorable, but only a less complex taxation system will be beneficial.

As for the technical picture of the EUR/USD pair, the bulls managed to keep the support level at 1.1735-30. As a result, a rebound was formed upwards. However, it is possible to consider more serious purchases only after consolidating at the resistance level of 1.1780, where the growth of the trading instrument may lead to the renewal of the area 1.1815.

The British pound reacted today after the decline of a weak data on wage growth in the U.K.

According to the report, there was a decline in the standard of living that began to manifest itself after the referendum on the withdrawal of the U.K. from the European Union. Data from the National Bureau of Statistics showed that between the period of June to August this year, the growth in the average annual salary declined even though the unemployment remained at a minimum level of 4.3%. Salaries increased by 2.1% from June to August compared to 2.2% from May to July, which is not a very good signal for the economy of the country.

Pressure on the pound continues to persist, which could bring the trading instrument back to the monthly lows of 1.3080 and 1.3030.