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All the data that came out earlier this week did not support the European currency, which continued to decline against the US dollar. Many traders are waiting for a more open policy from the Federal Reserve System, which will be discussed in today's minutes of the January meeting.
If the Fed report hints of an early tightening of monetary policy and gives clues about the expected rate increase in the spring of this year, then the demand for the US dollar could significantly increase. However, it is worth noting that it is unlikely that the US currency will have a chance for a larger recovery in the medium term.
The main reason for the demand for risky assets such as the euro and pound, will be the expectations regarding the acceleration of economic growth outside the US and fears about Washington's fiscal policy.
According to data released at the end of the North American session on Tuesday, eurozone consumers are pessimistic about their prospects in February.
According to the report of the European Commission, the preliminary index of consumer confidence in the eurozone for the month of February this year rose by only 0.1 against 1.4 in January. Economists had expected the index to slow down to 1.0. Despite this, many experts expect the eurozone economy to continue growing in 2018 by about 2.3%.
As for the technical picture of the EURUSD pair, in case of a decline in the euro after the publication of the Fed's protocols, opening long positions is best after the major support levels of 1.2240 and 1.2200 have been updated.
The Australian dollar ignored a good report on wages in Australia and continued to decline against the US dollar.
According to the Australian Bureau of Statistics, the growth of wages in Australia in the fourth quarter of 2017 was 0.6% compared with the third quarter and 2.1% compared with the same period last year. Economists predicted a quarterly growth in wages by 0.5%.
One should pay attention to the fact that more recently, the RBA has made it clear that without a larger increase in wages, which can spur inflation, there is no question of raising interest rates.
The report also noted that wage growth was observed in the public sector while wage growth in the private sector was hardly accelerated.
In general, as noted in the RBA, the high rate of the Australian dollar also affects the rate of growth of inflation and the economy of Australia.
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