25.05.201809:32 Forex Analysis & Reviews: The ECB will not hurry

The publication of yesterday's minutes of the ECB meeting held on April 25-26 did not lead to a sharp purchase of the European currency, but only forced investors to pay closer attention to the future statements of ECB President Mario Draghi and the decisions of the Central Bank.

The slowdown in the euro zone's economic growth in the first quarter of this year crosses out all the plans of the European regulator to quickly curtail the stimulus program through bond redemption.

In addition, the Protocols also contained concerns about the protectionist policies that the White House is pursuing against a number of countries, including the countries of the European Union.

ECB leaders warned at the April meeting that trade conflicts could damage economic growth in the euro area, as they increase uncertainty and reduce confidence. The report also indicates that trade conflicts can also destabilize financial markets.

Such statements hardly coincide with the plans of the ECB to start winding down the program, under which the regulator buys assets on a monthly basis of 30 billion euros, which is likely to affect the timing of an increase in interest rates in the euro area.

Data on the labor market in the US yesterday had a slight pressure on the US dollar, but it did not lead to a significant change in the forces on the market. The trend remains on the side of buyers of the US dollar.

According to the report of the US Department of Labor, the number of initial applications for unemployment benefits for the week from 12 to 19 May increased by 11,000 and amounted to 234,000. Economists had expected the number of applications last week to be 220,000. The moving average of applications increased by 6250 and amounted to 219,750.

Data on home sales also had a negative impact on the US dollar.

According to the report of the National Association of Realtors, sales in the secondary housing market in April this year decreased by 2.5% and amounted to 5.46 million homes per year. Economists predicted that sales in April will drop to 5.55 million homes a year. In comparison with the same period of the previous year, sales in April fell by 1.4%.

Yesterday's statements by US President Donald Trump, who canceled the summit with North Korea, scheduled for June 12, led to a sharp purchase of assets-shelters, which include the Swiss franc, the Japanese yen, and gold.

As for the technical picture of the EUR / USD pair, the breakthrough of the intermediate support of 1.1690 will lead to a new wave of large sales of risky assets, with a yield to the lows of 1.1660 and 1.1630.