eurusd is consolidating before ECB rate decision

There hasn’t been much movement in eur/usd pair this week. It is neither rising, nor falling. No higher highs and no lower lows. It means market is stuck and waiting for something. No wonder for what. ECB rate decision is expected to be released at 11:45 GMT. No surprise is expected. However, any slight hawkish or dovish comment can send the pair up to previous high of 1.1697 (24^th of August) or down to the low of 1.1151 (28^th of August low) and possibly much lower. Either scenario is possible, but downside is probably favored. Why?

ECB is not planning to raise interest rates any time soon. FED is contemplating rate hike and this puts Euro in a vulnerable position. It is probable that current run to 1.1700 level was simply profit taking on short positions in Euro and a healthy counter trend move that happens in any trending market. However, FED seems to be too slow in their decisions and this can affect short term fall of US dollar. So, any sign of bearish or bullish ECB comments will affect exchange rate of the pair dramatically. 

One other possible bullish sign for Euro is that price broke below important 1.1233 level yesterday during US session, but is going back above it now. 

Let’s wait for European Central Bank. 

Effect of Non Farm payrolls last week

Last week Friday Labour market performance surpassed expectations and pushed American stock indices. Standard & Poor's 500 index was the biggest gain in three weeks.

America's largest companies stock price changes locks Standard & Poor's 500 Index last week's trading session came to 1.02%. During the week, the index jumped 1.6%.

Industrial share price changes shows that the Dow Jones Industrial Average index had 0.98% gain. Total purchased and sold about 4.95 billion shares, which was almost a quarter less than the three-month average.

Investors cheered the U.S. Labor Department data showed that in June the U.S. employed 195,000 people, vol. y. far more than analysts had expected. For example, Bloomberg news agency surveyed economists predicted that June will create 165,000 jobs. In May, they created 175,000. True, the unemployment rate remained unchanged at 7.6%.

"Labour market indicators quite strong, while the stock markets are favorable. True, we still have to come to terms with bond yields. We'll see how high it will rise "- Says Matthew platforms, Northern Trust Corp. Share trading guide. The Company manages the investment of approximately 810 billion USD.

Even before the publication of labor market indicators, investors will gladly bought according to the knowledge of Europe. Important news for investors was the European Central Bank President Mario Draghi's words, that interest rates will remain low. According to p. Draghi, key interest rates will be maintained at the same level or even decline as long as necessary. Bank of England manager also suggested that the retention of record-low interest rates.

Investors are in wait for performances of companies. Traditionally, the first public performance of the aluminum giant Alcoa Inc. ' This is going to take place on July 8, after the end of trading day.