Photo: Forex Experts on EURUSD Dynamics
Yesterday, the IMF published another report on global economic development. The key thing to pay attention to is an improved forecast as compared to last year's one. This is the first time in 2 years the IMF has improved the forecast.
The richer countries are reported to have accelerated their economic recovery. They say this is a benefit and a bullish driver for emerging economies. Still, the positive dynamics is supported mainly by capital markets rather than real economic sectors. It is sufficient to look at the global unemployment data. According to the ILO, 5 millions more around the globe lost their jobs in 2013. Moreover, they say the global rate of unemployment will be increasing in years to come.
Therefore, the IMF warns central banks around the globe against raising interest rates in the near future since such changes may reduce to nothing the fragile positive tendency we are currently witnessing.
It seems like the central banks do obey. In particular, the Bank of Japan has just left the benchmark interest rate unchanged at 0,1% today.
Well, as far as today's news releases are concerned, the list is scanty. The only major news release is Monetary Policy Committee's Meeting Minutes (UK). Still, a possible local increase in the volatility of GBPUSD is unlikely to affect EURUSD today.
EURUSD
According to the SRP Department of Masterforex-V Academy, the mid-term bias of EURUSD is still bearish. The closest targets are located around 1,34. Still, if the momentum structure of the current downtrend is broken, we may see a prolonged and more sophisticated retracement (my be even up to the end of January).
