FOREX Forecast For Today: 6th May

The ECB seems to have no decision to change its monetary policy this Thursday will not accept. The latest data on retail inflation in the euro zone, and this 0.7%, against the previous value for the European Central Bank is a signal that while no action is necessary. But yesterday's data on producer price inflation should still make the bank's board to attend because a long period of decline in producer prices certainly have a negative impact on the euro-zone economy. In the meantime, the ECB continue to rely solely on consumer inflation. Reserve Bank of Australia left its benchmark interest rate unchanged at 2.5%. This decision is due to the fact that the apparent slowdown in China reduces the need for raw materials, which are delivered in China Australian companies. Weak economic growth is forcing the RBA to keep rates at extremely low levels. Especially since he is trying in this way to stimulate the growth of the national economy . Decline in consumer confidence for a long time remained under pressure . The decline in exports of raw mining has led to job losses , which contributed to an increase in unemployment . Only the ratio of the Fed to the prospects of its monetary policy currently supports the Australian dollar against its U.S. counterpart . At the same time, the U.S. economy continues to show growth after slowing down this winter. And the continuation of such dynamics will help reduce the volume of foreclosure assets before the end of this year and may even cause the Fed to do it earlier.

Forecast of the Day: 

The EURUSD continues to consolidate in anticipation of the ECB meeting on monetary policy, which will be held on May 8. And most likely it will move in a narrow range of 1.3850-85. But break of 1.3885 could increase to 1.3910. Australian dollar amid rising risk appetite and, despite the fact that it was decided to leave the rate unchanged, receives support, as well as due to the fact that the market does not expect the Fed to change monetary policy before the middle of 2015.