Now we can distinguish two factors that will have a strong influence on the course of trading. On the one hand, we can expect a decline in the euro quotes, inasmuch as the ECB plans to maintain an increased volume of asset purchases in third quarter in order to ensure a soft financial conditions in the European capital markets. This is a negative signal for the euro.

On the other hand, the yield on US 10-year Treasury bonds is at a three-month minimum and this is negative for the dollar. The debt market does not believe in a steady rise in inflation and believes that inflation will decrease substantially in the fall against the background of the high base of the past year. Now it is difficult to understand which of the two factors will have a stronger influence on the course of trading.

Trading recommendation: flat 1.2060-1.2145