An uptrend in the US stock market will have a beneficial influence on the value of this currency pair, inasmuch as it is historically correlated with the S&P500 index. The broad market index last Friday renewed its historical maximum again. Two factors had influence on the growth of quotations. Firstly, this is the growth of the balance sheet of the US Federal Reserve, which increased by $19.2 billion due to the purchase of treasury securities.

Secondly, from July 15, the Central Bank of China will reduce the required reserve ratio for all banks by 0.5%, which will free up about 1 trillion yuan ($154 billion) for banks. Investors have already started to play this factor in advance, insofar as next week Chinese bankers will be able to increase the volume of speculative transactions in the financial markets.

Trading recommendation: Buy 109.80/109.50 and take profit 110.20.