During the Asian trading session the USD slightly dropped against most major currencies. The market still tries to digest the fact that the UK is leaving the EU. Continuing uncertainty about future of the UK and the EU, as well as renewed fears of the US Fed regarding the state of the world economy and the tendency to adhere to a soft monetary policy in the United States, as well as the reluctance to increase interest rates, have caused the increase in investors’ demand for safe-haven assets, such as the Yen and gold.

US Fed Governor Jerome Powell said today that the UK decision to leave the EU has increased risks to fragile global economy, he also indicated that the Fed will not rush to raise interest rates.

On Tuesday, the European Parliament held an emergency meeting to discuss the results of the referendum in the UK and to assess its implications for the European Union.

European Commission President Jean-Claude Juncker, said that the country, ex-member of the EU will not automatically receive the same access to the common market, as it used to have being a member of the EU. There will not be any special conditions for Great Britain. Divorce proceedings, which are taking place in EU, have a negative impact on the price of the Pound and Euro.

President of the ECB, Mario Draghi believes that in the next three years, due to the decision of the UK to leave the EU, economic growth of the UK will slow down by 0.5%, and economic growth of Eurozone will slow 0.3%-0.5%.

The ECB faces problems of slowdown in economic growth in Eurozone and acceleration of inflation associated with the expansion of QE program in Eurozone and possibility of the decrease in interest rates.

Recovery of economy and stock markets of Eurozone will depend on the efficiency of the ECB.

Anyway, given the developments on the international scene, Euro will remain under pressure in the short and medium term.

Today’s news will include: indices of business climate and sentiment in different sectors of economy in Eurozone and consumer confidence for June at 11:00 (GMT+2); US inflation index for May and personal income/spending, personal consumption) at 14:30;

One of the most important indicators of the state of the American housing market - pending home sales for May will be known at 16:00.

In case of the positive data, the USD will go up.

EUR/USD: Euro is still under pressure.  Fundamental analysis for 29.06.2016

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