EUR/USD: Euro is being technically corrected; however it is fundamentally weak

The pair EUR/USD is traded upward again at the Forex currency market on Friday morning as part of technical rebound after yesterday’s collapse.

By 9.10 MSK the Euro is at 1.3905 against yesterday’s closing level of 1.3881.

The outcome of the meeting of the European Central Bank was predictable. The rate was left at the level of 1.5% per annum. The head of the ECB Trichet downgraded the forecast for GDP in Eurozone for the current year, without saying anything fundamentally new.

At the same time the USD received considerable support. Barack Obama, U.S. President in his speech before Congress yesterday has offered a package of measures to support employment sector in the amount of $440 billion, noting that current crisis in the country requires urgent measures. “The question is whether we will be able to stop political farce in the face of national crisis and actually do something to help economy”- said the U.S. leader.

The package was called American Jobs Act.

Therefore the U.S. once again showed its intention to fight against the crisis using all efforts, which encouraged supporters of the USD.

Most likely the pair EUR/USD will not go beyond the range of 1.3870-1.3990 at the trading session on Friday.