EUR/USD (a 4-hour chart)
The trading week the pair EUR/USD remained under pressure amid sales by the institutional investors. ECB negative comments officials about the high euro exchange rate cheered the “bears” to open short positions in the euro. The German CPI was published during the U.S. trading session. The inflation preliminary data came worse than the median forecasts of 1% on an annualized basis. However, the European currency strengthened despite the negative report. The famous exchange saying – “buy the rumor, sell the fact” worked well.
The GBP/USD closed the trading week with an increase in price, ignoring the poor UK balance payments statistics for the 4th quarter. The negative balance grew up to the level 22.4 billion pounds in the last quarter of the last year.
The pair USD/JPY had a steady demand. At the beginning of the trading day a set of an important macroeconomic statistics was published. The inflation, retail and employment indicators went better than in the previous month, which allowed the Japanese yen to strengthen.
In the afternoon, amid rising on the world's leading stock markets - the “bulls” entered the market and opened long positions, expecting a further weakening of the Japanese yen in the second quarter of this year. Today the sales tax rate will be increased to 8%, which will make a negative factor for the inflationary pressures. The Bank of Japan, in its turn, will go to a further yen weakening to achieve the inflation target of 2%.