01, May 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The EUR/USD got under the wave of sales amid the weak Germany inflation report. According to preliminary data - April consumer price index fell to 1.3 % year on year, below the market participants’ expectations. Investors doubted the Eurozone CPI strong growth and hastily closed long positions. The ECB in the light of compression inflationary pressures as well as the euro high rate significantly increases deflationary risks.

The UK GDP for Q1 disappointed investors – instead of the expected 0.9 % figure came out at around 0.8 %. As we remember the British monetary regulator in its last meeting protocol gave the GDP estimate of at 1%. Naturally, this cheered "bears" to open short positions and quotes descended to the level 1.6791.

Meanwhile, no less than the "bulls" were able to take revenge amid a moderately negative statistics from the United States. The Conference Board consumer confidence for April came out slightly worse than consensus - the forecast, but even the value of 82.3 points to claim sure enough optimism of American consumers.

Positive sentiment on the world's leading stock markets supported the demand for the USD/JPY, the "bulls" failed to consolidate at 102.72 resistance. The USA consumer confidence came worse than the forecast was which led to long positions profit-taking.