02, April 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The EUR/USD ended the day with a symbolic increase by 0.1 %, despite a weak report on the Eurozone CPI for March. Preliminary data on inflation came at 0.5%, indicating a possible threat of deflation risks for the economy of the European monetary unit. Besides, the strong euro only pushes the Eurozone into a deflation. The first market reaction to this negative event is the euro/dollar sale. But then we saw the short positions closing, allowing the quotations to rise up slightly above the 38th mark. Comments of the U.S. Fed chief also did not support the U.S. currency growth. Janet Yellen pointed to a weak employment in the U.S. economy, while stating that in some sectors the employment situation is still more difficult, than during a recession.

The pair GBP/USD continues an upward trend after a consolidation in the first part of the day on a background of the empty macroeconomic calendar from the UK. Negative FOMC representative comments about the immediate prospects of the U.S. economy cheered the “bulls” to open long positions after a technical correction.

The “bulls” opened the new trading week for the pair USD/JPY on a positive note. The industrial production preliminary data was published in Japan. The mark came at around - 2.3 % on a monthly basis, which is much worse, than the median forecast predicted. The negative background suggests continued problems in exporting, which has a negative influence on a Japanese economy. After an upside to 103.43, in the afternoon there was a rollback due to the negative Janet Yellen's comments on the U.S. labor market prospects. As a result, the market day finalized with the quotations growth by 0.25%.