02, May 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The EUR/USD remained under pressure when the market got the CPI publication. The inflation rose up to 0.7% year on year in April, according to preliminary data. That is slightly worse than the median forecast. The high euro rate in complex with monetary contraction carries risks to the price stability in the region.

The U.S. GDP report for the 1st quarter disappointed the investors. The leading economy in the world grew up by only 0.1% in the first three months that is significantly worse than the consensus-forecast. The strong decline in the winter months had a negative impact on economic growth.

The pair GBP/USD fully repeated the euro/dollar trading dynamics. The States released two reports - on employment from ADP in April as well as Q1 GDP. And if the first release was better than market expectations were, the second one completely disappointed the investment community. The U.S. Federal Reserve two-day meeting results were announced - as it was expected, the regulator agreed to reduce the incentive program QE3 by $10 billion. The final press-release announced the increased household spending and robust economic recovery after the winter slowdown. The labor market expects the Fed to recover in the medium term. In general, the investors completely ignored the American monetary regulator moderately positive report and continued to open long positions.

The USD/JPY was hit by a wave of sales due to the Bank of Japan meeting outcome and the weak macroeconomic statistics from the United States. Japanese monetary control, as it was expected, retained the monetary policy unchanged in April. In addition, during the press-conference it was announced that there are positive expectations about the prospects for economic growth in the current fiscal year. The U.S. GDP for Q1 negative report provoked a large number of the short positions opening.