03, February 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The end of the last week was marked by the strengthening of the American currency versus its major competitors. Germany, the Eurozone locomotive, published the labor market report. The data were better than the forecasts; however investors ignored the positive news background. The United States published the GDP release for the last year 4th quarter. The data came out at the level of the consensus forecast, having showed the value 3.2% q/q. That indicator is quite high; and investors continued to sell the European currency. The EUR/USD pair remained during the day under pressure and completed trades at 1.3550.

The UK published releases on the lending sector. The loans volume to private individuals increased, but the number of approved mortgages were worse than market participants’ expectations. A mixed news background did not support the British currency. The “bears” took the game into their own hands and the GBP/USD showed a decline during the day, having ended the day at the level 1.6436.

Stabilization of the stock markets supported the USD/JPY. The retail sales index decreased in December which also weighed on the Japanese yen. The report on the U.S GDP for the 4th quarter of 2013, having showed the value of 3.2% q/q, added “bulls” a bit of optimism and the trading day the pair closed at 102.