EUR/USD (a 4-hour chart)
The published negative consumer price inflation reports in the major German federal districts - indicate the possible compression of inflationary pressures in the euro area in the coming month, which just does not add optimism for "bulls". However, after coming to the market the American traders the situation has radically changed. The orders for durable goods in the United States came out worse than the median of the forecasts leading "bears" to the surrender.
The fact that inflation has stopped falling is certainly good, but the threat of a deflation remains high in the region. The news from Europe just support that idea, in particular, the French PPI cannot serve as a reason for optimism in this regard. The data on the retail sales in the Republic of Germany has exceeded all expectations but that's it for them market hardly reacted.
It is hard to ignore Janet Yellen’s speech before the Senate. The head of the Federal Reserve said that there was no need for a more rapid stimulus cutting now as they may harm the U.S. economy. The stock markets have responded to these comments by a growth that supported the demand for the single European currency.
Japan has not pleased investors by interest macroeconomic publication releases, and on this background bidders for the pair USD/JPY turned their sights on the U.S. stock markets and its statistics. The futures on the Nikkei 225 declined in the first half of the day that strengthened the position of the Japanese currency.