03, April 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The EUR/USD moderately grew up amid the number of unemployed decrease in the leading Eurozone economy. The Germany employment growth could again became a positive factor for economic growth in the European monetary unit. The Germany is a traditional “magic wand” for the Eurozone, and that cheered the “bulls” to open the long positions. The American statistics saddened the “bears” - the index of purchasing managers in the manufacturing ISM came out worse than the median forecasts predicted, indicating the USA slow recovery after a winter slowdown. Still the currency growth was permanent and was replaced by a decrease.

The currency GBP/USD remained under the pressure, influenced by the two factors. The first one is the manufacturing PMI report, which demonstrated a decline for 4 consecutive months, indicating a possible peak in the UK economy recovery phase. The second one is that the “bears” are actively opening the short positions in the light of the short-term GBP/USD overbought.

The USD/JPY stopped its growth. In the first part of the day the market participants received the quarterly Tankan manufacturers activity release. The report demonstrated a growth comparing with the previous quarter, but the final mark turned out to be below the market participants’ expectations. The investors still hoped for a higher business activity in the first quarter of this year, as from today the sales tax rate increased, which certainly will make a negative factor for the economic growth in Japan.