04, February 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The last trading day of the previous week was very interesting. The U.S. currency could strengthen its position with respect to its European competitor. The EUR/USD was under pressure during the day amid the weak CPI of the Euro zone in January. The data were at the level 0.7%, which indicates the risk of the deflationary processes development. The “bears” took this release eagerly and began to generate actively short positions. As a result the EUR/USD closed the trading day at the level 1.3487. The GBP/USD also remained under pressure like the European currency.

Investors in the whole world gradually reduce positions in risky assets; on Friday there was a decrease at the foreign exchange market and the stock exchanges. The British currency was no exception amid an empty macroeconomic calendar, having lost during the day 0.3% and ended the trading day at 1.6438.

Japan pleased investors on the last day of the month with the important macroeconomic statistics publication. The data on the consumer price index, unemployment rate, household expenditure and industrial production were published.

In general the results were positive; the growth of inflationary processes in December to the level 1.6% should be pointed out. Against this background the Japanese currency was able to strengthen its position versus its U.S. competitor. Sales in the world’s leading stock exchanges led to futures falling on the stock index Nikkei 225, that also acted as a favorable factor for “bulls” on the yen. At last the trading day ended on the USD/JPY at 102.02.