04, November 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The dollar managed to strengthen its position against its main competitor euro the last day of October. As we said before the overcoming of the strong support at 1.3710 it will open the way to 1.3645. German retail sales came out negative in line with our forecast. The euro quotes during the day sank to a mark 1.3583 . The British pound traded in a moderately upward range.

Euro showed the maximum reduction to the dollar for 6 months on last Thursday falling under the barrage of negative statistics to 2 -week low.

The inflation in the euro area slowed in October, up 0.7 % on an annualized basis, compared with 1.1 % in September - and was the lowest since November 2009.

The euro area unemployment rate returned to September levels at around 12.2%, the September data were revised to the downside, from 12.0 % to 12.2 %. The unemployment in Italy rose to 12.5 % in September, against expectations of growth to 12.3 %.

Investors closed their long positions for the pair dollar/yen after two days of gaining profit, as the result quotes fell to the mark 98.11.