05, December 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The U.S. dollar was trading downwards versus the major currencies amid a lack of any meaningful U.S. macroeconomic data. The pound strengthened and the yen rose amid the long positions closing and the decline in stock markets.

The British pound strengthened on Tuesday amid the growing activity in the UK construction sector to its highest level since August 2007. The UK construction PMI rose to 62.6 in November from 59.4 in October, signaling a strong rise in the construction sector. The index is above 50 p. indicates an increase in claim activity in the sector. The index is above 50 p. during seven consecutive months.

The euro also followed the pound and grew due to lower unemployment in Spain in November for the first time for 4 months. In November, the number of unemployed in Spain fell to 2.5 thousand people, in comparison with the previous month, when it rose to 87 thousand - while the expected growth was 50 thousand. The November decrease was the first one in the history of the country and probably was a signal that the bottom of the employment crisis in Spain has been reached.