06, January 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The beginning of a new trading year was marked by large-scale sales on the major currencies. In the Asian trading session a consolidation was observed due to the lack of Japanese investors. In the European trading session the “bears” took trading in their own hands. In the leading economies of the Eurozone the final results of the PMI manufacturing index were published. In general the data were moderately revised for the better, but the pair EUR/USD ignored these indicators. European investors decided to regain the Chinese news. The day before, on 1st January, weak data on PMI manufacturing index published in China; it can further specify the slowdown in the Chinese industry.

Against this background the pair euro/dollar and major European stock markets swooped down. On the eve of it in the UK the report on the PMI manufacturing index was published. The data was worse than the f forecasts; and the GBP/USD traders decided to fix their profits on their long positions.

Near the 64th figure quotations of the British currency found a support; and there was a bounce. The Japanese yen on Thursday was strengthened notably with respect to its main competitor. Even the positive data on the ISM manufacturing index did not make changes in alignment of forces in the market. The “Bulls” continue to fix profits on long positions, as a result Japanese currency strengthening is observed.