06, February 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

There was a lateral trend on major currency pairs yesterday. Amid an empty macroeconomic calendar on the Euro zone and the USA the EUR/USD was traded in a narrow range 1.3493-1.3538. The Markit Economics Agency published the PMI for the construction sector in the UK in January. The figures exceeded the expectations, having set multiyear maximums.

It seems that the market begins to wait for the results of important events, which should be announced this week, namely the decision of the ECB and the Bank of England about the prospect of their monetary policies as well as the January report on the U.S. labor. During yesterday's consolidation the dollar closed the session by almost opening prices versus its European opponents and slightly strengthened versus the yen. The data on the U.S. economy gave ambiguous results and did not stimulate activity on the market.

Manufacturing orders in the USA in December fell by 1.5%, that was slightly better than expectations of decrease by 1.8%. Decrease in orders was mainly due to a sharp decrease in orders for transportation equipment; without consideration of it orders rose by 0.2%. The index of economic optimism in the U.S. from the IBD/TIPP dropped in February to 44.9 p., compared with 45.2 p. in January, against expectations of growth. The Federal Reserve Bank of Richmond President, Jeffrey Lacker said on Tuesday that the Fed would probably continue to reduce the asset purchase on $10 billion each meeting, as there was a significant improvement in labour market performance.