07, January 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

On the first trading day of the week the U.S. dollar continued to strengthen versus its major counterparts. The negative data on PMI in the services sector were published in Asian trading session. Earlier, on January 1, the market received the weak data on the index of business activity in China's manufacturing industry which may indicate a possible future slowdown in China economic growth.

The continuation of negative trends in the Chinese economy will lead to a gradual exit of investors from risky assets and care in the U.S. currency. Yesterday Great Britain did now publish any macroeconomic statistics.

Data on PMI index for the construction sector and the volume of private lending went worse forecasts. In the first two hours of trading the British pound ignored this negative statistics, but then the dollar grew. Japanese yen in the first half of the day strengthened versus its U.S. dollar.

Finding support around 104 figures, dollar/yen reversed up. U.S. 10-year Treasury bonds showed the yield of 3% on Friday and on this background it is difficult to expect a strong strengthening of the Japanese yen. In addition, the decrease of the pair is a good opportunity for long-term investors to form long positions that will also support the demand for this currency pair.