07, April 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

Last Thursday the U.S. dollar continued to strengthen its position versus most of its competitors. The EUR/USD has come under a wave of sales after the head of the ECB press-conference. Mario Draghi with his colleagues did not take any drastic measures in monetary policy, but there were the negative notes in his tone. The European regulator guide still doesn’t notice the increasing deflation risks. It was also announced, that the Governing Council discussed the quantitative easing during his meeting. Such negative comments are more than enough for the large number short positions formation.

The service sector UK PMI has been showing a downward trend for the fifth consecutive month. The ISM positive employment report yield from the U.S. non-manufacturing sector promised only pressure on the British pound. The employment in the services sector increased to 53.6 p.

The USD/JPY was in a consolidation for the most of the week falling down after the report on the U.S. labor market publication. We look at this consolidation as a stop before the further price growth - the major players are accumulating positions for the further shot up now.