07, May 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

Major currency pairs "trampled" on one place and closed the day at opening prices. The only exception was opposition of the dollar and the yen where the yen buying was firstly observed after the weak data on the Chinese economy, and then its selling, which could be triggered by a slight increase in the USA “Treasuries” yield.

The U.S. economy news came very little and they did not have any impact on the market, despite the fact that its results showed a better forecast. ISM announced PMI growth for the non-production sphere in April to 55.2 from 53.1 in March with expectations to see 54.1 and Conference Board study on the subject of unemployment, pointed to the improvement in labor market indicators - the employment index rose in April to 118.0 vs. 117.7 in March, signaling a strong employment growth in the coming months.

There were not so much re-posts on Yesterday (Tuesday), we assume that the trade balance in March recorded a deficit reduction to 40.2 billion versus -42.3 billion previously, and the April economic optimism index from IBD/TIPP marked an even greater reduction - from 48.0 to 47.6. Probably American newsflow didn’t push to market activity, the trading tone may be set by events in the euro area where a more substantial package of information was planned to release.

There was only few published news in the Eurozone. Despite the fact that the data concerned so important topics for the unit economy as inflation, any actions at the market it had not caused. Eurozone Composite PM which takes into account the manufacturing and service sectors, shows a growth after the final calculations to 54.0 from 53.1. We will pay attention to the retail sales in the Eurozone in March, there will be a likely decline by 0.2% m / m after +0.4% m / m previously.

Yesterday the market presented last, but probably the most important indicator activity, as the indicator will reflect the dominant trend in the economy “islands” field - the services sector. The forecasts suggest that after slowing in March, the indicator will show the growth resumption - Purchasing Managers Index (PMI) for services in April is forecasted to rise to 57.9 from 57.6 previous data. It is possible that it will be able to “cheer up” the market to trigger some pound buying.