07, November 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The euro/dollar continues to trade within the Monday range. Mixed news does not allow to leave the range. We got weak data on the number of unemployed in Spain the other day. The situation in Spain's economy continues to be negative, that will certainly have an impact on the euro-zone as a whole. Everyone waited for clues from Mario Draghi's speech in Frankfurt. Traders expect to get any information regarding monetary policy changes. However, the ECB president's speech was restrained and no hint was announced.

Strong PMI index supported "Cable". In October, the index rose by 2.2 basis points to 62.5, which is the maximum value over the past few years. That helped the pound to reach 1.6061. The mark 1.6060 is a strong resistance level and as a result the growth of "cable" ended just at that level.

USD/JPY "Bulls" cannot take a strong resistance level 99.00. They do not have enough strength for that.

Positive data from US ISM Non-Manufacturing PMI in October were able to reassure the "bull" and the dollar was able to reach 98.64 growths. However, in general, the pair was in a range trading 98.16-98.66 throughout the day. The world's leading stock markets showed a slight decrease. However, the U.S. S & P500 index is close to its historical maximum values.