08, May 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The EUR/USD gained 0.4 % amid the positive on retail sales report in the euro area. The index rose to the level 0.3 % in March which is better than the median forecasts. The investors look at the release as a leading inflationary pressure indicator in the region which is favorable for an economic growth. It is worth noting that investors are unreasonably optimistic about the single European currency now. Low yields on U.S. 10 - year Treasuries also does not provide support for the dollar.

The positive UK PMI supported the demand for the British currency yesterday. Total score came at around 58.7 against expectations 57.9. The pair grew after the publication of the data – the market
participants still believe in the strong recovery of the United Kingdom economy.

The other day the Bank of Japan published its minutes. The meeting outcome was the unanimous decision of nine Bank of Japan members to leave the monetary policy unchanged, confirming the planned volume infusions of 60-70 trillion yen in Japan's economy. According to them, the economic situation in the country as a whole is in line with expectations.