09, April 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

Yesterday, the main dollar competitors could return some of the lost ground. The EUR/USD grew by 0.5 % after some short positions were closed, besides we received a moderately positive German industrial production report. Germany finally pleased the investors which supported the small demand for the single European currency. In addition, some ECB officials stated that the European regulator was not going to start incentive measures that also played into the hands of euro "bulls ".

The Spain industrial production turned out to be better than expected - it rose by 2.8 % y/y in February versus expectations of 1.7% growth. Eurozone investor confidence index strengthened to 14.1 in April from 13.9 in March. The index has been growing for the fourth consecutive months and continues taking the highest level for three years.

The GBP/USD grew as well. The industrial sector showed a better than expected result. We believe that this factor was the primary driver for the pound growth.

Sales at the world's leading stock markets cheered "bears" to open short positions in the pair dollar/yen. Geopolitical tensions growth again to leave as usually investors prefer to leave the risky currencies.