10, January 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The day before the American currency strengthened seriously versus its European and Japanese rivals. And only the British pound stood under the pressure of the “bulls” on the dollar. But let's talk about everything step by step.

Let us start with the EUR/USD. During the day positive retail report was published in the Eurozone, however investors have ignored this release. The market received strong data from the Agency ADP employment from the States. The indicator is at the level 239 000, it is the maximum value for the last 13 months. These data in combination with a positive report from the ISM in the services sector can count on a good report on Non-Farm on Friday on 10th January that will support demand for the U.S. currency. Late in the evening the last meeting “minutes” of the US Fed were published. U.S. regulator said that he expected a gradual incentive measures reduction and decisions would be made on the basis of the labor market, as well as on the inflation level.

The EUR/USD closed a trading day below the 36 figure, which plays into the bears’ hands. Market participants have not received important macroeconomic statistics from the UK. Reduction of the Euro/pound cross-rate, which set fresh minimum for at least the past 12 months increased a demand for the pound/dollar, in consequence of which there was quotations growth of the British currency.

After several days of technical correction there was a growth of quotations of the dollar/yen. A strong release from ADP supported the spirit of the “bulls”. Reports of the last Fed meeting pointed to the further collapse of incentives and waiting strengthening of the American currency.The USD/JPY closed the trading day near the psychological level 105.00.