11, June 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The first half of the week the U.S. dollar continued to strengthen against major competitors. The EUR/USD remained under the pressure again – the market participants still do not pay much attention to the single European currency against the ECB easing monetary policy backdrop. The leading French bank Societe Generale published the release which indicates that many financial institutions are forced to sell the euro, as the law does not allow them to hold assets with negative returns. The Eurozone investor confidence index from Sentix fell sharply in June to 8.5 compared with 12.8 in May, against the growth expectations. The employment trend index in the U.S. from the Conference Board rose in May to 118.58 with a downwardly revised 117.32 April value.

The GBP/USD was trading in a narrow range 1during the day. On the background of empty macroeconomic calendar investors were not in hurry to open positions and even the euro/pound decrease had no tangible support to the "cable" against the American rival.

In the battle of "bulls" and "bears" for the USD/JPY a winner still has not been identified. We got the final Japan's GDP for Q1. The index was better than the forecast. However, the Japanese yen strong strengthening has not followed. Final figures for the GDP growth in Japan in the 1st quarter were increased to 1.6% q / q vs. 1.5% initial assessment and 0.2% in the previous quarter. This is the maximum growth of 2.5 years, with the third quarter of 2011.