12, March 2014

EUR/USD (a 4-hour chart)

 EUR/USD (a 4-hour chart)

Euro didn’t change at the end of the day. Industrial production in France came out worse than it was expected, whereas in Italy it is better. In March investor confidence index from the euro zone rose up from Sentix a bit worse than it was expected, from 13.3 in February to 13.9, and continues to be on the 3 - years marks. The Bank of France has left the country's GDP growth estimate for 1st quarter unchanged at 0.2 %. ECB Noyer said on Tuesday that he was’t very pleased with the power of the euro. ECB is open to all types of tools and ready to act if the risks will occur. ECB Lautenschlager also declared that the ECB is open to the idea of negative rates and asset purchases, if necessary.

The pound fell before the parliamentary hearings on inflation, where the head of the British central bank Governor Mark Carney had his speech. The Bank of England representative Charles Bean declared that further pound growth was able to damage the country's exports and rebalancing the economy from domestic spending to a foreign trade. An additional negative factor, according to Citigroup, is an investors' yield from long positions in the pound, which earlier were opened based on the growth associated with the transaction between Vodafone and Verizon, which ended in the late February.

On Tuesday in the last two-day meeting Bank of Japan had left monetary policy unchanged, as well as an overall assessment of the economy. This is a sign of the central bank confidence in the fact that the economy is able to withstand the impending increase in April sales tax. The Bank of Japan lowered its assessment of exports, but also rose up the assessment of investment and industrial production.

The Australian dollar came down compared to weak Chinese data, published over the weekend and Monday. China's trade deficit in February was $23 billion, while the expected surplus balance was $ 14.5 billion.