15, May 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The American currency continued its strengthening. The DXY Dollar basket index gained weight 0.3 %, showing an increase for a fifth day. The EUR/USD remained under pressure amid ZEW institute weak macroeconomic statistics. The Germany business optimism index fell to 33.1 in May which was the lowest since January 2013. The Eurozone economy structural problems combined with the euro high rate put pressure on an economic growth.

The U.S. retail sales release disappointed investors. The April consumer activity fell to the level 0.1 %, significantly worse than the median forecast. For a while the euro/dollar showed a price increase, but after the European market participants departure "bear" trend continued again. As a result, the trading day ended with a decline 0.4 %.

Investors sold the pair GBP/USD the day before. Even a cross reduction - the euro/pound not contributed to the British currency demand formation against the U.S. dollar. Weak U.S. currency retail sales report in the market participants was ignored. On the one hand, the index fell to 0.1 % in April on a monthly basis which is negative for an economic growth. On the other hand, the March figure was revised upwards by 0.3 % to a level of 1.5 % which may indicate a GDP data revision for the upward 1st quarter and U.S. currency position strengthening.

The global demand action cheered "bulls" to open USD/JPY long positions. The major stock indicators confidently gain weight, and S&P 500 American index set a fresh historic high. The empty macroeconomic calendar strengthened the pair.