16, January 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The day before the band trade was observed on the EUR/USD pair. The Eurozone industrial production report for November pleased investors with good data, but as we expected reaction of the market on this event would be negligible. Attention of investors was focused on retail trade in the States.

The total retail trade release was at the level of the forecast median, but the data on retail sales excluding vehicle sales showed the growth in comparison with the expectations of market participants. Late in the evening the FOMC representatives Plosser and Fischer said about the correctness of the Fed course in the QE3 program reduction, and made it clear to market participants that it was not necessary to dramatize the Friday report on Non-Farm.

Trading day the EUR/USD pair closed at the level 1.3674. The British currency strengthened during the day with respect to its American competitor. And even the weak inflation data for December is not a hindrance – after strong sales on Monday it was a technical rebound on Tuesday.

The growth in world stock markets actively encouraged “bulls” on the USD/JPY pair. Moreover after sharp falling of quotations on Friday and on Monday “bears” decided to fix profits, which in combination with rising futures on the Nikkei 225 gave a good impulse to the upward tendency. Trading day the USD/JPY pair closed just above the 104th figure.