16, April 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The pair EUR/USD remains under pressure due to the increasing geopolitical risks, as well as the United States’s positive macroeconomic statistics. The Ukraine's political crisis only reinforces the conflict escalation with the Russia, which leads to exit risky assets from investors.

In the lights of this we see the euro/dollar “bears”’ activity. The market participants are pleased with the U.S. retail sales positive report. The rate rose up to the level of 1.1% in March, which indicates a good enough American consumers’ confidence. The release for February was improved, which signals about more optimistic U.S. GDP report, than it was previously expected.

The “bulls” and the “bears” for the pair GBP/USD failed to reveal the winner. Geopolitical instability has had little effect on the British Pound, and even the positive statistics from the United States to retailers in March failed to reassure the “bears” for a large number of short positions opening. At this moment the quotation mark fell down to 1.6695, then the “bulls” were able to take revenge.

Correction on the world's leading stock markets, coupled with a good report on retail sales in the United States, helped the “bulls” to regain some lost ground in the pair USD/JPY. In addition, the current levels are attractive for long-term buying from the investors, who expect the Japanese yen further weakening in 2014.