EUR/USD (a 4-hour chart)
The U.S. dollar continued to strengthen versus the Euro. The negative report from the ZEW Institute on business optimism in Germany showed a continued negative trend in the leading economy in the Euro zone. Once the leaders have some obvious problems, then we can expect negative news from the periphery. Amid this the euro/dollar quotes at the moment dropped to 1.3790. However, the “bears” were happy for a very short period of time, the investors decided to take profits on the short positions after the positive report on CPI in the United States publication.
Manufacturing activity declined sharply to 5-month low in the Fed region in New York in April. The manufacturing empire index fell down in April to 1.29p. versus 5.61 in March, while the expected increase in the index to 8 sts looked most disturbing decline in the new orders index. Fed's poll in New York is the first monthly manufacturers' report.
The “bulls” and the “bears” for the pair GBP/USD failed again to determine the winner. The UK consumer price index for March indicates contraction inflationary pressures, that contributed to the British currency decline. Nevertheless, the investors continue to look with optimism to the “cable” and redeem it on any heavily discounted.
However, the declines in CPI are negative for the United Kingdom economy and soon we will see the first alarm calls.
Positive report on inflation in the United States was unable to provide strong support for the pair USD/JPY. At the “bulls” fuel for the growth ended near 102 figures. Blame served as geopolitical tensions in the world. Due to this backdrop, the investors are in no hurry to open the long positions.