17, June 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The single European currency came under attack again on the last trading day of the week. The ECB monetary - credit policy easing has formed a steady downward trend for the EUR/USD pair and even moderately negative statistics from the United States cannot prevent the "bears" to open short positions. The Michigan Institute report on consumer confidence in June showed the value 81.2, which is on 2 points worse than median forecasts. This release combined with data on retail sales points to a slowdown in the U.S. economic growth.

The Bank of England Governor speech provoked the "bullish" rally on the GBP/USD pair. Mark Carney gave a pleasant surprise to the market - "interest rates may rise sooner than it was expected by the market." Against this background, there was a sharp increase in the British currency, as within an hour the quotes rose by 94 points, exceeding 69 figure. Later in the day there was also a demand for the pair.

The BOJ meeting once again hasn’t brought surprises to the Forex market participants. As expected, the monetary regulator did not make any changes in the monetary - credit policy, saying that the current situation in the economy requires an incentives increase. However, we see that early warning signs begin to appear. The industrial production decrease has a negative impact on exports and Japan economic growth. Against this backdrop, the Japanese stock market investors began to open long positions that supported the demand for the USD/JPY pair.