19, March 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

A multidirectional dynamics on the major currency pairs were observed at the beginning of the trading week. The EUR/USD grew up by 0.1 %. The investors ignored the Eurozone CPI final report, which came out negative, demonstrating a decline in the inflationary pressures to 0.7% on an annualized basis. The threat of the deflation processes is still on the agenda of the traders on the euro/dollar, however, the leadership of the ECB continues to ignore this problem.

The States issued a strong industrial production report for February, which again points to a way out of the January "pits" world's leading economy. However, this statistics also were ignored and the investors focused on the geopolitics. EU foreign ministers agreed on the visa ban and the assets freeze against the 21 Ukraine and Russia officials, which are considered guilty of violating the Ukraine sovereignty. The global investment community has counted these measures as "soft" and happily began to increase the positions in the risky assets.

The currency GBP/USD amid a lack of interest from the UK releases focused on a statistics from the U.S.. The industrial production in the country increased by 0.6 % in February, indicating a continued economic recovery. Against the reduction of the geopolitical risk - the investors were buying the "cable".

The USD/JPY pair has opened the trading week with a growth by 0.3% after 4 days of declines. A growth in the world's leading stock markets, coupled with a good data on the industrial production in the United States have supported the U.S. dollar versus the Japanese yen. In addition, the current levels are attractive to institutional investors, which also play into the hands of "bulls".