EUR/USD (a 4-hour chart)
The “bears” won in the struggle with “bulls” for the major currency pairs.
Last week central event was a consumer price index report in the States. The CPI index was by 0.1% better than the forecast was. That was positive for the U.S. dollar in view of future reductions of the U.S. Federal reserve stimulus. However the initial reaction of the market was not in the dollar favor: the main American currency competitors strengthened after the publication. Soon the emotional outburst was over and the American currency buyers entered the market.
The consumer inflation in the United States rose in December by 0.3% m/m and by 1.5% in annual terms, core inflation – by 0.1 m/m and 1,7 y/y, which was in line with expectations. The U.S. housing market index from NAHB came down in January to 56 from the revised to the deterioration of the value 57 in December, while the expected growth was 58.
The Philadelphia fed index rose in January to 3-month maximum 9.4 against 6.4 in December, having exceeded the expectations of growth by 8.7.
The yen went up after two days of easing amid the stock market negative dynamics. The Bank of Japan in its quarterly report has raised economic growth estimation of 5 from 9 regions of the country amid the home demand increase and Unemployment Rate and Personal Income improvement.
The Swiss franc also strengthened amid the yen rising. On Thursday the head of the Swiss National Bank Jordan said that the value of the franc was still overvalued.