21, January 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The dollar rose versus the Euro and the Swiss franc, fell against the British pound and closed neutral in the dispute with the yen. If in the confrontation with the currencies of continental Europe the general attitude to “the buck” support the “green” amid fears of the market that the situation with inflation in the Eurozone will encourage the ECB to additional mitigation measures; the loss relative to the pound are explained suddenly by very positive data on the British economy.

Michigan preliminary consumer sentiment index pointed decreasing optimism of American consumers, but remained at a quite high level 80.4, having descended from 82.5.

The most interesting can be a news package of Thursday when indicators of the requirements for unemployment and sales in the secondary housing market will be presented. Obviously the current week will not show increased activity, it will probably be a band trade, if of course developments in other regions have no surprises.

According to results of the week the US dollar gained 0,78% on the dollar index and rose to all major currencies. In addition to the strong report on retail sales the dollar was also supported by numerous presentations of the Fed last week, almost all of them endorsed the further reduction of the QE3 program. The U.S. dollar fell Australian dollar most of all against (-2,40%). It is followed by the Euro (-0,94%), the Swiss franc (-0,80%), the Canadian dollar (to-0.65%), the New Zealand dollar (0.55%), the pound (-0,33%) and the yen (-0,14%).