21, March 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The market was very "hot" in the middle of the week. The U.S. regulators gave a little surprise to the markets - in addition to the reductions in the volume of bond purchases at 10 billion per month, it was announced on the anticipation of a more rapid unemployment reduction. The rating inflation outlook has not changed - the Fed expects a return to the target level of 2 % in 2015-2016. Against this positive background, there had been a rapid growth of the U.S. dollar versus its rivals.

On the currency pair GBP/USD in the European trading session there was a rising trend in the lights of this background of a good report on the UK labor market. The number of an unemployed in January decreased, which together with the wages growth is a good signal for the continuation of the economic recovery in Great Britain. In the light of this background, we can expect an increase in a private consumption, which is very favorable for GDP. Following the announcement of the Fed meeting - pound fell down more than a figure for one hour. The investors are in a hurry to sell the GBP/USD, based on the continued collapse of stimulus measures at the next meeting FOMC.

The Japan's trade balance release for February was unable to provide the strong support for the "bears" - despite the reduction in deficit, the rate came out worse than the median forecasts, which indicates a problem with the Japanese exporters. The "Bulls' long-awaited continuation of the growth drivers for quotations and eventually waited the U.S. Fed officials again went on the reduction of the incentives, which is very favorable for the U.S. dollar. In the light of this background, there was a strong growth of the pair which easily overcame some several key resistance.