22, January 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The first part of the trading week was calm enough. In the Asian trading session the China GDP for the 4th quarter was published. The indicator was by 0.1% better than the Bloomberg agency's forecast was. Amid an empty macroeconomic calendar and banking output in the States a report from China acted as the sole driver for the major currencies. The EUR/USD looked technically oversold after yesterday's trading session, and in conjunction with moderately positive data from China quotations grew up during the day.

The Euro climbed to an 8-week minimum versus the dollar, but then strengthened before the German ZEW Economic Sentiment publication which, as it is expected, would show growth to new almost 8-year highs. The data on manufacturing German inflation came out slightly better than expectations.

The GBP/USD in the first half of the day showed the growth too, however in the middle of the European trading session the quote reversal was observed against the background of partial fixation of long positions after a strong growth in the end of the last week.

The yen strengthened amid Asian stock markets decrease on the Chinese economic growth weakening, the Japanese Nikkei 225 fell by 0.6%. Data on manufacturing and investment in fixed assets for December were worse than expected.

The growth rates of the world's second largest economy in the 4th quarter decreased to 1.8% q/q from 2.2% q/q in the 3rd quarter, whereas the reduction only by 2% had been expected. In 2013 the China's GDP grew by 7.7%, which coincided with the pace of increase in 2012 that were the worst since 1999.