22, March 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

Unexpectedly good went out eurozone trade balance for January: 14.8 billion euros against expectations of 7.9 billion Euros hold its positions before the Ben Bernanke's speech .

Fed speech was neutral, there was only one interesting thing. According to him it is possible some deflation of the stock market this spring, but this risk is adjustable and growth recovers. In practice, this could mean a three-week of growing market, approximately to middle of April (~ 1.3275 to the euro).

Scotiabank believes that the prospects for the euro remain bearish. Focus remains on the Cyprus and how it affects the economy.

Despite the fact that the Parliament of Cyprus rejected the EU plan, euro and dollar continued to grow. The reason is simple. Only a few investors took their money from the euro zone. According to BNY, institutional investors simply transferred their funds out of European bonds in European shares last week.

It was hardly to find an engine which could start up to the dynamics of the pair before the index of purchasing managers in Europe whcih was published yesterday.