EUR/USD (a 4-hour chart)
There was nothing interesting in the macroeconomic calendar. The important statistics were provided at the end of the last week. Only the U.S. markets with the American index’s leading indicators for March were noted with statistical data yesterday. The investors typically do not particularly response to this release, but there can be anything on a “thin” market.
In general, the foreign exchange market activity will be back only tonight. The ensuing five-day week is unlikely to bring sensational data or the monetary authorities’ completely new comments, regarding the key economies status. Most likely, the market will be preparing for the Federal Reserve meeting in late April and May European Central Bank meeting. Now it is a perfect time for the investment portfolios mid-term revision.
The pound strengthening versus the dollar is supported by a low unemployment rate in the U.K. and the U.S. quantitative easing policy, the dollar weakening.
The market participants’ expectations are related to the Bank of England monetary policy tightening, in early 2015. Also, this rate supports British economy recovery high opportunities.
Fundamental factors, constraining the pound growth versus the dollar are the following:
the payments negative balance, and the U.K. emerging housing boom.
The likelihood that the investors and the traders have taken into account the positive British economic recovery trend and the Bank of England the interest rates raising up in the GBP/USD pair’s current course, resulting in its growth may be limited.