22, November 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

We received a mixed makrostatistiki data from the USA. U.S. retail sales grew more than everyone expected while Existing Home Sales declined and inflation data was according expectations. Retail sales rose in October by 0.4% while traders waited for a growth by 0.1 %. sales excluding transportation increased by 0.2 % in the expected growth of 0.1%.

Existing Home Sales fell in October by 3.2 % compared with the previous month - to 5.12 million hoses, based on an annual rate while the forecast was a decline in sales by 2.9% - to 5.14 million. CPI fell in October by 0.1 %, whereas no change was expected - at an annual rate inflation decreased to a four -year low of minus 1%.

The euro fell on Wednesday amid Producer Price Index falling in Germany at a faster pace than expected - and then plummeted to week lows versus the dollar after Bloomberg News release where it was announced that the ECB is considering the introduction of negative deposit rates at 0,1%.

British currency updated monthly maximum after the publication of BoE Meeting Minutes, but then fell. On the one hand, the protocols indicated that the UK is expected to accelerate an economic growth in the short-term perspective. Credit availability and conditions for investment got improved. The driving forces are accelerating the growth of household spending and the housing market. On the other hand, the balance of risks to growth shifted in a negative direction because of the situation in the eurozone and a balance recovery. And economic growth is likely to decrease within the next 2-3 years.