EUR/USD (a 4-hour chart)
The EUR/USD continued to decrease amid bearish trend increasing in the EUR/GBP cross course which set fresh minimum for at least the past 15 months. In the afternoon, there were published U.S. Federal Reserve last meeting minutes which as expected did not bring any surprise to U.S. dollar. The Fed has kept unchanged the U.S. economy prospects assessment, the several FOMC representatives indicated the downside risks to the economic growth. Against this background, the euro was able to return some lost ground.
The UK positive retail trade report pleased investors. Thus, sales in April retail - sector rose 1.3 %, instead of market expectations 0.4%. The upward trend in the labor market indicator confirms retail which is favorable for the economic growth. Amid this the demand for the British currency was strong. The "bulls" impulse ended here and the pair started consolidation near 69th figure. As a result, the trading day the pair ended with a 0.3 % increase.
As we expected, the Bank of Japan did not make any changes in its monetary policy and has no plans to do so in the near future. The monetary regulator continues to believe that the negative sales tax rate increasing effect will be restrained, that will not have strong downside risks to the economy. In the light of this there was demand for the Japanese yen, and quotes at the moment reached a new level. Then, the Japanese exporters came to the market and supported the demand for the U.S. dollar which together with the rally in the world's leading stock markets allowed the pair to update the day maximum values.