25, April 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The euro on Tuesday fell to a two-week low against the U.S. dollar on a background of heightened expectations that the European Central Bank could support the region's economy by lowering interest rates the next week.

The pair fell below 1.30 after the results of a survey of purchasing managers in Germany having giving signaled the first contraction since November. The data indicate a strong recession in the euro area. Base on this news we believe that the key ECB rate will be reduced on May 2.

Manufacturing activity in the U.S. rose in April supporting the U.S. currency.

After the UK lost its highest credit rating, the pound has remained remarkably stable.

The index of purchasing managers in the manufacturing sector of China in April fell.
The market continues to publish diverse macroeconomic statistics, which generally affects the euro bulls positions. Thus, on Tuesday, April 23, the players were seriously disappointed by statistics from China.