27, January 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

U.S. dollar showed the strongest decrease in three months on Thursday having reached a 3-week low amid the negative data from China which caused a strong decrease in stock markets, superimposed on the U.S. data, worn also largely negative. The driver for a weakening dollar was growing yen - Nikkei futures fell by more than 3 %.

Last week Initial Unemployment Claims in the USA came out slightly better than expected (330 thousand) and increased by one thousand to 326 thousand. Chicago federal National Activity Index fell in December to 0.16 from 0.69 in November, against the expectations of growth. Preliminary Market Manufacturing PMI fell as well in January to 3-month low of 53.7 from 54.4p. in December while we expected it to grow to 55 p.

The euro sharply rose after the Purchasing Manager Index in France, Germany, and the Eurozone positive release. All preliminary PMI index rose in January and almost all came out better than expected.

The greatest growth showed the Swiss franc on Thursday. Its growth was supported by the Swiss National Bank proposal to increase the countercyclical capital buffer.