27, March 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

Yesterday the EUR/USD remained under pressure amid the weak business optimism report from the IFO Institute in Germany. This is the third negative report from the locomotive of the Eurozone in the last 7 days, indicating the possible development of a downside risks to economic growth. The ECB representative Makuch mentioned that the European regulator is preparing measures to combat the impending deflation during a press conference with reporters. The "Bears" are even more intensified and enthusiastically opened long positions.

The States have published the reports on a consumer confidence and home sales in the primary market. The first release pleased the investors, but the data from the real estate market showed a reduction of more than the consensus - forecast. After some consolidation, the quotes turned up on short positions profit taking, as well as the activity of the "bulls".

The National Bureau of Statistics published a report on the eve of the UK consumer price index for February. The inflationary pressures still compress, and it jeopardizes the future tightening of a monetary policy by the Bank of England. Nevertheless, a serious price drop "cable" we saw on Tuesday – the pair pound/dollar is oversold and further downward movement needs a technical correction.

The USD/JPY is in the consolidation. The growth in the stock markets maintained a moderate demand for the U.S. dollar in the first half of the day. In the second half of the day on a background of mixed newsflow from the U.S. the "bears" decided to sell quotes down, however, their strong attempts failed.