28, March 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

There was the volatile dynamics on a major currency pairs on the Forex market yesterday. Various rumors and statements by officials from the ECB on the introduction of negative rates in the euro area and incentives to combat the deflationary environment had a negative impact on the pair EUR/USD. The orders for durable goods in February came out better than the median of forecasts which have enhanced the “bears” activity. Another report points to the leading global economy recovery, after two months of decline.

The GBP/USD continued to rise up despite the positive macroeconomic data on durable goods from the U.S. The British currency looked short-term oversold, prompting the “bears” to begin to take profits on a short positions, and the “bulls” to open a long positions at an attractive levels. As a result, we saw a quite strong “cable” growth, but the compression of inflationary pressures in the United Kingdom will certainly deter the pair GBP/USD in the nearest future.

In the USD/JPY the “bears” had a slight advantage, but intraday volatility was quite low – 60p. sales for the world's leading stock markets led the pair down. The reason for it was the comments of the U.S. President Barack Obama, who said, that in the nearest future new sanctions against Russia would be announced. The geopolitical risks increase again and the investors get out of a risky assets.