28, November 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The dollar fell against most major currencies after the release of weak consumer confidence data which continued declining in November, after falling sharply in October connected to the government shutdown. The pound and the euro were being tradedup, the yen a bit strengthened. Australian and New Zealand dollar continued to decline.

The euro also strengthened amid growing consumer confidence in Italy. Consumer confidence in Italy in November rose to 98.3 p. from 97.3 p. in October, exceeding the growth expectations to 97.5 p. The pair was supported by the statement by the head of the People's Bank of China that the European currency is an important part China's foreign exchange reserves.

The pound was trading upwards yesterday, having shown no reaction to the BoE Inflation Report and the speech of BoE governor Mark Carney who said about the sharp recovery of the UK economy, strong employment growth and improving business confidence. At the same time, Carney reiterated that the fall in the unemployment rate to 7% would not trigger an automatic increase of the rate of the central bank.