29, May 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

On Wednesday, the U.S. currency continued to strengthen against most of its competitors. The EUR/USD remained under pressure against the positive macroeconomic statistics publication from the United States. The orders for durable goods in April rose by 0.8 %, which indicates increased demand from the U.S. consumers and the positive factor for economic growth.

The euro was down against the ECB officials statements backdrop which reinforced expectations monetary policy easing, although it was slightly strengthened at the beginning of the day. The ECB Novotny said that inflation in the euro area was significantly below the target level ECB's 2%, and so low that there was a decrease growth risk. Novotny made it clear that the current discussions are directed toward interest rates lowering. The European Central Bank President Draghi said the ECB kept in mind the risks related with too long low inflation period still he did not see the deflation risk.

The Bears actively sold the GBP/USD pair yesterday. The States pleased investors with positive orders for durable goods and consumer confidence from Conference Board. Together with the EUR/GBP cross-course short positions closing - British pound significantly weakened against its U.S. counterpart.

The Rally in global stock markets supports the demand for the USD/JPY. Nevertheless, the "bulls" rather cautiously go long, knowing that in the face of rising inflationary pressures in the Land of the Rising Sun it is difficult to expect a strong Japanese yen weakening. As a result, the USD/JPY ended trading with symbolic increase by 0.1%.