30, October 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The beginning of the week was positive for the U.S. currency. As we said in our previous review - euro, pound and yen "bears" will gain forces. GBP/USD quotes slipped the most. It's not surprising as retail sales data from the Confederation of British Industry in October totally disappointed investors.

In October, retail sales indicator fell to 32 in comparison to September. After these negative quotes, "cable " have fallen by 75 for a few hours, having stopped next to a strong support level 1.6119.

As we get mixed news background from the USA, the dollar could greatly strengthen its positions against euro and yen.

Weak real estate market data diminished "bull" fervor on the dollar.

The risk appetite among investors is still present, which is not playing into the hands of the American currency.

Meanwhile, Italian Business Confidence grew to its highest level in two years, despite not strong domestic demand. The index rose to 97.3 from 96.8 in September, while it was forecasted falling to 96.3.