31, March 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

At the end of the week the EUR/USD remained under pressure against the euro/pound backdrop. The positive retail sales report in the UK heartened the “bears” who were actively selling the cross rate, which in its turn took down and the pair euro/dollar. Negative U.S. data also didn’t reassure the “bulls” - GDP was revised downwards by 0.1 % to reach 2.6. % in the final reading for the 4th quarter of the last year. The housing data also disappointed the investors - the outstanding real estate transactions volume for 5 consecutive months goes into a negative territory. Weak data suggest a decline in a consumer confidence which will serve as a negative factor for economic growth in March.

Initial claims report for the last week again came out better than it was expected. Initial claims report in the U.S. fell down by 10 thousand to 311 thousand for the last week - while the projected growth of the applications to 325 thousand average number over the past four weeks continued to decline, decreasing by 9.5 thousand from 327 25 thousand to 317.75 thousand - the lowest level since the end September 2013.

The currency GBP/USD confidently gained weight in the light of a positive retailers release for the UK in February. The data came out at 1.7% on a monthly basis that is 1.2% above the expectations of the market participants. The report came as a catalyst for the continued quotations growth of the British currency.

The USD/JPY was under pressure with the opening of trading in Tokyo. The demand for the Japanese stock market cheered the “bulls” to open long positions on low attractive levels, leading to the price growth. The U.S. real estate market reports and the final data Q4 GDP data disappointed the investors, prompting the “bulls” to begin to take profits.