24, July 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

In spite of summer usual lack of volume in all directions, the dollar could not shake off the bearish tone that had been set in the opening of the week, EUR/USD reached a fresh 5-week high of 1.3218 in the U.S. session after worse than expected for some numbers.

As we do not expect big news in the next 24 hours, the data expected today, including a preliminary PMI of China and Eurozone PMI will give the market signals about the state of the global economy.

The cross-rates falling with the yen resumed during the Asian session. In this case, the declining course of dollar/yen was additional pressure on the dollar.

We note that the reduction in cross began on Friday, the eve of the publication of the results of elections to the upper house of Japan's parliament.

Portuguese Prime Minister said yesterday that the country needed to regain their lost confidence. The yield on 10-year bonds fell by 48 basis points to 6.26%.

Weak U.S. data put pressure on the U.S. dollar against the euro. The dollar remained under pressure after the publication of weaker-than-expected data on sales of existing homes dollars.