Daily Market Review - 02/10/2014

EUR/USD

The Pair is evidently in high spirits. The slope of the up slanting trend line is quite steep, suggesting the strength of bullish trend at least in the near ter. Resistance on the upside is around 1.3685.

USD/JPY

The pair is on the rise. Apparently the Yen wasn’t impressed much by poor NFP, so it is not in trying to take advantage of it. There is an important resistance at 102.9. It is crucial for the pair to overcome it in order to continue its ascend. Otherwise the bearish trend could resume

GBP/USD

The Pound is growing against the American Dollar. It is now approaching upside resistance. In case the breach fails, retracement is potent to pushing the currency pair below 1.6350.

Market Overview

Last week was the first week of the month, so traditionally there was an abundance of various events. The Euro appreciated by 1.1. % against the background of positive comments of the ECB head and weak report on labor market in the US. Draghi continues to surprise the market with his optimism. On Thursday February 6 he concluded based on results of the ECB meeting, that there was no deflation development in Europe and there’s no point to undertake any actions in an attempt to solve the issue. Investors reacted quite emotionally to this claim, what resulted in the Euro rally.

In the end of the week we saw NFP data released. Increase has constituted 113K, what is worse than forecasted. The second month in a row American employers have not been in a rush to take new workers, what is a quite concerning sign for the US economy. Against such background the Euro continued ascending and stopped at 1.3634.

As for the British currency in the struggle of bulls and bears there was no victorious side. In general most data were quite poor, what was in favor of bears. But bulls took advantage of weak numbers on Non Farm Payrolls raising the pair back up. Nevertheless the pair lost symbolic 0.1% ending at 1.6407.

The Yen has been appreciating quite well in January. But in the first week of the new month it has been losing its positions. The downward pressure brought the rate to 100.77, but bears couldn’t achieve more. Later on bulls took the initiative adding 0.3%. So trading ended at 102.35.

Economic Calendar

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