Daily Market Review - 02/12/2014

EUR/USD

The appreciation of the pair has slowed down. Above 1.3680 it faces resistance, which started to push the rate down. Support is at 1.3563. If it is broken, the pattern will look rather like a downward trend than just a correction.

USD/JPY

Overall trend remains bullish. Current slide is most likely just a retracement. Next goal on the upside is 103. Support is at 102.05. Analysts converge, that it will withhold.

GBP/USD

The Pound is on the rise. At 1.6487 there is some downward pressure. If the rate falls below 1.6388, then the pair might tumble. Otherwise the major trend is expected to resume.

Market Overview

The Pound has been climbing up as had been forecasted. After a calm period investors have started to purchase Pound taking advantage of positive statistics.

Data on retail sales played in favor of the pair. It was that trigger for buying the Pound, that had been desired by traders for so long.

The BRC reports demonstrated, that January retail sales in the stores opened over 12 months ago grew by 3.9%. These numbers were maximum since spring 2011.

At the same time overall sales in the stores without distinguishing the time of opening have increased by 5.4%.

The data are very strong. A month earlier growth constituted only 0.4%, January forecast implied appreciation be 0.8%.

Nevertheless from the BRC report it can be inferred, that there is a discrepancy between food sector and other ones. So this discreapncy doesn’t give any good tips for long term forecasts, because it can be corrected already in February.

Englishmen have been purchasing furniture in the beginning of the year, goods for repairment and other products: segment of non-food goods obviously got ahead. Anyway there is a need to see February reports. Then the conclusion, whether it was a coincidence or not, could be made.

Economic Calendar

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