Daily Market Review - 02/26/2014

EUR/USD

The pair is appreciating quite well. On the chart we see that the trend has been intact since at least February 20. Resistance is approximately at 1.3815. Support is on the up slanting trend line.

USD/JPY

The pair is correcting after a prior ascent. Nevertheless overall bias is bullish. Next goal on the upside is the area near 102.82. Anyway if there is no abrupt fall beneath 101.5 no trend reversal is anticipated.

GBP/USD

After a dip slightly below 1.6600 the Pound has started to recover. However chart suggests the trend shift is slow. We obviously witness the beginning of the process, so the trend is not expected to strengthen too much soon.

Market Overview

The Pound is trading with an ascent this week. It is quite logical and expected: recent correction was sufficient.

The Pound is back on track. It‘s clear that correction would be necessary, and last week the pair dropped again in order to resume an upward trend.

This week it was learnt, that the European commission had raised the forecast of growth for the British currency, but drew attention to clear export parameters, simultaneously downgrading their rank. According to commission’s evaluation an economic growth in the UK is unbalanced, though it is the most stable in Europe at the moment.

For more stable recovery it is important, that export and investments grow as fast as consumer spending. There might be issues with that, but it is important to attempt to attain such state.

Clean export without import taken to account will not stimulate increase of financial stability of Great Britain for the coming 24 months. A quarter earlier the European commission expected a moderate support of English economic system.

In 2013 the British Pound appreciated by 1.9%, this year economy should expand by 2.5%, in 2015: by 2.4%.

Overall expectations are not bad. There are not so system risks and decline triggers in GDP growth. Perhaps these are the factors which support Pound buyers.

Economic Calendar

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