Daily Market Review - 02/28/2014

EUR/USD

The pair is consolidating after recent bounce. Overall trend looks bearish in the short term. The rate is now almost directly in between the boundaries, the lower of which might give support to the Euro

USD/JPY

The pair is down. It is slowly approaching support at 100.80. However before testing it there is another one on the way down at 101.50. Important resistance is around 102.60.

GBP/USD

Now the pattern obviously looks like resumption of an upward trend after short rather trendless pause, which followed an impressive rally. We witness slow but steady transition of consolidation into bearish move.

Market Overview

On Thursday we saw an increased volatility of the main pairs and weakening of the US Dollar. The Euro depreciated in the first part of the day in spite of good employment statistics from Germany. Issued reports on consumer inflation in Germany suggest possible contraction of inflation pressure in the EU during coming months, what doesn’t add optimism to the “bulls”. But with the US influence the situation in the market has changed dramatically. Orders on durable goods in the US came out worse than median, what lead bears to capitulation.

The announcement of Yellen was also an important event for the market. The head of the Fed stated that there was no necessity in a faster reduction of stimulating measures, because it could harm the US economy. Stock exchanges reacted to that by rates’ growth, what supported demand for the Euro. Trading ended at 1.3709. The Pound repeated the dynamics of the Euro against the background of empty macroeconomic calendar.

Growth was much more modest and trading ended at 1.6683. The USDJPY has been consolidating within the boundaries 101.38 and 102.82. Japan didn’t bring good news for investors by publishing of interesting macroeconomic releases and in light of that traders turned to stock exchanges and American statistics. Nikkei Futures went down during the first part of the day, what strengthened positions of Japanese currency. So the rates went dropped to 101.71. In spite of the weak report on durable goods orders the pair turned up, testing the maximum of the day. The day ended on the level 102.06.

Economic Calendar

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