Daily Market Review - 03/05/2014

EUR/USD

The pair is declining after an impressive rally. Gradual decline in steps can be seen on the chart. On the downside the rate met some support. If is holds, the trend is likely to reverse.

USD/JPY

The pair has apparently reached resistance on the upside. So now the rate is ready to pull back down. Though right now it is most likely consolidating at current levels.

GBP/USD

The pair is down. It approaches downside resistance which could stop the decline. If it is breached further downward move has potential to extend far below current levels.

Market Overview

Yesterday the US Dollar was appreciating. The pair spent the day within the range 1.3720 – 1.3781 against the background of absence of interesting reports in the USA and the EU. Comments of Russian president Putin about absence of necessity to use the army in order to settle the conflict with Ukraine encouraged bulls on stock exchanges. Therefore in the first part of the day rates were growing, what supported demand for the Euro and pushed the rates up to 1.3781. However the trigger for growth was over on that and by the end of the day there was a downgrade of the pair.

There was a big demand for the GBPUSD in the beginning of the European session against the background of growth on global stock markets. But weak report on PMI of the construction sector in February cooled down the “bulls”, so the final figure constituted 62.6, what is 1 point less than median forecast.

In spite of the increase of volume of mortgage in the last report, weather conditions in February were a negative factor for the sector. Against that background “bears” became active, what lowered rates of British currency to 1.6650. In general by the end of the day the pair added up 0.1% ending trade at 1.6672.

The pair demonstrated positive dynamics by the end of the day by 0.8%, ending trade at 102.25. Since there were no interesting reports from Japan and the USA, investors turned to stock exchanges, where rates were going up with against the background of relatively calm geopolitical situation.

Economic Calendar

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