Daily Market Review - 03/28/2014

EUR/USD

The Euro continues to depreciate against the US Dollar. By now the downward trend has stopped and the rate is consolidating. Support is approximately at 1.3730 levels.

USD/JPY

The pair has been fluctuating a lot recently. Now it is consolidating in the narrow range. A symmetrical triangle can be identified on the chart. Further trend remains quite unclear.

GBP/USD

The Pound is on the rise as has been mentioned. After yesterday’s rally it has caught its breath and now looks quite stable. The trend is expected to resume, so the bias here is bullish.

Market Overview

The Pound this week took quite good pace of recovery from the local minimums as we expected earlier; around 1.6480 there was another bottom of sales.

The British Pound touched the local bottom where it had been pushed by aggressive bears. But being oversold played in its favor: the market has started to buy out sales.

Recently one of the representatives of the BoE committee mentioned that British economy had been feeling much better than its neighbors in Europe, that’s why the forecasts on its condition were quite confident. Labor market is stabilizing and inflation remains under the target level, what is also quite good talking to account previous faze of CPI growth.

As for raising of the interest rate there can’t be any distinct answers regarding the issue. Toughening of the monetary policy of the Bank of England will be gradual, but it is hard to forecast when it is going to happen.

It is true that recovery of British economy is by fits and starts. But there is no issue here, because national monetary policy takes to account all key aspects without exceptions.

As for Russian ruble the dynamics of yesterday was not very different from the one of the previous day. The appreciation has slowed down. Meanwhile the CB is not going to refuse interventions. It means that if situation deteriorates, regulator will continue to support the rate of the Ruble, protecting it from negative situation

Economic Calendar

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