Daily Market Review - 04/09/2014

EUR/USD

The Euro is retracing from resistance level on the upside. Obviously the height was too challenging for the Euro. This pattern looks like a correction of the upward trend preceding current decline. In light of that the bullish trend is expected to resume.

USD/JPY

The downward trend had ended at 101.55, from where it has rebounded. Now it is rising quite confidently, so the assumption is that it is not a correction but rather a trend reversal.

GBP/USD

After last week impressive rally a bullish momentum has been pushing the rate up for a while. But it has been exhausted, and therefore a subsequent correction is quite expected and logical. Now we can see signs of trend reversal origin. So the bias is bearish with probable support at 1.6709.

Market Ovwerview

Recently American Senate, which is controlled by democrats, supported the bill about resumption of payments to those who have been experiencing problems in finding a job for a long time. Within the whole amount of unemployed so called “long term unemployed” compose around one third, and all these people have not been receiving unemployment benefits since December. Now the document has to pass through the House of Representatives, which might become an insurmountable obstacle.

In spite of earlier reported compromise reached between republicans and democrats, the law doesn’t have any particular perspectives. The thing is that the majority of republicans assume that the most “long term unemployed” are not taking any efforts to find a job. So paying reliefs to them is not likely to become an incentive in resumption of their job search.

More over in the near future democrats intend to vote for raising minimum hourly wage what again might encounter veto of House of Representatives. It seems that Obama’s supporters are already getting scores before elections, because republicans’ position might be for the election company: as if they are trying to pass a bill good for the people but unable to do so because of rich ones.

During yesterday’s vote resumption of paying benefits to unemployed was supported by 6 republicans. That’s apparently a democrats’ plan to confuse their rivals. Earlier proponents of “Tea party”, the most conservative section of Republican Party, has already found itself in isolation, when the debt ceiling was raised against their objection.

Economic Calendar

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