Daily Market Review - 04/23/2014

EUR/USD

Recently the pair has been quite volatile as it has been fluctuating within the broad range. Now it is trading at the upper boundary. Only a decisive break above it will be able to take the pair outside the range upwards.

USD/JPY

The pair is steadily appreciating. An up slanting trend line acts as a good support for the ascent. There is a resistance at 102.73 on the upside. It might be an insurmountable challenge which is likely to push the pair down.

GBP/USD

The ascent has apparently reversed to the opposite falling off resistance at 1.6839. Support is at 1.6777. It is able to stop the decline. Nevertheless the short term bias is bearish.

Market Overview

After Easter holidays investors have started to work actively. In the first part of the day there was a growth of Euro against the background of demand on stocks on the leading stock exchanges. Risk appetite is on quite high level, what turned into a lot of purchases on stock exchanges. Moderately positive data on real estate sales on the secondary market in the USA cooled down the “bulls”: in March the index reduced by 0.2% instead of expectation of 1.1%. Another report suggests recovery of the main world economy after winter recession, what will support American currency in the midterm. Against such background market participants have been fixing the profit on long positions and trading ended at symbolic growth of 0.1% at 1.3803.

On Tuesday trading on the Pound was within the frame of upward trend. Investors are still taking advantage of improving labor market in Britain, what supports demand on the Pound. In the second part of the day after publishing of good report on the US real estate market there was consolidation of the Pound and as a result trading ended with growth by 0.25 at 1.6824.

The USDJPY was under pressure in the first part of the day against the background of sales on Japanese stock exchange. With the US market participants the demand on the US Dollar has increased against the background of moderately positive statistics on real estate market in the USA. As a result by the end of trading it was at the level of 102.59.

Economic Calendar

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