Daily Market Review - 05/02/2014

EUR/USD

The pair pulled back from a little more than 10 pips away from the 1.3900 target. Nevertheless analysts do not regard it as a trend reversal. It is rather a small correction before another attempt to break the crucial level.

USD/JPY

There was no need of support on the downside to trigger a rebound. Slightly above that level the pair started to ascend again. Upside resistance at 102.70 still remains a relevant challenge for the pair to overcome.

GBP/USD

The Pound continues to be bullish. No changes here are expected so far. At the moment the rate is close to 1.6900, which doesn’t seem to be a big challenge for the pair.

Market Overview

The Euro on Thursday was aspiring to get higher in spite of endless stream of statistics and reports: bulls were aiming at 1.3900 and further up.

The Euro continues to go up steadily: the abundance of statistics has turned out to be even excessive for investors. On the one hand the tentative report on GDP of the USA of the first quarter has shaken the Dollars positions, economic growth constituted only 0.1% yearly against the forecast of appreciation by 1.1%. This is perhaps the weakest factor of growth recently. In the government they say that the reason for such decline is a very cold winter this year. If so then GDP is going to recover already in the second’s quarter and will be able to fulfill yearly goals.

The FED of the USA is quite confident in the power of economical system: according to Yellen’s opinion the economy is now in the faze of growth after winter decline. Labor market is weaker then desired and stimulating program of QE3 continues to reduce in planned volumes by $10 billion monthly comprising $45 billion a month.

European inflation in April has appreciated a bit by tentative count and constituted 0.7% yearly against the previous number of 0.5%. The index hasn’t managed to increase up to the forecasted one, but amount of deflation risks has decreased. Now the focus of the market will move slowly to reports on US labor market. ADP release has come out alright. Today we’ll see a report on unemployment outside of agricultural sector.

Economic Calendar

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