Daily Market Review - 05/21/2014

EUR/USD

In the short run the pair looks the same. It is consolidating around the aforementioned support. From the technical point of view there are no change triggers seen, so it makes sense to follow the fundamentals.

USD/JPY

The pair has been down for quite some time. There are no signs of trend reversals seen at the moment, so the bias continues to be bearish. Quite soon the pair might approach the crucial level at 100.

GBP/USD

The Pound is recovering quite fast after the decline, which followed after an impressive ascent. At current levels the Pound encounters some resistance which is capable of pushing the currency back down.

Market Overview

The main currency pair is undertaking growth attempts but it is not likely that before FOMC Minutes the asset is going to change its trading pattern significantly.

The pair is trying to recover but in the last few trading days these attempts haven’t succeeded. Morning Asian growth is neutralized under the influence of statistics. The key factor of pressure for the pair is the ECB position, which has reminded about a too high Euro rate as risk. The ECB is usually not using any verbal interventions. But here the situation is ambiguous: on the one hand inflation growth must be stimulated, but there is reluctance to release too much funds in the market. On the other hand time must be dragged in order to check whether oral sanctions will be enough for cooling the pair in order to reboot inflation.

Today in the evening a release on consumer confidence in Europe in May will be quite interesting. Expectations assume a slight increase of the figure, but it is not clear whether forecasts are going to coincide with reality.

Besides as has been mentioned above there is an issue of FOMC Meeting Minutes. The report promises to be exciting and market is looking forward to it.

Bears are still strong in the EURUSD pair, so it is not ruled out that the pair might drop to support at 1.3700 and further down to 1.3680.

Economic Calendar

The post Daily Market Review – 5/21/2014 appeared first on Citrades.