Daily Market Review - 05/28/2014

EUR/USD

The Euro continues to trade in the narrow range pinpointed earlier in previous reviews. Support on the downside continues to withhold. Most likely we are going to see a rebound in the short term.

USD/JPY

The pair has broken out above the resistance level to return below the line again. Apparently that resistance is too challenging for the pair at the moment. Thus we are likely to see a decline of the asset in the near term.

GBP/USD

The Pound looks bearish currently. The last abrupt dip on the chart confirms that outlook. The asset is quickly approaching support at 1.6739, which will determine whether the trend will continue.

Market Overview

The main currency pair was trading yesterday with ascend taking advantage of information background as support for technical bounce.

So recovery of the Euro positions continues the second day in a row. The technical rebound, which has been expected by the market, must be productive.

On the other hand a certain support was given to the Euro from the comments of the ECB head Mario Draghi, who performed on the conference in Portugal. The ECB confirmed once again that would act in case of weak inflation. As a reminder the main reason of weakening inflation weakening was the expensive Euro according to Draghi’s claim. The parallel is obvious: if inflation is not recovering the ECB will put pressure on the Euro.

During the preceding week the downgrading of the pair exceeded 100 points and the pair has been fluctuating in a quite predictable pattern. Now technical correction is capable of lifting the instrument up in the area 1.3695.

In the second part of the day yesterday we had some interesting statistics from the USA. Among the most crucial ones only Core Durable Goods Orders report came out worse than expected. Durable Goods Orders and S&P/CS HPI Composite – 20 were “in green”. CB Consumer Confidence coincided with the forecast and constituted 83.0.

Economic Calendar

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