Daily Market Review - 06/13/2014

EUR/USD

In spite of general bearish trend there are some signals of rebound from the level of 1.3521. In case the trend expands, there is a crucial challenge for the pair on the upside, which is resistance at 1.3601.

USD/JPY

The pair continues to descend. The pattern falls within the framework of a trading channel. If it holds the trend is expected to continue. At 101.5 there is some support waiting.

GBP/USD

Apparently right now we witness some resistance after a quite impressive few days rally. Nevertheless it is approaching the peak reached in May 2014. That point was the highest for the asset since May 2011.

Market Overview

The main currency pair has been trading with downward trend this week. So bears do not leave attempts to test yearly minimum.

The pair is under big downward pressure by Thursday. Some rebound has good reasons for that, but the ECB pushes the driver to sales again.

The ECB has issued monthly report 7 days after June meeting, where it had been mentioned, that the ECB would undertake measures in of case low inflation in the Euro zone. This decision has been accepted unanimously. The ECB members are ready for not traditional measures.

The ECB believes that there are no reasons for actual deflation. But the package of softening measures is being developed just in case anyway.

The ECB realizes that the moment t for effective stimulating has been missed and now it is very hard to eliminate deflation symptoms from the economy. Nevertheless the regulator will follow the situation having a few scenarios in case of situation deterioration as a last resort. Meanwhile the ECB doesn’t expect an abrupt improvement of the situation with consumer inflation.

Besides unemployment in Europe still remains on very high levels; it has negative implication for current economic situation regardless of any particular point of view.

Economic Calendar

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