Daily Market Review - 06/26/2014

EUR/USD

As has been mentioned in the overview the Euro is on the rise. At the moment the goal of the rebound is 1.3650. It will be hard to pass any higher. In other words that’s the resistance level.

USD/JPY

The pair has been declining from 102.30 since June 18. There might a trading channel forming. So the bias is bearish. Support for the asset is at 101.60.

GBP/USD

The Pound is bearish in the near term. Though on 1 hour chart the rate is below down slanting trend line. So the Pound is still approaching support at 1.6937, which might be able to reverse the trend.

Market Overview

The Euro keeps growing on Thursday, getting support from weak data on the US economy. It seems that there is no better incentive for the Euro then bad US statistics. The pair has been fluctuating in the area of 1.3600, but when weak data had appeared, the asset has skyrocketed.

Either investors were missing significant triggers, or traders recently have revised their trading positions and expectations.

Anyway statistical figures came out weak and have been disappointing, even though good indicators have not been expected.

The final release on the US GDP for the first quarter has demonstrated the fall of 2.9%, making worse already minor expectations. These numbers have been published already with season factor taken to account. In other words they are the worst from the beginning of 2009. Then the US economy dropped by 5.9% quarterly.

If in the beginning of the year White House explained any failure in statistics by too cold winter and anomaly complicated weather in January- February, now these reasons do not work already. Economists present as an argument revised statistics on Consumer Consumption, trading, and also expert parameters, where it is also hard to find any positive signs.

At the same time published data on Durable Goods Orders in May indicator dropped by 1%, while market expected neutral number without any changes of April release. It is the first fact of the figure downgrading in 4 months. In other words everything played against the Dollar, and the Euro has been inspired by that.

Economic Calendar

The post Daily Market Review – 6/26/2014 appeared first on Citrades.