Daily Market Review - 06/27/2014

EUR/USD

The Euro continues to be strong and is approaching its next upside goal at 1.3650. Around that level there is resistance. The pair looks up to the challenge to rise past the line.

USD/JPY

The pair is declining. The pattern looks quite steep, what suggests the strength of the downward trend. There might be some resistance at 101. Until then the bias is bearish.

GBP/USD

The Pound has recovered well from a dip a few days ago. So it is back above 1.7000. It has broken above 1.7020 and aspires to go even further up. Nevertheless 1.7050 might be a tough obstacle for the Pound.

Market Overview

The Pound during the day on Thursday was trading with an upward trend against the background of revised GDP statistics (to a better figure).

So the mood of connoisseurs of the British Pound has increased: with release of official numbers on GDP of the UK for the first quarter of 2014 the pair GBPUSD got up.

Statistics has shown that in January-March of the current year economy had appreciated by 0.81% against 0.68% quarterly. The data are positive, as they reflect preservation of positive impulse in economic system.

Recently the head of the bank of England Mark Carney commented on the condition of the market. According to him retail estate sector is the main threat to British economy. Forming bubble in the sector had been conspicuous, and the situation wasn’t cooled down by cancellation of governmental support of crediting market.

Carney has emphasized that households have access to borrowed funds; their debts are not a threat to financial stability of the state. Meanwhile the boom in real estate sector of Britain continues, and the committee on financial politics can’t control accommodation prices.

A couple of years ago the same committee stated, that households could support expanding spending of the economy, but they actually hold back the funds and don’t use them. In addition the sector was assessed as unstable. The same segment has recovered and now scares away not by instability but by vigorous growth.

Economic Calendar

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