Daily Market Review - 1/2/2014

Technical Analysis

EUR/USD

The bias on Euro is bullish overall. Anyway the peak, which has been reached recently, looks too challenging at the moment to be tested again soon. Anyway if there is no fall below the trend line, the ascend will go on.

USD/JPY

The pair continues its way upwards. A short consolidation near 105 is likely to be followed by continuation of the prior trend. Thus we expect to see further growth of the pair.

GBP/USD

The Pound's general trend is upward. Immediate resistance is around 1.6600. If the rate pulls back from the line downwards below the up slanting trend line, which acts as support, we might see a retracement of the rate.

Market Overview

The last trading day of the last year has passed in a quite calm manner. The Euro and USDJPY have been consolidation near the levels 1.3800 and 105.00 respectively. During the US trading session positive reports on Consumer Confidence in the States were released. Nevertheless any strong growth of the US currency wasn't seen. Investors didn't rush to open long positions on the US Dollar before the holiday. British currency satisfied investors and finished trading on maximum levels of the year. As has been mentioned in one of the recent reviews, the Pound has been always appreciating against the Dollar for the last 6 years. This time, the Pound didn't break the tradition and ended the day by its firm rates' growth.

Last year one of the main goals of European politicians during the whole year was bringing back investors' trust to the EU zone. If we look at current statistics, some confidence is seen only in Germany. At that on the debt markets things are currently calm, even though a year earlier rates' changes on national bonds were one of the main issues.

Investors are not scared that much by high unemployment and quite weak economic recovery, if current situation could be defined so at all. Indignation of Europeans is growing, and elections in the European parliament are approaching. Recent research shows that “antieuropean” parties might receive around 25% of all seats in the Parliament.

Economic Calendar