Market Review Overview The markets were volatile on Wednesday. The Euro was trading in the narrow range in expectation of the results of the two day meeting of the USA FRS, in the first part of the trading day. Everyone expected of the FED a further contraction of the QE3, in spite of the weak economic growth in the winter in the leading economy of the world. While the US regulator surprised everyone. There was an announcement about a faster contraction of unemployment, along with a decrease of volumes of bond purchases by $10 billion a month, assessment of the inflation prediction didn’t change. In 2015-2016 the FRS expects to return to the goal level of 2%. There was a strong acknowledgment of the US dollar in contradiction of its main counterparts, against such positive background. The pair ended with losses of 0.9% at 1.3830, as a result of the trading day. Against the background of a positive report on the labor markets, an ascent was seen on the Pound. In January, amount of unemployment was reduced, this along with the growth of the salaries, is a good signal for the furtherance of the recovery of Great Britain. The USD/JPY was joining close to a strong resistance at 101.66. In February, report on trading balance, couldn’t support “bears”. However, “bulls” have been waiting for a growth spark that came from the US at the end. Technical Analysis EUR/USD The currency tumbled yesterday. The descent was roughly 100 pips. Announcements yesterday of the FOMC and Yellen obviously had its impact on the pair. With potential subsequent rebound, the forecast is merging on current levels. USD/JPY This pair is similar to the other pair, but the other way around, with the Dollar rallying against the Japanese Yen. From the height reached the rate is gradually declining, this suggests correction, with the outlook being bearish. GBP/USD The pattern that the Pound is in, is very alike to that of the Euro, the dissimilarity is that after the fall the rate is already going back up. With this the Pound is sturdier than the Euro right now, as we can already see the regaining of the rate. Economic Calendar 12:30 USD Initial Jobless Claims 14:00 USD Existing Home Sales 14:00 USD Existing Home Sales (MoM) 14:00 USD Philadelphia Fed Manufacturing Index
Posted on: Thu, 20 Mar 2014 13:40:28 +0000
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