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Currency market weekly review (April 21 - April 25, 2014)

April 28, 2014, Monday, 16:02 GMT | 11:02 EST | 19:32 IST | 22:02 SGT
Contributed by Forex-Metal

Euro: (+0. 22%) Throughout the week, the euro showed noticeable fluctuations, but ultimately ended the day with a slight increase. On Monday, the euro fell against the dollar, reaching a minimum in this week. The economic calendar was almost empty - Europe continued to celebrate the Passover. Some support to the euro was the news from Italy, the third largest economy in the eurozone. By the end of Tuesday's euro rose slightly, gaining most of the previously lost positions. Data had little support in terms of construction in the eurozone, according to which the volumes were up just 0.1 percent from January, when they rose 1.6 percent. Environment for the euro also was not too successful in the afternoon - in the first half of the trading currency rose sharply, but profit taking by market participants immediately caused a sharp its decline. Initially, the euro received a boost from strong data on the index of business activity in the euro zone and Germany. On Thursday, the euro has grown significantly, returning with almost all previously lost ground. Experts note that the movement was associated with the data on orders for durable goods in the United States, which exceeded forecasts, and statements of ECB head Draghi, who has demonstrated a very dovish attitude. Draghi noted, inflation in the euro area could grow by lowering interest rates. On Friday, the euro was almost unchanged against the background of the lack of important economic data.

US Dollar: The dollar rose moderately in the early weeks. The dynamics of U.S. data was impacted by results of business activity and the Chicago Fed index of leading indicators. According to the report, the national index of business activity of the Federal Reserve Bank of Chicago in March fell to a level of 0.20 points from 0.53 in February. By the end of Tuesday's dollar fell slightly, but regained some of the previously lost positions. Support currency was data that showed sales of existing homes fell 0.2 % in February to a seasonally adjusted annual rate of up to 4.59 million. On Wednesday, the dollar showed a decrease, but returned earlier lost ground. Currency grew, not even looking at the weak reports. Data from the Ministry of Commerce showed that seasonally adjusted sales of new homes fell in March by 14.5 percent, reaching an annual rate of 384,000 units, and fixing the second consecutive monthly decline. On Thursday, the dollar fell considerably, which was associated with the release of weak data on the labor market. On Friday, the dollar was little changed. The U.S. dollar was slightly influenced by data presented by Thomson-Reuters and the Michigan Institute. They showed that in April, American consumers feel more optimistic about the economy than was recorded in the last month

British Pound: (+0.11%) Pound on Monday rose moderately against the dollar, but could not hold the position, and returned to the opening level. Little impact on the dynamics of the news had on improving the forecast of growth of the UK economy. On Wednesday, British markedly decreased on the published minutes of the meeting of the Bank of England. At the meeting of April 9, members of the Monetary Policy acknowledged: UK economic recovery is gaining momentum. On Friday, all previously earned lost ground against the dollar, while closer to a session low, which was associated with the closing of positions before the weekend. Experts point out that despite the low activity, the pair shows the relative stability, trading near its yearly high.

Japanese Yen: (+0.22%) At the beginning of the week the yen fell slightly against the dollar, which was associated with the release of data on foreign trade deficit in Japan, which rose more than expected , triggering selling yen. On Tuesday, the yen strengthened against the U.S. dollar , as the data from the Cabinet showed that the index of leading indicators Japan fell less than expected in February, but remained at six-month low . On Friday, the yen updated weekly high against the U.S. dollar amid growing tensions between Russia and Ukraine, which provokes the demand for safe haven.