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Currency pairs technical review (April 01, 2014)

April 1, 2014, Tuesday, 15:50 GMT | 10:50 EST | 19:20 IST | 21:50 SGT
Contributed by Forex-Metal

Asian and European trading sessions:

Euro: The euro rose sharply against the dollar, returning with all previously lost ground. Pressure on the pair had a weak data on inflation in the eurozone, but the comments of the ECB representative Mr. Nowotny were able to offset this negative.

As it became known, the annual inflation rate in the euro zone fell again in March, beating the average forecast with experts and reaching its lowest level since late 2009. According to a report in the March consumer price index rose by 0.5 % in March 2013 compared with a gain of 0.7 % a month earlier and rated at 0.6. Add index was more and more away from the target of the European Central Bank, which is set at "a little less than 2% ." The data also showed that the cost of energy in the eurozone fell in March by 2.1 % after declining 2.3% in February. Food, alcohol and tobacco products rose by 1 % after rising 1.5 % the previous month. Core CPI, which excludes volatile items - such as energy and food - growth slowed to 0.8% from 1.0% in February.

With regard to the Novotny, he said that the recession in the euro area came to an end, and the economic situation in the region has significantly improved, but he still has to deal with their problems. The EUR / USD pair rose to $ 1.3810 during the European session.

Japanese Yen: The yen declined significantly against the U.S. dollar, which was associated with the expectations of today's speech by U.S. Federal Reserve Janet Yellen to be held in Chicago.

Recent comments on the Bank of Japan that it was too early to discuss specific exit strategy from quantitative easing, also weighed on the yen. Analytics think that now, there are several factors that can support the growth of the pair this week: first, the U.S. was to publish a number of reports indicating the U.S. economic recovery. This will increase the rate differential gap between the U.S. and Japan and, accordingly, will pressure on the yen, and secondly, the global risk sentiment remains unstable, as the conflict between Russia and Ukraine is still a threat to global geopolitics. The USD / JPY pair rose to Y103.32 during the European session.

Swiss Franc: The Franc rose against the dollar, despite the weak data. The growth was due to the weakening of the U.S. currency, as well as the head of the SNB Jordan comments. He noted: the Swiss franc is still high, and the minimum level for the pair EUR / CHF - an essential tool for maintaining price stability. Meanwhile, the banker added that the current exchange rate policy will remain relevant for the Swiss National Bank in the foreseeable future, but do not rule out negative interest rates to maintain proper monetary conditions.

American trading session:

U.S. Dollar: The U.S. dollar lowered on a background of comments Janet Yellen . Fed Chairman Yellen, who spoke today at a conference in Chicago, defended the loose monetary policy of the USA, stating that its purpose was to help the economy and the labor market in particular.

Ms. Yellen said that Fed’s policies for stimulating commitment are still a necessity, and this situation will continue for some time. She also pointed to the fact that low interest rates will remain low for an extended period of time. The Fed chief has listed a large number of part-time workers, slow wage growth, a large number of workers who do not have full employment, fall in the share of the working population as indicators that the labor market is still in a difficult situation. She also noted that for some Americans the current economic situation was more complicated than in a recession.

Gold: Gold prices traded within a range close to Friday's six-week low and then declined due on growing optimism about the U.S. economy and weak demand in the physical markets of Asia. The cost of the April gold futures dropped to $ 1288.50 per ounce on the COMEX today.

Oil: The cost of oil brand WTI retreated from three-week high on increased production in Iraq and the continuing tense relations between Russia and the West. The May futures on U.S. light crude oil WTI  fell to $ 101.00 a barrel on the NYMEX.