Currency pairs technical review (January 28, 2014)
January 28, 2014, Tuesday, 10:37 GMT | 05:37 EST | 15:07 IST | 17:37 SGT
Euro: The euro fell to its maximum value against the dollar, while back below the levels of the session. Early growth of the euro was fluff associated with the release of strong data from the institute Ifo, according to which the business climate index in January rose to 110.6 from 109.5 values ??unrevised December, reaching its highest level since July 2011 and exceeded economists' forecast. In turn, the index of current conditions rose to 112.4 compared to 111.6 in December. The figure was slightly higher than expected 112.2. The expectations index also improved more than expected to 108.9 from 107.4. The expected result was 108. The EUR/USD pair rose to $ 1.3718, but then fell to $ 1.3655 during the European session.
Japanese Yen: The yen touched a seven-week high against the dollar on sales of assets in the stock markets in Asia and developing countries, leading to increased demand for safe-haven currency. The yen lost previously won positions after the release of data on the trade balance of the country. Japan's trade deficit reached a historic high. The deficit amounted to 11.5 trillion Yen ($ 113 billion), which is almost two times more than last year's figure 6.9 trillion Yen, according to the Finance Ministry in Tokyo. In December, imports increased by 25% compared with a year earlier, and exports gained 15%, resulting in a monthly deficit of $ 1.3 trillion Yen. The reasons for this were the growth of energy supplies and the weakness of the Yen. The USD / JPY pair rose to Y102.65 during the European session.
American trading session:
British Pound: The pound has risen considerably against the U.S. dollar, offsetting more than half the losses incurred in the last session. Add that traders continue to actively speculate that the Bank of England may be the first of the leading CB who will raise the interest rate. In addition, for the growth of currency helped expectations of tomorrow's publication of GDP data for the fourth quarter. Recall that in the third quarter of the UK economy grew at an annualized rate of 1.9 percent, while fixing the third consecutive quarterly increase and rising hopes that the UK economy has moved to let the recovery. It is expected that the GDP data for the fourth quarter show that the UK economy has continued to expand. Experts note that even if the pace of growth will be slightly slower, it probably will not affect the monetary policy of the Bank of England. The GBP / USD pair rose to $ 1.6575 during the European session.
U.S. Dollar: The dollar traded slightly higher, though lost some previously won positions. The growth of the U.S. dollar was due to the expectations that the Federal Reserve will continue to minimize the quantitative easing program at the January meeting. More and more people are inclined to believe that the Fed will simply continue to reduce QE. In general, the economic recovery is strong enough, despite the recent negative statistical data from the United States. According to the median forecast of economists at the next meeting of the FOMC, which will be held January 28-29, the Central Bank again reduce monthly asset purchases to $ 10 billion. The pressure on the currency had a report, which showed that sales of newly built homes fell by 7% to a seasonally adjusted annual rate of 414,000 in December from 445,000 in November. Result November was revised down to 19,000. Economists had forecast an annual rate of new home sales at 457,000 in December, although many of them noted that the unusually cold and windy weather may have contributed to the sales activity. New home sales in December were the weakest since the summer months, when mortgage rates jumped in response to reports that the Federal Reserve plans to reduce its bond-buying program.
Gold: The gold prices fell markedly today, departing from the 10 - week highs as traders began to gradually fix their positions ahead of a key meeting of the Federal Reserve this week. The cost February gold futures dropped to $ 1260.70 per ounce on the COMEX today.
Oil: The oil prices declined moderately today, recording the second -session decline in a row, which was associated with the release of weak data on the U.S. housing market. With this in mind, experts have begun to show concern that demand for fuel in the U.S. - the world's largest consumer - may slow. The March futures price of WTI fell to $ 95.89 a barrel on NYMEX.