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Market Review June 25, 2014

June 25, 2014

USD/JPY

The pair continues trading in the range. Apparently it is becoming more narrow. Most likely it is a consolidation, which is just a pause in the prior trend. So long term bias is bullish.

 

GBP/USD

The main currency pair on Tuesday was trading quite calmly, expecting the evening block of the US publications.

In spite of that investors are not in a hurry to react on neutral background, because even empty macroeconomic calendar and the absence of more or less significant comments might “scare” the main pair.

Meanwhile data on New Home Sales in the USA came out yesterday. The actual figures were much higher than forecasted. Consumer Confidence was almost 2% higher than expected (85.2 vs. 83.5).

 Recently it has been found out that home sales on secondary market in the USA in May increased up to 4.89 million against the forecast of 4.74 million. At the same time April figures have been revised to a higher number. Statistics on real estate is remarkable for the opportunity to get long term vision of what is going on in the US economy. If Americans are interested in such long term purchasing, than things in the economy are not so bad.

Today there is also an important event in the US market: quarterly GDP release. In addition at the same time there is release of Durable Goods Orders (monthly figure) report. 

 

TECHNICAL ANALYSIS

 EUR/USD

The Euro is on the rise. There is a clear up slanting trend line acting as support for the upward move. The rate is approaching resistance at 1.3636, which is quite an obstacle on the further way up.

The Pound has been retracing from above 1.7000 for a few days already. Next support on the way down is 1.6937. If it doesn’t withhold the fall will extend far down.

 

 

ECONOMIC CALENDAR

 

03:00    AUD  RBA Assist Gov Lowe Speaks              

06:00    EUR  GfK German Consumer Climate 

 

12:30    USD  Core Durable Goods Orders (MoM)    

 

12:30    USD  Durable Goods Orders (MoM)    

 

12:30    USD  GDP (QoQ)    

 

12:30    USD  GDP Price Index (QoQ)