May 19, 2014
The main currency pairs have ended the last trading week in narrow ranges. The Euro consolidated in the end of the week in spite of bull sentiments. Macroeconomic statistics in the USA have showed mixed direction. Indicators of real estate market have come out better than median forecasters, what is positive for American economy. Herewith index of consumer confidence in May disappointed investors. As a result trading has ended at 1.3693.
On Friday there was again demand for the Pound against the background of the currency pair EUR/GBP. Earlier we mentioned in our reviews that current levels look attractive for forming of long positions and one can expect some activity from speculators. After the release of a week report from Michigan University on consumer confidence, the pressure on American currency exacerbated and as a result trading has ended at 1.6814.
The USDJPY has been trading flat within the narrow range 101.35 – 101.66. Moderate growth on world stock exchanges couldn’t encourage bulls for opening long positions. Published macroeconomic indicators from the United States also didn’t contribute to demand on the US Dollar against the Japanese Yen. The downgrading of consumer confidence suggests positional decline of personal consumption in May, what is negative for the pace of economic growth. As a result the trading has ended at 101.51.
As has been mentioned the Euro is in a narrow range. After a dip and consecutive recovery it is back to consolidation. Anyway in the mid term the trend still looks bearish.
The pair is slightly above important support at 101.32. If it is broken the downward trend will exacerbate. On the 8 hour chart it can be seen that the area around this level hasn’t been crossed in a long time.
The Pound continues to go down from the peak slightly beneath 1.7000 reached in May. The forecast for the week is a continuation of a prior trend. There might be some support for the pair around 1.6700.
Monday, May 19
All Day Holiday Canada – Victoria Day
Tuesday, May 20
01:30 AUD Monetary Policy Meeting Minutes
08:30 GBP CPI (YoY)
Wednesday, May 21
Tentative JPY BoJ Press Conference
08:30 GBP MPC Meeting Minutes
08:30 GBP Retail Sales (MoM)
15:30 USD Fed Chair Yellen Speaks
18:00 USD FOMC Meeting Minutes
Thursday, May 22
01:45 CNY Chinese HSBC Manufacturing PMI
07:30 EUR German Manufacturing PMI
08:30 GBP GDP (QoQ)
08:30 GBP GDP (YoY)
12:30 CAD Core Retail Sales (MoM)
14:00 USD Existing Home Sales
Friday, May 23
06:00 EUR German GDP (QoQ)
08:00 EUR German Ifo Business Climate Index
12:30 CAD Core CPI (MoM)
14:00 USD New Home Sales