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Market Review May 19, 2014

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.

 

 

 

 TECHNICAL ANALYSIS

 

 

EUR/USD

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.

 

 

USD/JPY

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. 

 

 

GBP/USD

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.

 

ECONOMIC CALENDAR

 

 

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