Market Review for April 18

On the market there is a moderate correction, but in general the movement were quite restrained. As a result, EUR/USD ended the day near 1.3040 and GBP/USD — in the area of ​​1.5270.

The U.S. data are not pleased, but not disappointed enough to trigger a new wave of demand for EUR/USD. Indicator of the number of applications for unemployment benefits rose again, but only for 352 thousand from 348 thousand before, and the number of continuing claims altogether dropped to 3.068 from 3.103 million a week earlier. The index of manufacturing activity fell to a Federal Reserve Bank of Philadelphia 1.3 in April from 2.0 previously. Meanwhile, the couple opened the day at 1.3028, 1.3095 and peaked completed trades in the 1.3070 area.

GBP/USD initially came under pressure at the exit of weaker than expected retail sales data, but managed to recover to the end of trading. Consumer demand on a monthly basis in line with forecasts, but the annual rate of disappointment, sending the pair from the opening level of 1.5233 to 1.5217 minimum. Then, the weak data from the United States and dynamics of EUR/USD recovery helped prices to a maximum of 1.5311, but the presentation by MPC with a hint of negative GDP in Q1 led to the correction of the pair in the area of ​​1.5270.

Amid all the dynamics of what is happening USD/JPY was not impressed, as the pair does not react to the news from Europe, data from the U.S. and even the positive performance of the trade balance of Japan. Opening the day at 98.10, the pair reached a high of 98.52 and closed trading around 98.20.

Forecast for Friday, April 19, 2013

Given yesterday’s malonasyschenny in terms of economic reports a day and now even more boring events calendar, you can pay attention to the fact, which did not cause much reaction in the market, but it can mean a lot. Spain yesterday held an auction of 10-year bonds, and they were sold to the lowest since September 2010 yield, and beating all forecasts on the volume. This means that in spite of the raging rumors about the fate of Cyprus and the likely prospects for Slovenia, as well as a lot of assumptions about what Madrid could be the next victim of the sovereign debt crisis, investors have confidence in the prospects of Spain. At least one less reason for concern. Or rather two — yesterday Bundestag approved a 10 billion euro in Cyprus under the rescue package.

But there is bad news. Italy not only can not decide on the prime minister, she now can not choose the president. It seems that only issues with the Pope they are solved more or less easily. While the market is ignoring the subject, but the longer the period confusion, so much the worse for the EUR.

Which began last meeting of G20 finance ministers will continue today, but we are unlikely to hear any comments on currencies. Officials can confirm that countries such as Japan should avoid «currency wars», but given that so many others in this seen, it is difficult to be formally accuse Japan only. Thus, specifically on Friday did not expect anything sverheststvennogo — most likely, the currency will hold the last trading day of the week within the narrow ranges.


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Market Review for April 18 | Web Trade For All - Forex trading, analytical reviews of the market and help for beginners