EUR/usd
Stock markets continued to fall yesterday and managed to stabilize only in the second half of the US session. Bulls were too weak to perform a proper bounce, but the consolidation going on now is already positive in itself. Once again let's note that Forex is very touchy with regard to new trends and changes in the old ones. So, yesterday's fluctuations in eurusd at the beginning of trade were relatively small. The daily low was set at 1.3057, but at the same time it is clearly seen that the pair was supported on triggering large buy orders. As a result, the pair hit its 200-day MA, but didn't go below it, which significantly increases chances of further growth. But it is too early to celebrate the victory as the main battle is still ahead. Europe, to be more exact Germany, didn't manage to surprise with the rise of business sentiment. The Ifo index published yesterday came out within the expected range, showing growth by 0.2 points to 105.9. At the same time the Current Assessment proved to be a bit worse than forecasted, but expectations – a bit better. Today the relative silence with regard to European statistics will change into the publication of Durable Goods Orders, Consumer Confidence and New Home Sales in the USA. And while the former should deviate much from the forecasts to stir the market ,the latter two are able to give rise to fluctuations both in Forex and stock exchanges. Now it is expected that the annual rate of new home sales will grow by 1.3% and hit a new multi-year high (since 2008). It is also supposed that the Consumer Confidence will demonstrate a slight correction after the strong growth in the previous month.
GBP/USD
Albeit little by little, but the favourable statistics of Britain let the sterling feel a bit better than the euro in the periods of lull in Forex. Thus, yesterday EURGBP managed to fall below 0.85, where it keeps consolidating now. Yet, the cable (USDGBP) managed to grow by over a figure from the daily lows: from 1.5340 to 1.5465. The markets are waiting that Carney, who doesn't have any political ambitions in the country, will manage to put it on the way to prosperity. Today the Bank of England, still under the chairmanship of King, will be defending its May inflation forecasts before the Parliament.
USD/CAD
The Loonie has stabilized above 1.05 after a dizzy rally last week. Just last Monday the pair was trading at 1.0150, and on the highs of yesterday the pair reached 1.0550. This is almost a two-year high. Taking into account rather unimpressive performance of the Loonie and of the Canadian economy in general, probably Carney is not so good as believed, what do you think?
EUR/CHF
Speaking further about weakness of the single currency, we can't but mention EURCHF. For about a month it has been in the phase of decline, though having gone quite high before that. Thus, yesterday's decrease to 1.2217 returned the pair to the lows of the beginning of May. Will the pair be able to break through its 200-day MA , which is now at 1.2212, we wonder? Yet, don't forget that in this case the potential of decline will be quite limited. It's more probable that the pair will turn for growth in the near future.
