EUR/usd
Set free, that is outside the narrow trading range, the single currency entered the period of high volatility. At the end of Monday the pair soared to 1.3380, but already by the beginning of the EU session it had returned to the preceding levels. The reason for that was draghi's determination to apply non-traditional monetary policy measures, which he expressed at the conference in Israel. The pair plunged to 1.3325, but was supported by the bulls and managed to set new daily highs. It's an interesting case. The ZEW Economic Sentiment came out slightly above expectations, but the pair was already too weak to continue the rally and was gradually slipping down. The release of the US statistics aroused unexpectedly strong reaction in the market. The surprising thing here is that the data were very close to the forecasted rates. The number of building permits decreased by 3.1% annually after a spurt in April, when growth amounted to 12.9%. Housing starts, on the contrary, grew in number after a serious decline a month before. Actually, the sharp fluctuations of these indicators were causing certain nervousness among the players, but on the whole the market remained within the existing trend, that is systematic purchasing of the euro. Closer to the end of trading on Tuesday the pair rose above 1.34 for a while, though now it is trading slightly below this level. The Fed's commentary is unlikely to bring any interesting news, but the very fact that this risk no longer exists may let the players move more actively within the trend.
GBP/USD
Though there is no bad news for Britain, the sterling is not in demand. Apparently, traders now expect that the new BOE chief Carney will start to actively soften the policy. It's very optimistic, but it's difficult to find another excuse for weakness of the pound, where consumer inflation proves to be beyond the expected rates ( an argument in hawks' favour). Also we do remember quite favourable statistics on employment and a return of all three economic sectors (manufacture, services, construction) into the growth zone according to PMIs. All that was not enough to keep the pound from selling. Unlike the euro, the pound failed to restore after the drop in the middle of the day. Now it is trading at 1.5640 against Monday's high at 1.5750. If it is the start of a full-scale correction of the growth from 1.50, hold the pair 2 more figures below the current levels (1.5450).
USD/JPY
The yen sellers were very cautious. All the speculators, who staked on growth, were killed by a market move from 103.70 to 93.70 in the preceding 4 weeks. Probably, the pair will resume growing again, but it's hard to say whether it will manage to break through 100 yens/dollar in the coming weeks. This is possible only if the dollar is weak.
gold
Pay attention to Gold. Yesterday it again lost over 20$ and came closer to last month's lows. Don't hurry to purchase the metal as the bears may try again to push it down from the current 1366$/ounce to 1340. This may happen in one day.
