EUR/usd
Yesterday bulls and bears were again measuring their strength against each other, trying to budge EURUSD. Either the parties were equally strong or they were not willing to continue the fight, but after a steep drop the pair in a while returned to the previous levels. Impertinence of bears showed itself when they intensified their pressure on the euro right after the release of relatively good news from Germany. The Ifo statistics indicated growth of the Business Climate Index to the highest level over the last 16 months and, therefore, exceeded expectations. In August the index has risen to 107.5 against the forecasted 107.1 and the preceding rate of 106.2. Besides, Current Assessment and Expectations have also grown. And against such good news bears were attacking the euro, trying to push the pair down to 1.3385. They managed to lead the pair down to the low of 1.3320, but soon trading consolidated at 1.3340 and held there right till the beginning of the active US session. Then euro-dollar bulls counterbalanced the earlier impudence of bears. The annual rate of S&P Home Price Index went much beyond the expectations in June, having grown by 12.1% against the previous year. The index has been stabilizing at this level for about three months already. And this is one of the reasons for the Fed to provide less support to the housing sector. A bit later Conference Board published its estimate of consumer confidence in August. This index has remained high for three months after the big growth, unwilling to correct. Despite the factors which stand for the stimulus rollback, the market reacted by selling of the dollar. EURUSD returned to 1.3385 and even made another attempt to attack 1.3400. Today the pair remains close to this level, but the market itself looks rather insidious, being trendless and moving against news.
GBP/USD
There is still no important macroeconomic news for Britain, but today the sterling will have to undergo another important test. Carney will give his first public speech as Governor of the Bank of England. It is expected that he will speak before representatives of business, assuring in the firmness of his intentions to maintain low interest rates and stick to the stimulus policy. Of course, just like in the commentary to the rate decision or inflation report, there will be probably made lots of reservations and pointed out lots of conditions under which the policy can be preserved – all this can reduce pressure on the sterling. So, we only should wait for the speech and see if Carney will be able to pressurize the pound as much as King in the previous years.
USD/JPY
The yen is in demand. usdjpy is falling from the resistance level indicated in our yesterday's review and has already managed to go below last week's lows (96.87). The next support is at 96.0, where the pair was purchased two and a half weeks ago. From the fundamental viewpoint the pair is affected by the geopolitical instability, caused by Syria, and by investors' cautiousness in regard to other Asian economies resulting from the slowdown in China.
AUD/USD
The aussie's modest attempts to catch at 0.90 yesterday were not crowned with success. This morning the pair is being pushed lower. By now the daily low has been set at 0.8900, which is the lowest level since the beginning of August. Even growth of Gold, which correlates with the Aussie, doesn't help the currency. Probably, in the coming days the August lows (0.8855) will be tested. And farther, as has been mentioned, is vacuum.
