EUR/usd
On Tuesday the single currency stalled on the way to 1.31. Thanks to other instruments the US currency strengthened its positions a little bit. Anyway, the dollar index (DXY) is moving away from its extremums, which it reached at the end of the previous month. Yesterday it was by 2.5% below the highs, hit on May 23. We have more and more doubts that the dollar will resume growing in the near future. For about a year the index has been in the uptrend, yet the latter has been running in waves. We should take into consideration that another tide of growth subsided at the end of May. There are about 4% between the current levels and the support line of this trend. To eurusd it promises possible growth to 1.36, which corresponds to the highs of late January. The dollar is getting weaker against the background of poorer economic statistics from the USA and less frightening statistics from Europe. It was very clearly seen on Monday, when Manufacturing PMIs for Europe and the USA were released. This tendency may be confirmed or refuted by today's statistics, that is Services PMI. The USA is expected to demonstrate growth here. Apparently these hopes are based on strong consumer confidence statistics. For Europe it will be enough to save face by demonstrating no further decline – this will be already regarded as good news. The fact that the single currency is now above its 200-day MA can be in bulls' favour in this case.
GBP/USD
Yesterday the British pound was in a slight correction after the heavy growth of Monday and today it again looks ready for an attack. Unlike the euro zone, Britain's services sector has been growing since the beginning of the year and May is expected to have brought increase in business activity. Fundamentally, there are more reasons to buy the sterling than stake on the euro, yet there was a lot of negative news regarding the single currency before. In this connection, once news from Europe stopped being terrible, EURGBP started growing.
USD/JPY
Apart from weakness of the dollar, there is also another important topic – weakening of stock exchanges. The Asian markets, except for Japan, have declined to the lowest levels this year due to vigilance of investors. Very often the Asian markets are the first to fall as investors from the developed countries, first of all, get rid of less reliable investments. This risk-aversion temporarily supports the yen. usdjpy didn't manage to consolidate above 100. This morning it has again dropped to 99.40.
AUD/USD
Australian news keeps contributing to weakness of the aussie. Vigilance of Asian players also puts pressure on the Australian currency. Yesterday audusd returned to 0.9650 and today it is already trying to settle down below 0.96. Now the pair is just 60 pips away from the local low of 0.9520. And lower there are only lows of 2011 at 0.9387.
