View Single Post
Old 04-02-2014, 07:14
VolkovYuriy's Avatar
VolkovYuriy VolkovYuriy is offline
Level IV Lasers Member
Join Date: Dec 2013
Posts: 343
Default re: FreshForex -

How exactly is ECB going to tackle inflation?
Review of the past week

The last trading week of January was marked by consolidation of US dollar against the most part of its competitors. Core event of the week was Fed's meeting where FOMC members unanimously voted for continuation of QE-3 tapering. Besides, Ben Bernanke for whom it was the last chaired meeting stated that the economy will moderately grow and the recovery of labor market is expected to continue as well. Tapering of stimulative measures is negative for all risk assets.

On Friday 31, European preliminary inflation data was released. CPI was below expectations and is based on the level of 0.7% signifying that threat of deflation for the European economy is still vital. EUR/USD has been under pressure over the entire week and closed trades at the point of 1.3486.

Great Britain published GDP for the 4rd quarter of the previous year. The index is 0.7% and such value met expectations of market players. While speaking on Jan 29, BoE governor Mark Carney confirmed the regulator's unwillingness to raise interest rate within the nearest time, even if unemployment reaches target level. FOMC's decision to cut stimulative measures for 10 bln USD from Feb 1 was negative for British currency. Following to Fed's meeting, pressure on GBP/USD grew and trading week was closed on the level of 1.6438.

According to the last week's results, Japanese yen showed a symbolic growth in 0.2%. Positive stats on retails and inflation in Japan supported yen's quotations. Decline of Nikkei 225 stock index futures also played in bulls' hand. Nevertheless, we did not witness a significant consolidation of Japanese currency. A long-term ascending trend for USD/JPY is still in effect and one can see investors opening long positions after each strong decline. Trading week finished just above 102, on the point of102.02.

Forecast for the week February 3 7
Reply With Quote