The European currency in anticipation of the long-awaited report on the US labor market nonfam payrolls did not miss the opportunity to improve their own price points. As a result of yesterday's EURUSD pair added 90 points and closed the day at 1.0956.
Demand for the euro rose after the index of business activity in Germany and the Eurozone services sector went better than expected. Optimism supported by traders and retail sales data in the framework of the currency bloc. As reported by the EU statistics office Eurostat retail in the euro area rose by 0.4% m / m in January to + 0.6% m / m in December - the highest since July last year. Experts forecast assumes an increase by only 0.1%.Of course, the index of retail sales is extremely important for investors because it is an important part of the total gross domestic product and indicates the level of consumer activity. Nevertheless, encouraging it is not necessary, the local statistics are not able to break the negative trend that is developing in relation to the index of consumer prices of the Eurozone. Recently, we have noted the negative values of inflation and came to the conclusion that the European Central Bank is unlikely to tolerate such risks and yet goes on additional stimulus measures at the next meeting. I think the first thing we hear about is a further reduction of interest rates on deposits, which can seriously weaken the position of the euro. Today, against the euro may come and statistics on the US labor market.
Recommendation of the EURUSD : the Sell the TP the SL 1,11 1.05
Pound, contrary to expectations, was able to hold above the 1.40 resistance and reached the level of 1.4172. In addition to the political risks associated with a potential yield of England from the integration of the European Union, against the British at any time and can play a national foundation. Published data on business activity in the service sector pointed out that this sector of the British economy is going through hard times. In particular, the PMI Markit / CIPS PMI in the UK services sector constituting 88% of the economy, showed the weakest gain since March 2013: 52.7 against the previous 55.6. Weak PMI indices clearly indicates the general economic slowdown in the first quarter of this year, which could put additional pressure on the pound.
Recommendation of GBPUSD : 1.3950 SellStop the TP the SL 1.35 1.41
The US currency waiting for data on the number of new jobs of non-agricultural sector. The long-awaited nonfarm payrolls will be released today at 16:30 GMT. Given the impressive increase in the ADP release, there is every reason to believe that the official statistics do not let you down. In addition to new jobs, even more support to the dollar could have earned board gains in the United States. Judging by the forecasts, progress is possible here. Strong economic data not only to disperse the yield of US Treasuries, but also strengthen the probability of potential changes in US monetary policy, which could be announced already at the March meeting.Recommendation of the USDJPY : BuyStop 115,00 125,00 the TP the SL 113.50
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