The euro traded slightly lower against the background data on the Eurozone trade balance. Eurozone trade surplus was seasonally adjusted and rose less than was expected in March - up to € 15, 2 billion to € 15 billion in February, while the projected increase to € 17, 3 billion in exports and imports fell at the 2013 first quarter end.
The dollar traded with little change to major currencies strengthened against the Swiss franc, New Zealand dollar and the euro, but decreased to the Canadian dollar and the British pound. Building Permits and Housing Starts increased significantly last month, as the adverse winter recovery sign.
1.3650 level is intermediate barrier to downward movement. By the way, we do not observe any catalysts promoting its overcome.
Perhaps the bullish corrective movement will be continued. The growth potential targets are 1.3785 and 1.3815.
In case of decreasing the pair will go towards 1.3560.
The pressure on the British pound was exerted by a Bank of England Chairman Mark Carney speech, during which he commented that the UK economy remained weak. Such comments make it clear to investors that interest rates could remain at historically low 0.50 level per cent for a long time, thus likely that any rates increase will be gradual.
The pound/dollar pair is poised for a strong fall this week.
At this stage, the 1.6730 level which has not let bulls to buy up for almost three months and available rising trendline is its reliable support.
We can expect that a downward correction will last to 1.6600.
If the British currency growth the bulls’ goals will be 1.68625 and 1.6900.
Yen continues to strengthen against the dollar and is likely to close the week higher for the first time in the last three months, against the world largest economies weakness which has led to increased demand for safe haven. Federal Reserve Chairman Janet Yellen said the U.S. economy still had a long way to go before it reaches full recovery.
The published inflation and the labor market negative data in the United States helped the dollar to fall against the yen.
Currently the pair is located near the 101.20 resistance. Uptrend may end if breakdown will occur at this level.
The bearish sentiment may grow again. The pair needs to consolidate under 101.20 to continue a downtrend. This opens the way to 100.85 and 100.40 marks.