The euro partially tried to recover its position. The pair got under pressure after the American statistics significant block release.
The US data showed that the durable goods orders volume increased by 2.8% in January after the December decrease by 3.7%. The forecasted medians assumed that the rate would be able to strengthen by 1.7%. These positive factors: the indicator growth has been seen for three months the first time and even if there is a correction to the previous value, the index increase stabilized the US dollar position.
Be advised to short with the first target of 1.1100-1.1120. After overcoming the first target, the shorts will be relevant to 1.0980-1.1000.
The pound was closed with a sharp decline after the large demand for the dollar in reaction to the US stronger than expected core consumer price index release. The pair euro/dollar sales followed in the market forefront and allowed the pair to expand its lows. We expected the dollar strong sales, but it did not happen and the market was caught off guard by the US dollar sharp increase.
We recommend to short with the target of 1.5395-1.5415. The second target is 1.5330-1.5350.
The Japan statistics was mixed. The consumer price index remained at the level of 2.4%. But the unemployment rate rose up to 3.6% from 3.4% the previous month and the forecast remained at the same level. The retail sales came out worse than expected – the index fell by 1.3% m/m vs. -0.4% m/m. The industrial production data pleased investors. The indicator increased by 4% on a month basis while it was expected an increase by 2.9%. In general, we can say that the measures taken by the Bank of Japan show their results, but there cannot be still any questions about the incentives closing. The pair will be influenced by the US data in the short term: the revised GDP for the fourth quarter and the consumer confidence by the University of Michigan.
We recommend to sell with the first target of 117.95-118.15. If the first target is overcome, the new target is the level of 116.95-117.15.