The EUR keeps strengthening to the Dollar | 31 Outubro 2014

Euro

The euro rose against the dollar on Friday. It was supported by the Germany’s consumer climate optimistic data, although the US jobless claims released on Thursday, continue to stimulate the dollar demand.

The dollar was supported by technical factors, the USA economy news as well as the US inflation dynamics statistics expectations. After the recent Fed minutes which indicated the negative effects from the dollar revaluation traders again tried to correct the greenback.

Trading recommendations

We advise to short with the first target - 1.2580. After fixing below the first target, the level 1.2500 will become the next one.

Pound

The UK retail sales fell in September less than it was expected -0.3% m/m and + 2.7% y/y after + 0.4% m/m, + 3.9% y/y in August as it was expected-0.5% m/m + 2.5% g/g. According to the Bank Association (BBA) the mortgage lending declined in September - approved loans was less than it was expected- 39.3 thousand against 41.4 thousand.

The pair remained under pressure. The pressure was caused by the investor's negative sentiment due to compression of inflationary pressures in the UK. Quotes rapidly reached the level of 1.5940, and then the pound managed to regain its position.

Trading recommendations

We advise to short with the first target - 1.6040. After fixing below the first target, the level 1.5960 will become the next one.

Yen

The yen rose to a two-week low against the dollar amid the US falling stock index futures after the first case of Ebola in New York. The Committee meeting for the Federal Open Market work will be held on Tuesday and Wednesday, and according to most analysts the Central Bank will announce the bond buying program completion.

According to the Bank of Japan the slower inflation is likely to be below 1 %.

Trading recommendations

We advise to long with the target - 108.40. After fixing above the first target, the level 109.00 will become the next one.