The USA dollar keeps growing | 12 December 2014

Euro

The ECB left its key interest rate unchanged at the record low the last Thursday, strengthening its position that presupposes that the cost of borrowing cannot be reduced even more. It has led to the euro buying against the US dollar that until then updated other annual lows.

According to the US Labor Department, the number of initial jobless claims grew from 23K to 29K November 2014 decreased by 17,000 and amounted 297 000. The economists forecast that the number of initial jobless claims for the reporting week amounted 295 thousand.

Trading recommendations

We advise to short with the first target – 1.2250-1.2270. After fixing below the first target, the level 1.2180-1.2200 will become the next one.

Pound

All the expected interest rate data by the Bank of England only aroused the traders’ doubts about the future pounds’ growth perspectives. The United Kingdom Central Bank stated that the Monetary Policy Committee decided to leave the rate at the minimum of 0.5% and save the bond purchases program in the amount of 375 billion pounds.

The pair GBP/USD continues to trade with the negative sentiment. If the fundamental background is negative, it is possible the further British pound decline.

We do not expect the UK important statistics this week.

Trading recommendations

We advise to short with the first target – 1.5510-1.5530. After fixing below the first target, the level 1.5460-1.5480 will become the next one.

Yen

During the trades the US dollar rose to 121.40 against the yen at the end of the last week.

The yen weakening was caused by the forecasts that the coalition led by the Prime Minister Shinzo Abe would win a landslide victory in elections to the lower house of parliament on December 14 which will allow him to continue "Abenomics" - the policy aimed at the economic growth acceleration.

The dollar rose above 120 yen for the first time since July 2007, the yen fell by more than 15% against the dollar since June 30, 2014.

Trading recommendations

We advise to consider long positions with the first target – 122.40-122.60. After fixing above the first target, the level 123.10-123.30.