The Euro exchange rate strengthened yesterday on the positive statements by the ECB representatives | IFCM
IFC Markets Online CFD Broker

The Euro exchange rate strengthened yesterday on the positive statements by the ECB representatives - 29.4.2014

Yesterday the U.S. Dollar Index (USDIDX) continued to move in a neutral trend, despite the good economic performance of the American secondary real estate market in March. The index of pending transactions grew by 3.4%. This is more than expected. However, compared with March of the last year, there is still a decline of 7.9% observed. This indicator helps to predict for real estate sales in the secondary market in 1-2 months. Recall that the U.S. real estate secondary sales in March have fallen to the lowest point of two and a half years. In fact, it stopped the uptrend of the U.S. Dollar Index. Today at 15-00 CET, we will find out about consumer confidence index in the United States for April. In our opinion, the preliminary forecast is positive for the U.S. Dollar.

The Euro exchange rate strengthened due to positive statements made by the ECB representatives. It looks like a growth, on the EURUSD chart. The ECB President, Mario Draghi during his visit to Germany, said that the CB is still far from implementing the QE program, despite the low inflation. The Vice President of the ECB, Vittorio Constancio said that tomorrow's inflation data in the EU will not be the only trigger for changes in the monetary policy. Market participants decided that the ECB has no plans to start printing banknotes. This contributed to the single currency strengthening. The most important economic information in the EZ for today is the inflation data in Germany for April 13-00 CET. It is expected to grow, and that may reduce the probability of "running the printing press of the ECB" and strengthen the Euro. In addition, there will be business confidence indices on various economic sectors of the EZ, which could increase the EUR volatility.



The Japanese Yen weakened slightly before tomorrow's BOJ meeting and the upcoming significant economic information. It looks like a growth on the USDJPY chart. Note that there is a holiday in Japan today and part of the trading fields are closed. These data will come out tomorrow night within 00-15 to 1-00 CET . Most of market participants believe that the BOJ will leave the basic parameters of its monetary policy unchanged. The Yen may be affected The BOJ economic outlook, as well as the data on industrial production for March and the PMI for April may affect the Yen. Afterwards, tomorrow at 6-00 CET we will see more information on the Japanese real estate market. In our opinion, the preliminary forecasts have versatile nature.

The Pound (GBPUSD) strengthened this morning on anticipation of good indicators for the GDP growth in the first quarter, which will be released at 9:30 CET. Note that the Bank of England Governor, Mark Carney said that the labor market remains weak on the background of economic recovery. This can help to maintain low interest rates the next year. In our opinion, this statement may be a negative factor and limit further growth of the GBP.



The Aussie (AUDUSD) and the New Zealand Dollar (NZDUSD) fell to lows in a month due to the possible economic slowdown of their main trading partner - China. Recall that next important economic data for these currencies will be released on Thursday (industrial China PMI) and Friday.

The Fcattle rose after the negotiations on cutting the import duties for food supply from the U.S. to Japan were ended. In fact, it means opening the Japanese market for American farmers. Consumers expect the increase in global demand for meat.

The Corn prices continued to increase. Their growth over the last month may be the highest since 2010. According to the U.S. Department of Agriculture (USDA), the U.S. farmers planted 27,19% of the area under maize in April. This is below the average level of five years, which is 28% of the planned areas. Planting corn this year is prevented by the cold and rainy weather in the U.S. Midwest.



The Wheat comes cheaper today, as Western sanctions have not affected its exports from Russia yet. Ukrainian farmers planted 56% of the area under wheat for this year on April 28, despite the difficult political situation. Last year Ukraine has collected 63 million tons of grain. This year's harvest is expected to amount to 55 million tons due to worsening weather conditions. Besides it the reducing of the world prices is happening due to the government decision to increase the Argentine wheat exports this year by 500 thousand tons to 1.5 million tons. The grain yield in the country is expected to be at 9.2 million tons.
IFCM Trading Academy - New era in Forex education
Pass Your Course:
  • Get Certificate
trading academy

See Also

image
Follow the Market with Our Live Tools and Calendars
Close support
Call to Skype Call to WhatsApp Call to telegram Call Back Call to messenger