Market Analysis

Dynamics

U.S. dollar traded unevenly, but remained in the ranges against other currencies. At the same time EUR /USD pair was trading slightly below the 1.4600, the pair GBP /USD has remained above 1.5900, and the pair USD /CHF rose to 1.0400.

Japanese yen remained in the ranges against other currencies. When the pair USD /JPY was trading near the 90.00 mark, and the pair EUR /JPY consolidated above 131.00.

Commodity currencies retained position against the U.S. dollar. Thus, the pair AUD /USD restrain above 0.8700 marks, a pair NZD /USD was trading above 0.7100, and the pair USD /CAD was unable to gain a foothold above 1.0900.

Causes

The dollar got a short-term support after the data is U.S. consumer confidence index were significantly worse prognoses. This triggered a short-term drop in stock indexes and its strengthening. Nevertheless, the growth was not impressive, and soon the dollar returned to previous levels, whereas this morning with his decline continued.

What to expect?

The overall situation has not changed, and the dollar remains a tendency to decrease. At the same time, the disappointing data from the U.S. cast a shadow over the picture of economic recovery and force the market participants are increasingly turning to defensive strategies, ie redirect funds in assets-seekers, which include the U.S. dollar and Japanese yen. Ultimately this could lead to a reversal of trend in favor of the U.S. dollar.

At the same time, until the end of the week will appear a lot of macroeconomic data that could shake investor sentiment. In particular, today's final data are expected U.S. GDP in the II quarter, as well as report ADP /Macroeconomic Advisors Employment in the private sector of the U.S. in September. The latter is very important as it allows pre-assess the data of the official report of the Ministry of Labor, and the results of the publication, investors may begin to level position. In addition, will also be published index of business activity in the industry according to the Chicago Association of Managers, which may also have a very mixed impact on the market. In general, one can expect that if the indicators are weak U.S. dollar will get an additional stimulus to growth, while enabling the data will have pressure on it.

In the data from the United States today should pay attention to the latest employment figures in Germany, as wellas the preliminary consumer price index for the eurozone. Both are able to influence the position of the single currency.

Why worry?

stock market volatility, as well as unexpected news, may provoke a sharp fluctuations in major currency pairs.

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