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ANALYSIS

Market Analysis 23 April 2013

Bank of Canada Governor Mark Carney and Senior Deputy Governor Tiff Macklem show encouragement with the slower rate of household debt accumulation that the housing starts are slightly below demographic demand.  Canadian dollar strengthened against USD after domestic retail sales data for February rose by 0.8%.

Euro experienced a two-week low fall against USD after weak German PMI data and poor growth prospects, raising concerns about the status of euro zone economy. There is speculation that European Central Bank may cut interest rates.

New US homes sales rose in March, summing the best quarter for housing industry since 2008, suggesting the housing recovery to continue.

Chinese manufacturing growth encourages Yen to move higher. As investors seek safety during global economy uncertainty, Yen could take its cue from the upcoming batch of Japanese capital flows data due on Thursday/

 

EURUSD

 

EURUSD is expected to retrace the rebound from 1.2743, as the European officials struggle to address the risks associated with euro-zone.The pair is likely to continue to advance into bearish mode, after breaking through the support line at 1.3000 downward. Euro is riding high against USD for several weeks now, however most analysts think that the pair is in an overbought situation.

market analysis 23 April 13

 

GBPUSD

 

The market has turned bearish and there is more to come. The pair continues to show its inability to make any significant movements to the north.

 

EURJPY

 

After touching the supply level at 131.00 two weeks ago, the pair is unable to break it. The price dropped by more than 200 pips this week. Traders expect the pair to continue in current fashion.

 

USDJPY

 

The pair experience a significant fall last week, reaching 95 level, but managed to reverse towards 99.50 after G20 speech. Resistance stands at 100.00 with support at 98.55. This week Bank of Japan is expected to release the outlook report and decision regarding interest rates. 100.00 continues to be a psychological ceiling for the pair, however the declines for yen suggest the selling trend is likely to persist.