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EUR/USD ends the week over 1.33, JPY was able to increase profit

The pair EUR / USD ended trading this week over the level of 1.3300. Once in the past week much evidence points that the USD could go into a bullish trend, due to the increase speculation that the evidence could condense that the Fed will officially reduce the bond purchases in September. These speculations were but pulled last Friday in strong doubt after the data were released to the U.S. labor market. Although the unemployment rate fell from 7.6% to 7.4%, but all other published data were sobering. Significantly fewer new jobs in the non-farm sector were created like the forecasts said before. In addition, lots of the the new jobs, at a closer look, for the most part to poorly paid and to temporary or part-time jobs. This is also reflected in the average earnings, which declined by 0.1%. Because this week only a small number of economic data from the United States have been published, and, apart from the statements of the Fed board member Charles Evans, no further information was known that the Fed might next month actually reduce their purchases, there were increasing doubts about the reliability of speculation, which is reflected in the most losses of the USD in the last 3 weeks. On Friday, the USD was posted slight gains again, which is to lead but also partly on profit-taking ahead of the weekend back.

Currently the pair EUR/USD is at 1.3338, a decline of 0.31% and the GBP/USD at 1.5510, a minus of 0.17%. The yen, however, could also today reported an increase against the USD and the USD / JPY is currently at 96.425, which represents a decrease of 0.29%.

The Japanese yen has strengthened its course in the past week clearly against the other major currencies. For this, the BOJ meeting this week, where the monetary policy was set, contributed their part. The Yinssatz has not changed and it was not decided that the measures to support the Japanese Economy to decline. But it has been made clear that the Japanese economy is on a steady course, which is not least due to the exports, which beneficiary by the weak currency, and other, new measures by the BOJ are not provided in the future. Whether the JPY could hold his bullish course, this could already point to the beginning of next week, when the data for the Japanese GDP in the last quarter and the monthly industrial production figures will be published.

Risk Warning / Disclaimer
The opinions of the author to market behavior do not constitute a solicitation to buy or sell any financial products, but are merely a personal opinion. When you go into the trade in leveraged financial products, you must be aware that a loss up to the amount of your deposit and in addition, can also be an obligation to arise. Make yourself familiar with the active trade or get independent advice before you invest your own money and use only invest money that you can get over the worst case.

Yen to 7-week high before BOJ-Meeting, GBP gains

The Japanese Yen has reached its highest level in the last 7 weeks before the beginning of the two-day BOJ-Meeting today. The new investor confidence in the JPY is based on the assumption that the BOJ will decide at its meeting no further measures to support the Japanese economy. Since the beginning of the economic measures by the BOJ the yen weakend by about 11%. The BOJ purchases government bonds this time of a monthly amount of 72 billion dollars. Due to the current economic situation, in which the exports benefit from a weak yen is likely to fail on an extension of the purchases. The yen against the U.S. dollar could increase by 0.95% and currently stands at 96.80. The increase to EUR is currently 1.06% with a rate of 128.66.

The GBP was strong, make up ground after today's inflation report from the BOE.It is becoming apparent that the UK economy is now back on fairly stable feet, as well as yesterday's data of the industrial production in the United Kingdom showed. The pound was up against the USD currently at 0.92%, with a current rate of 1.45498. The profit against the EUR is currently 0.89% with a rate of 0.8592. Only against the yen, the British pound had slightly losses of 0.17%, with a current price of 149.74, accept.

Fed Board Member Evans called reduction of the bond purchases this year "quite likely"!

The Fed board member Charles Evans, president of the Chicago Fed, commented to journalists that a reduction of purchases of bonds this year is very likely. "We are quite likely to reduce the flow of purchases rate starting later this year - I couldn't tell you exactly which month that will be - and it's likely to wind down over time in a couple or few stages" Evans said. On the question of whether a restriction is made in the next month, Evans said that he could not say "clearly" this. But He is the third official of the Fed within two days, which suggests a reduction in September this way. The next meeting of the Fed, on which the purchases will be discussed, will be held on 17 and 18 September.

Among the short-term interest rates by the U.S. Federal Evans said that this will continue to remain at their current levels near 0% until the U.S. unemployment rate reached 6.5%, which he expects to end of the first half of 2015. This period could be shorter, however, if economic growth increases unexpectedly strong and reached 3.5%. Furthermore, Evans said that this period could be extended further if inflation does not reach the target of the Fed's target of 2%.

More information about a reduction of purchases could supply the speech of Fed Chairman Ben S. Bernanke on Wednesday at 14:30 h (GMT -5).

Little movement in the market, EUR benefits of German Factory Orders

The forex trading today is characterized by its small movement. Only the EUR could profit of today's data on the German Factory Orders and rose against most of its counterparts. The German Factory Orders increased by 3.8%, and exceeded forecasts by 2.8%. The euro rose against the U.S. dollar at current 0.37% and currently stands at 1.3307 and tries to hold the 1.3300 mark. Whether he can continuously exceed will depend, among other things, on the willingness of the Fed is rated for a speedy reduction of bond purchases. Further evidence of this could be this evening, the president of the Chicago Fed's Charles Evans, deliver a speech about the economic forecast on the Futures & Options Expo in Chicago.

The AUD was able to benefit from the rate cut by the RBA today. Investors will probably assume that could be a revival of the Australian economy through the reduction from 2.75% to 2.50%, which the AUD increases its value in the long term. Currently, the pair AUD / USD recorded a growth of 0.27% and stands at 0.8953.

Data from the euro zone can not convince, GBP increases.

The data released today from the euro zone could not convince investors and led to losses of EUR. Although they slightly exceeded the forecasts, the data were to the Purchasing Managers Indexes almost all of the important mark of 50 points. Only the German service sector purchasing managers' index was at 51.3 points, but it was 1.2 points below the forecast and thus was more of a negative signal. The EUR fell in most pairs during the morning. The pair EUR/USD is currently at 1.3266 a loss of 0.1%, EUR/JPY currently recorded a loss of 0.61% and stands at 130.62.

The GBP benefited from data of the Services Purchasing Managers' Index in the United Kingdom. This far exceeded the forecast of 57.2 points with a value of 60.2 points. As a consequence, the GBP has expanded in all GBP pairs. Against the EUR, the increase in the GBP is currently 0.50% with a rate of 0.8642. The GBP/USD pair rose by 0.37% and currently stands at 1.5248.

Risk Warning / Disclaimer

The opinions of the author to market behavior do not constitute a solicitation to buy or sell any financial products, but are merely a personal opinion. When you go into the trade in leveraged financial products, you must be aware that a loss up to the amount of your deposit and in addition, can also be an obligation to arise. Make yourself familiar with the active trade or get independent advice before you invest your own money and use only invest money that you can get over the worst case.