During yesterday's trading session the US Dollar declined by 62% against the common European currency and 0,84% against the Swiss Franc. At the same time, the American currency was down against the Japanese Yen and the British Pound by 0,7% and 0,38% respectively. The only loser against the US Dollar was the Aussie, which allowed the USD to gain 0,79% against it.
The US stock market was also down in advance of the American trading session. The futures on S&P500 lost 0,69% since the opening. Meanwhile, the US Dollar index is at its 2-year low at 80,245.
Analysts say that the US Dollar started weakening long before the macroeconomic reported published recently. The reason for the current weakness of the American currency is believed to be the fact that traders and investors are currently taking profits and reducing exposure in advance of retail sales figures, which are expected to be weaker than expected.
At the same time, extra pressure is caused by the expectations that the Fed will need more data confirming economic slowdown in order to suspend the tapering of its monetary stimuli.
At this point, we know the following figures:
The amount of jobless claims made during the period of February 2nd through 8th is equal to 339 000 against expected 330K.
The amount of jobless claims made during the period of February 2nd through 8th is equal to 339 000 against expected 330K.
The retail sales index (excluding autos) hasn't changed since December 2013.
The retail sales index (including autos) has dropped by 0,4% since December 2013.
USD is down against EUR, Masterforex-V Academy reports. The H4 chart of EUR/USD indicates that the big-scale downtrend isn't over yet. The reversal may take place if the price breaks and consolidates above 1,3694. If this is the case, the rally may well hit the 1,3738 high.
Until the MF pivot proves unbroken, there is a chance to see the price resuming the downtrend after the current recovery made by EUR/USD. In this case we may expect the price to reach 1,3637 or even 1,3567.
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