The Dollar started the week with a sharp rise during the Asian session on Monday, April 23rd, but then again came under pressure on the expectations of the next meeting’s outcome of the Federal Open Market Committee of the U.S. Federal Reserve. Moreover, Mr. Bernanke’s press conference, where he hinted that the further easing is not currently considered, even more weakened the U.S. dollar’s positions. The USDX Dollar index, which is the ratio of the U.S. currency to a basket of six major world currencies, lost 0.7% closer to the closing of the week. The Dollar’s positions also weakened because of the unpleasant negative “surprise” in terms of the GDP growth for the first quarter.
After falling to the mark of 1.3100 on Monday morning, the EUR/USD pair formed a strong upward momentum to the area of 1.3235, taking advantage of the weakening Dollar on the entire market. It never finished the week in an attempt to overcome this mark.
Once again the British pound strengthened its positions after the protocols publication of the last meeting of the Bank of England. The members of the Monetary Policy Committee expressed concern about low rates of inflationary pressure reducement since the beginning of the year. In their rhetoric, one could see raising fears about the stability of inflation expectations, and this is quite a serious problem for the central bank. If inflation starts showing signs of stabilizing at the current high level, they will discuss the possibility of an early ceasing of quantitative easing. Due to the described situation, the GBP/USD pair felt very confident and was able to form a steady upward trend, breaking the annual highs and reaching the mark of 1.6265.
The Australian dollar gradually “comes alive” and tries to return to the growth. The published data on production and consumer price inflation (on April 23rd and 24th) turned out to be quite negative for it, giving the Reserve Bank of Australia a spot for reducement of the discount rate at which it hinted at the end of the last meeting. Thus, the AUD/USD pair re-tested the support of 1.0255, but failed to develop a downward movement and immediately formed an uptrend to a level of 1.0465, taking advantage of the weakening Dollar. The New Zealand dollar continued fluctuations in the area of 0.8060-0.8280.
The Japanese yen returned to the growth after the scale of expanding of the quantitative easing turned out to be not as significant as suggested by the market participants. Towards the end of the week, the USD/JPY pair tested the two-month lows in the area of 80.30.
Review of Megadroid’s trades for the week 12.03.2012-16.03.2012
|2012.04.24 23:43||S1 sell||1.31973||2012.04.25 00:45||1.31924||4.9 pip.|
|2012.04.25 00:09||S2 sell||1.31975||2012.04.25 02:03||1.31974||0.1 pip.|
|2012.04.26 23:59||S1 buy||1.32272||2012.04.27 09:19||1.31652||-62 pip.|
|2012.04.27 00:13||S2 buy||1.32079||2012.04.27 03:40||1.32080||0.1 pip.|
|2012.04.27 00:05||S1 buy||1.32274||2012.04.27 10:02||1.31582||-69.2 pip.|
|2012.04.27 00:13||S2 buy||1.32110||2012.04.27 03:44||1.32104||-0.6 pip.|
|2012.04.24 23:43||S1 sell||1.31957||2012.04.25 00:45||1.31959||-0.2 pip.|
|2012.04.26 23:58||S1 buy||1.32261||2012.04.27 09:19||1.31625||-63.6 pip.|
|2012.04.27 00:13||S2 buy||1.32090||2012.04.27 03:44||1.32093||0.3 pip.|