The majority of currencies showed the growth by the end of Tuesday. The U.S. dollar continues to lose ground. Mostly market fluctuations happen under the influence of the economic data and financial news. Comments on monetary policy of the U.S. made by the Federal Reserve System officials make us to reconsider the possibility for the purchase of assets volume reduction. Many members, such as Head of the Federal Reserve Bank of New York William Dudley and Head of the Federal Reserve Bank of Philadelphia Charles Plosser, noted the improvement of the overall economic situation, where the labor market is the most reliable which is recovering step by step. Without any doubt this situation indicates that the cease of the QE program could begun earlier than it was expected by the majority of analysts - in the first six months of 2014.
In regard with the situation which is described above, dollar experiences difficulties; American currency is under strong pressure, due to the concerns about the earlier reducing of the asset purchase. At the beginning of the European session, the currency pair EUR/USD was at 1.3500, the Euros’ bounce allowed the pair to reach 1.3540. After the negative data on the business community circumstances was published, the pair fall down to less than 1.3500. The pair EUR/USD started to grow intensively after the Vitor Konstacio, the deputy of the president of European Central Bank, statement on the possibility for achieving economic growth by American means that is by purchasing of obligations by European Central Bank.
Analyzing technically the pair EUR/USD it is worth to note that the pair withdrawn from the ascending triangle trough classic way, that is by braking of the base. The goal is to reach 1.3600, however, the Euros’ growth recovered almost 50 % from the last decline from 1.3800, that is why there is a possibility for correction process beginning. The support zone lies between 1.3440 and 1.3520. At the moment, after the sharp growth during the Asian session, the pair plummets to the triangle base due to the negative data on the level of inflation in Germany. Despite of the experts predictions, the rate fall by 0,2 % instead of the expected growth by 0,1 %. New purchase of European currency contrary to dollar can start at 1.3520.
In the evening the market members will keep an eye on the data of the American news block. Particularly, these news include the level of retail sales, Consumer Price Index as well as the information on the real estate sales on the secondary market. Later the protocols of FRS will be published.Social button for Joomla