Forex Trading Daily Updates

The U.S. house prices missed slightly analyst expectations but the broader U.S housing markets looks in a considerably better condition than it was a year ago. Both reports added more credence to the view that softness seen earlier this year was related to inclement weather and not economic weakness.

A positive note seen at the start of the trading week with over 1% gain in most of the Asian exchanges despite a weaker than expected Chinese flash manufacturing PMI that fell to an 8 month low on March. The PMI data for March fell to 48.1, compared with a forecast of 48.7 and to a final of 48.5 for the previous month. A figure below 50 implies contraction with the latest number part of a string of disappointing China data suggesting a deepening economic slowdown at the start of 2014. The Asian session seen disregards this latest data as well as earlier concerns seen last Friday following fresh sanctions on Russia and increase fears that a diplomatic solution is getting farther away. On Friday, Russia completed its annexation of Crimea, which voted last week to join its eastern neighbor and break ties with Ukraine. The European Union and the U.S. didn’t stay shay and intensified their sanctions against Russian President Vladimir Putin and his allies to pressure his government to defuse the global standoff over Ukraine. Other Western nations also added new names to their lists of Russians and Ukrainians punished with asset freezes and travel bans. The tension over Ukraine between Russia and the west is expected to continue and dominant the headlines in the upcoming week. The Precious metals posted their worst weekly loss in four months following the Fed Chairman Yellen decision to taper its monthly bond-buying program by $10 billion for the third consecutive meeting and amid indications a rate hike from the central bank could come sooner than expected.

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On Wednesday the markets were hot. In the first part of the day the Euro was trading in the narrow range in anticipation of the results of 2 day meeting of the USA FRS. In spite of the weak economic growth in winter in the leading economy of the world, everyone expected of the FED a further contraction of the QE3. The US regulator surprised everyone. Along with reduction of volumes of bonds’ purchase by $10 billion a month, there was an announcement about a faster contraction of unemployment assessment of inflation forecast didn’t change: the FRS expects to return to the goal level of 2% in 2015-2016. Against such positive background there was a strong appreciation of the US Dollars against its main counterparts. As a result the trading day on the pair ended with losses at 0.9% at 1.3830.