Feb. 21: American session
Tatyana Norkina, an analyst at FBS
Despite the Friday, trading on the currency markets is very active. The reason of the growth of European currencies against the U.S. dollar is negative data on existing home sales in the U.S.. The data of the past month was significantly worse than forecast: -5.1 % vs. -4.3 %. According to revised data an increase of 0.8 % was previously recorded. This data provoked the fall of the dollar index, which is currently losing about 0.11 %. Stock U.S. indices are in the green zone and add a little more than 0.23 %. The EUR/USD on the news jerked upwards, breaking the resistance 1.3725 . Currently bulls stormed highs 1.3760. GBP/USD pair also began to recover suddenly, despite the publication of the highly negative statistics on retail sales in the UK. After sharp fluctuations and depreciation of the mark of 1.6610, the pair soared to around 1.6720.
USD/CHF has decreased in the area of 0.8870, after the daytime when bulls were unable to pass through the 0.8910 resistance. Bearish trend is gaining momentum. But the pair USD/JPY once again stumbles on 102.60. This resistance makes it impossible for the bulls to gain a foothold above even though today's explosive growth of the pair is around 102.80.
The mixed data on inflation and retail sales have increased volatility for the pair USD/CAD, the rate of which jumped on news to the January extrema, 1.1194, but immediately collapsed to 1.1127 . At the moment when the bulls are trying to resume growth, trades conducted at at 1.1150 .