Two relevant news in different contexts have given bullish moves to the dollar’s rival in the last hours. First, China's trade balance, which showed a surplus well above expectations. It is known that positive news from the Asian giant often have an effect on all markets that respect the second largest economy in almost religious. Not because of their political system or form, of course, but because it is the market to which everybody wants to access.
In addition, the auction of Spanish Treasury at 3 and 5 years was laid with much lower rates than expected by analysts. Gone are the dramatic figures above 7% last July.
From the data of China, the main beneficiary was the Australian dollar, which has just reached a new high since September 14 last. The Aussie repositioned upward in the short term, and at the moment there are major reversal patterns.
The euro, of course, benefited from the news from Spain, minutes from the monetary policy announcement by the European Central Bank, whose foundations are explained, from 8:30 Eastern, by President Mario Draghi in his regular press conference. No changes are expected in interest rates and no grand announcements by Draghi.
As concerns U.K. monetary policy Bank of England announced its decision pertaining to the interest rate. It was in the historical record of the institution (0.5%), which holds since early 2009. Also remained unchanged its asset purchase plan. The pound suffered a negative impact initially at the news, but comes with a slightly bullish trend in the short term charts.
European currencies continue their upward trend during the next hours. The pound could go again near 1.6070, followed by 1.61, and the euro, approaching 1.3150 and 1.32.
The yen, which lost positions in the last 24 hours, could take hold again during the day. On the 4 hour chart, the USD/JPY as a figure of reversal-double ceiling, which is located at 85.30 target, you can play value between Friday and Monday.
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