Comment on the situation on a market 05.02.14

Good data from the United States of America will have a positive impact on US dollar

There was a moderate USD correction earlier this week, but it can stop and might get new positive sign today if ADP Employment Report and Non-Manufacturing ISM Report on Business for January are good enough. As it has been mentioned before, the main reason of US dollar increase is the change of vision of US Federal Reserve on the issue of further national economy stimulation. These measures were the reason why US dollar had problems during the last year.

All these changes in US economy evaluation from negative to positive can lead to the normalization of monetary policy and refinancing rate as soon as the reduction of incentives is finished.

Market dynamics will depend mostly on data and statistics from USA today. If non-farm result is higher than 180 000 and Non-Manufacturing ISM Report on Business is about 53,7 or higher USD can start the growth against all the major currencies today.

Semen Kamensky​