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Under lack of fundamental events, the market responds readily to verbal ones

Under lack of fundamental events, the market responds readily to verbal ones
Previous day was quite calm and without sharp bursts. The lack of significant events put players in peaceful mood. Despite strong rollback of euro from maximums yesterday, it was probably caused by technical factors. By the end of the day the pair returned to opening level. In general, radical changes weren’t detected in the market – dollar’s index closed practically unchanged. 
Today news background is almost empty again. Speaking of noticeable events, there is only industrial production in the U.K. Still, it will have no considerable influence on pound’s dynamics. Decrease of growth rates is expected in contrast to previous month, but it can be called a negative only formally. Under lack of fundamental drivers, the market responds readily to verbal events. At Asian session speeches of heads of two Central Banks were made – Australian and Japanese. If the first speech provoked temporary decrease of Australian dollar, as Glenn Stevens gave a hint of probable further decrease of rates by the regulator, then after the speech of Kuroda Australian dollar rapidly regained all losses against the background of general decrease of dollar. First of all, speech of Kuroda influenced Japanese yen. He expressed doubts that current rate of yen reflects fundamental indicators, and presumed that in future fall of yen wouldn’t be so rapid. Although Kuroda rejected that at recent summit of G7 currency rates were discussed, but the fact that his comments were made immediately after this event, provoked active reaction of the market. Yen strengthened sharply, and caused growth of other currencies. 
 
Trade tactics:
At this moment we have no firm belief about further movement of the market, technical analysis gives contradictory signals. We prefer bull scenario for EURUSD pair in the short term, what we have already mentioned. Deep “slump” of the pair at yesterday’s trades allowed to open long position at quite comfortable level for 1.1235, though initially we didn’t plan to entry the market. Stop is set at the entry point. 
 
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