08, July 2014

EUR/USD Fundamental analysis

EUR/USD (a 4-hour chart)

This week the EUR/USD is within a narrow range 1.3575-1.3608. The industrial production releases in Germany and Spain in May showed a significant decrease that confirms the serious structural problems in the European region. Nevertheless, the euro ignored the weak reports and after a moderate price drop - after the American traders coming we saw a technical rebound.

The 10-year bonds yields fell on Monday from 2.64% to 2.62%. Meanwhile, the employment trends index (ETI) in the U.S. Conference Board's continued the growth in June for the second month in a row and rose to 119.62.

The euro rose slightly after four days decrease amid the growing sentiment among the Eurozone investors, who improved after two months decrease, which was due to the ECB's new measures on the economy stimulation and expectations improving for the global economy.

The short positions closing in the euro/pound cross-course put the pressure on the GBP/USD on a background of the empty macroeconomic calendar from the UK and the U.S.

The sales that were observed on the world's leading stock markets, which together with the decrease in the 10-year U.S. bonds yields weighed on the USD/JPY. There wasn’t any important macroeconomic statistics from Japan and the market participant fully copied the trading dynamics for the Japanese stock market.