01, September 2015

Fundamental analysis

EUR/USD (a 4-hour chart)

The demand for the US dollar has been returning to the high levels amid the concerns about the further global economy reducing prospects. Another factor that supported the US dollar was a political component, mentioned in the Fed top management speech at the Jackson Hole symposium.

The US currency finished the trades in the "red zone" - the dollar index basket closed the trades at the mark of 96.15. Traders continued to win back the US GDP strong data for the second quarter. The US two-year Treasury bond yields, reflecting the Fed rate expectations, fell to the level of 0.724%. Financial markets are beginning to "lay" the FOMC monetary policy tightening. The US GDP growth high rate indicates that it is unlikely to be the China strong economic slowdown. As the risks can be leveled, the US Federal Reserve can raise interest rates.

As a result, the EUR/USD pair finished the trading day with a decrease, the pair GBP/USD had declined as well and the USD/JPY had increased.