01, July 2014

EUR/USD Fundamental analysis

EUR/USD (a 4-hour chart)

The trading week begining surprised enough the market participants with "strange" movements on major pairs. The EUR/USD showed the quotations’ growth by 0.4%, despite the negative statistics from the Eurozone and the positive data from the United States. Germany also took a good start having reported about the retail sales reduction in May to the level of 0.6%. The euro area inflation release came out worse than forecasted medians as figure still stands at 0.5%.

The GBP/USD has shown impressive growth, despite the negative macroeconomic statistics. The money supply in Albion shows the decrease for 3 consecutive months according to the latest report, which is the negative factor for the inflation growth. The UK inflation is below the target level, and the further decrease will put an end the BoE monetary-credit policy tightening. The U.S. showed a strong real estate market report though the British pound showed a "bullish" rally.

The other day the USD/JPY remained under pressure amid negative macroeconomic statistics from Japan. The industrial production release came out worse forecasted medians that caused the Japanese stock market sales. The "Bulls" are not hurry to stock market and even the positive release on pending home sales in the U.S. in May was not able to shake up the market participants.