03, March 2015

Fundamental analysis

EUR/USD (a 4-hour chart)

After the last week dollar quite strengthening amid the market preparation to March when the ECB intends to launch the bond purchase program, the dollar is traded once again in its growth direction against the European majors. Most of the US economic messages announced the results within and above forecasts which allows the US dollar to keep balance after the news publication from other regions that are currently supported by its competitors.

The dollar and the yen opposition was not an exception - the US dollar continued its growth that started last week. In this case, the market was, probably, guided by the Japanese economic data which, in some way, possessed the opinion that the Japan Central Bank still would have to launch the softening program as well as the positive part of the US data which traditionally supports the pair dollar/yen.

The market volatility can grow amid the ECB and the BoE decisions at the meetings which will end on Thursday.

The dollar is also supported by the Fed top managers’ speeches (Bullard, Lockhart) and their statements showed that the Fed rate is firmly directed towards the monetary policy tightening.