03, September 2015

Fundamental analysis

EUR/USD (a 4-hour chart)

The euro was not able to take advantage of the positive news background which indicates the absence of strong buyers in the market. The euro zone unemployment fell by 0.2% by the end of July, indicating an economic growth that is a positive factor for the currency. The ISM manufacturing sector indicator has showed the lowest value since May 2013 which is a negative signal for the Fed. Despite these positive factors, the London sales ended with the euro decline which indicates the bears’ predominance in the market.

The pair GBP/USD has decreased. The British currency is showing weakness amid the fundamental factors. The debt market is also pessimistic about the British currency: the UK government bond yields declined significantly relative to its US and Germany counterparts. Nevertheless the pound strengthened by the end of the trades.

Earlier the pair USD/JPY has decreased. The world leading stock exchanges negative dynamics will contribute to the Japanese yen demand as a funding currency. The Japanese and the US government bond yields are increasing which is a positive factor for the dollar. By the end of the trades the pair dollar/yen slightly increased.