03, December 2014

Fundamental analysis

EUR/USD (a 4-hour chart)

The euro fell against the USD. Earlier the dollar index basket (USDX) closed the trades at the mark of 87.97. The pair EUR/USD showed the moderate upward trend during the day amid the US positive ISM production index release. The manufacturing sector business activity was better in November than the traders had expected despite the decline compared with the previous month. During the day traders fixed the profits on the short.

The sterling decreased against the dollar on the yesterday trades. The positive UK manufacturing sector PMI indices release let "bears" to close short positions. The manufacturing purchasing managers’ index has been growing for two months in a row, but it is early to speak about the negative trend change - the annual trend is still downward. Traders are tired of pound sales and they decided to close the "shorts" on Monday amid the UK and the US negative yield spreads expansion.

The yen continues to decrease against the dollar. Earlier the pair USD/JPY showed the quotations moderate decrease after the new seven year high set. The positive UK manufacturing sector PMI indices release for November allowed the bulls to recover some lost ground. The US is still encouraging traders with the positive macroeconomic statistics and in these terms does not allow the Japanese yen to strengthen its position.