04, May 2015

Fundamental analysis

Fundamental analysis

There was a multidirectional trend on the Forex market. At the end of the day the pair EUR/USD decreased amid the German 10-year bond yields increase relative to its main competitors. The US manufacturing sector in the first quarter showed a significant decline and taking into account the new industrial orders decrease it is difficult to expect the data better than the forecasted medians. In this regard, the US dollar will not be able to get support and to compensate for some lost ground.

On the contrary, after setting the fresh 2-month high of 1.5490 the pair GBP/USD was hit by the sales wave amid the long positions profit taking. The British pound can be further supported by the oil prices growth. On the other hand, the pair EUR/GBP cross-rate significant growth amid the Germany and the UK bond yields reduction may put pressure on the pound. By the end of the day the pair GBP/USD had decreased.

During the day the pair USD/JPY was in demand after the Bank of Japan negative economic forecasts publication. The GDP and inflation forecasts encouraged bulls for the long positions opening and against this background, the pair dollar / yen has increased.