04, November 2014

Fundamental analysis

 EUR/USD (a 4-hour chart)

The previous week ended in the dollar favor in all spheres. The US dollar gave a powerful "fort" against the yen that was less strong. The dollar grew against the euro and showed a neutral result against the pound. The market was excited by Japan reports where the Central Bank unexpectedly increased its incentive program which provoked the strong dollar sales against the yen at the end of the last week. The EU largest economic data that continue to disappoint us helped to resume the dollar growth against the euro.

The pair pound/dollar spent trading in the different directional consolidation and finished the dispute on the opening prices as there was no disappointed pound news and the US economic indicators were uneven, although most of them showed a positive release.

The beginning of the week contains a lot of important US economic information, but the main theme will be the October employment labor report and the information about the number of work places in the ADP private sector.

Our expectations are associated with a good dynamics that can point out to the continued high level of workplaces in the United States and it can support the US dollar according to the general rule "buy the rumor". However, the European news is able to set the trading tone, because both the Eurozone and the UK influential European Central Banks will announce their decisions about the monetary policy perspectives on Thursday.