05, February 2015

Fundamental analysis

 EUR/USD (a 4-hour chart)

The dollar exchange rate stabilized after the most powerful decrease for the last year that was caused by the commodity producing countries currency growth. The day was not rich with important macroeconomic statistics that suggests the beginning of the global dollar correction. We should also mention the bullish rally in two key commodity markets assets: copper increased by 3.8%, the Brent oil rose up by 4.7%. At the same time, it is more difficult for the Fed officials to ignore external factors and other central banks actions.

The euro is decreasing against the dollar after a significant increase during the previous session, supported by hopes for the Greek debt situation compromise. The Greek Prime Minister Alexis Tsipras assured international lenders that he did not want to create conflicts in Europe.

The pound also strengthened against the dollar. The trend is developing in favor of the pound on the bond market: the UK 10-year bond yields are growing in relation to the US and German securities which is a bullish factor.

The dollar has grown against the yen due to the US and the Japanese stock market bond yields increase.