05, November 2014

Fundamental analysis

EUR/USD (a 4-hour chart)

The trades opening gave us a hope that the beginning of the week would be in the volatile direction. The US dollar has sharply grown up against all of the major competitors after of the China manufacturing activity (PMI) indicator decrease to the 5- months low in October. However, the "bulls" call about the US dollar was developed only in the dollar dispute with the yen where the US dollar continued its growth formed by the Bank of Japan last Friday when it announced the easing program expansion. The trades against the European majors were reduced to the consolidation range and ended on the opening prices relative to the pound and with a very slight increase to the euro.

The news calendar did not please the investors with any important information volumes - the activity index data (PMI) in Europe and the US was published and showed a good result. However, the short-term optimism caused by the UK information, was suppressed by the US reports that the prices returned to their original positions. The data published by the Institute for Supply Management (ISM) reported the activity growth in the US manufacturing sector in October. The PMI index has risen to the level of 59.0 after 56.6 in September when it was expected to see a slowdown to 56.0.