06, January 2015

Fundamental analysis

EUR/USD (a 4-hour chart)

The US dollar continued to strengthen against its major competitors - the dollar index basket (USDX) finished the trading day at the mark of 91.15. During the day the pair EUR/USD tested the 19th figure amid the “black gold” sales. The Brent oil fell to the mark of 56.02 that is able to enhance the Eurozone deflationary threat development. In the light of this traders got rid of the euro.

The negative UK PMI manufacturing sector sent the pair GBP/USD to knockout. In December the indicator fell to the mark of 52.5% that has been the lowest level since June 2013. This release points out to the industrial production weak data that in turn has a negative impact on the final 4th quarter GDP figures. After the release traders actively sold the British pound.

The USD/JPY bulls opened long positions, considering the current levels attractive for their investment portfolios. Even the negative the ISM manufacturing release could not spoil their mood. In December the indicator decreased to 55.5% that is the lowest level for the last 5 months. It should also be noted that the total value fell below the annual average that indicates the strong business activity decline in the manufacturing sector. Against this background, bears opened short positions.