06, August 2014

EUR/USD Fundamental analysis

EUR/USD (a 4-hour chart)

Trading week beginning was a quiet enough. The EUR/USD was within a narrow range of 1.3409 - 1.3431. Then the pair fell to 1.3361. In the absence of important macroeconomic statistics the traders took a pause. Only the moderate euro/pound cross-course decrease allowed the bears to win.

The UK construction sector PMI release showed the decrease compared with the previous month, but was better than the forecasted medians. It should be noted that this figure has been stable for 9 consecutive months being above $60% which proves the UK construction sector positive trend. The market participants took profits on the GBP/USD short positions amid this moderately positive backdrop.

We could see the dollar/yen side tendency during the day. In the second half of the U.S. trading session there was the demand for the U.S. stock market, which supported the pair.