06, October 2014

Fundamental analysis

EUR/USD (a 4-hour chart)

The euro finished the last week with the quotation decrease. The US dollar stopped its decline against its major competitors - the dollar index basket (USDX) has finished the trading week above 85.65. The ECB's monetary policy meeting release publication was the main event for the pair EUR/USD. At the press conference, Mario Draghi said that the monetary control would begin the ABS assets purchases process worth up to $1 trillion euro in mid October. The short-term inflation forecasts were again lowered in the euro area which is a negative factor for the European economy. It is worth noting that we have not seen the EUR/USD strong sales. Traders took profits on short positions after the ECB president press conference.

The pair GBP/USD has been traded for three days in a row in the "red zone". The positive data about the UK construction purchasing managers’ index for September has not helped the British currency- the index was better than the forecasted medians at the level of 64.2. The pound sterling was stabbed back after receiving the10-year bond yield from the bond market that fell to one-year low amid the Brent oil quotations fall. The US and UK bond yields differential has expanded once again.

The dollar/yen has shown an upward movement at the end of the trading week.The pair USD/JPY remains under pressure amid sales on the world markets shares. Investors continue to escape from risky assets that increase the demand for the "safe haven" yen. Even the US positive macroeconomic statistics has not helped the bulls- the initial jobless claims fell to the level of 287 thousand last week which is a positive factor for the labor market data.