07, January 2015

Fundamental analysis

 EUR/USD (a 4-hour chart)

Rumors that Greece may exit the euro zone sent the European single currency to test the eight- year minimum. The German Chancellor Angela Merkel in an interview with German media said that she considered possible Greece exit from the euro zone. The EUR/USD quotes reached the level of 1.1861 at the moment after this news announcment. Setting a new maximum for the last eight years, the euro/dollar demonstrated the short-term growth. Nevertheless, the pair continues to test the level of 1.1863.

The pair GBP/USD started the trading week with a gap at the level of 1.5245. After the UK construction sector PMI report bears tried to organize an attack against the British pound. We have not seen the quotations reduction below the level of 1.5200. The UK and the US 10- year negative differential bond yields have been declining for two consecutive trading days that is a deterrent for the bearish sentiment strengthening.

Sales on the stock markets in Tokyo and New York encouraged bears to open short positions within the pair USD/JPY. There was no important macroeconomic statistics this day and traders focused their attention exclusively on the stock market dynamics. It should be noted that the Nasdaq index that is a demand barometer for risky assets, on Monday it declined less than their main colleagues, indicating the final phase of the bearish trend in the US stock market.