07, April 2015

Fundamental analysis

Fundamental analysis

Volatility in the market on Monday was weak the Easter holidays. The US dollar was knocked out after the March labor market statistics release last week. The Non-Farm number amounted 126 thousand which is worse than the investment banks economists consensus forecast by 120 thousand.

The indicator was also revised downwards by 31 thousand in February. The unemployment rate remained unchanged at the previous level of 5.5%. The only positive thing is the average earnings report. The US average hourly earnings increased by 0.28% to 24.86 dollars in March which exceeded the traders’ expectations. This release allows to count on the consumer prices growth in the second quarter. The March employment reports complemented a series of the US economic weak data that have recently come out and it took note in the market that June is the most likely period of interest rate increase, but can be probably removed from the agenda.

At the same time, there are opposing views, considering t hat we should not pay too much attention to this unexpected labor market result and the previous time limits are quite relevant. After a high volatility on Friday the pairs EUR/USD and GBP/USD showed a flat, and the pair USD/JPY slightly increased on the yesterday’s trades.