07, August 2014

EUR/USD Fundamental analysis

EUR/USD (a 4-hour chart)

The pair EUR/USD is in the bears’ power on the background of the positive macroeconomic data from the United States. The ISM in the services sector came out much better than expected at around 58.7. It should be noted that the rate showed significant acceleration above the 12-month moving average in July. This release, together with the manufacturing sector data indicates a strong economic growth in the United States at the third quarter beginning.

The GBP/USD has a quite weak reaction to the strong report on the UK Services PMI. The bulls stormed the resistance level of 1.6881, but the attempts were unsuccessful. As soon as the sell-off in the cross-rate EUR/GBP traders allowed to finish the day on a positive note.

The battle between bulls and bears in the USD/JPY pair was won by the minimum on the background of the recent sales in the global stock markets which took down Japanese stock market. Even the positive macroeconomic statistics from the United States failed to reassure market participants to break through the 103rd figure.