09, March 2015

Fundamental analysis

EUR/USD (a 4-hour chart)

The US dollar continued its winning streak - the dollar index basket (USDX) finished the trading day at the mark of 96.46. The pair EUR/USD set a fresh 11-year low. Investors still win back the beginning of the ECB quantitative easing program. The US and Germany 10-year bond yields once again greatly expanded and the Non-Farms release came out better then forecast that caused the pair euro/dollar quotations decrease.

The pair GBP/USD is also under pressure, but it decreased more modestly in comparison with the major currency pair. The Bank of England left the monetary policy unchanged, but the institutional investors’ bullish sentiment towards the US dollar did not allow the British pound to strengthen its position. By the end of the day the pair GBP/USD has decreased.

The dollar growth was going on all fronts – the pair USD/JPY increased at the end of the day. The demand for the European risky assets and encouraged bulls to long and at the moment quotations reached the level of 120.90. However, the US jobless claims negative release cooled the bulls’ ardor but the employment rate in the US rose more than economists expected.