EUR/USD Fundamental analysis
The American currency continued to strengthen against its major competitors - the dollar index basket (USDX) finished the day at 81.52. The pair EUR/USD lost 0.15% at the end of last week due to negative Draghi’s comments. Mario Draghi said that inflation will remain at low levels for a long time and the lending companies rates remain weak for the economic growth recovery. The CPI decreased to the level of 0.4% in July.
Bank of England showed no surprise – the monetary policy will remain the same. However, after the meeting bears rushed into the market there was a decrease in the GBP/USD quotations. Traders understand that in the current environment a strong British currency against its major "trading partners" carries risks for the economy as a whole and in particular for the inflation and endanger the earlier-than-expected first increase in the discount rate. The positive macroeconomic data from the United States just added optimism to bears.