12, February 2016

Fundamental analysis

EUR/USD (a 4-hour chart)

The dollar showed mixed trades against its major rivals. The stock markets have tried to return to a growth, still Janet Yellen's soft comments regarding possible returning to the quantitative easing program, have caused some concerns among investors. The head of the Fed talked about negative interest rates. According to her she does not know any reason the Fed might introduce the negative rates in the nearest future.

In economic news, the leading stock markets showed an upward trend which is a negative factor for the euro as a funding currency. However the pair euro/dollar showed a growth by the end of the trades.

The UK industrial production weak report indicates that it is not necessary to count on the pound significant growth. The industrial production volume decreased by 1.79% in the last year fourth quarter compared with the same year third quarter. The pair pound/dollar slightly grew after a decrease.

Yesterday the US published the Initial Jobless Claims for January at the level of 269K (the previous value was 285K; the forecast was 287K). The short positions cutting signals about investors' "risk appetite" growth that traditionally has a negative impact on the yen value as a funding currency. Nevertheless, the pair dollar/yen fell to the new minimums.