12, November 2014

Fundamental analysis

 EUR/USD (a 4-hour chart)

The new week was opened by the attempts to continue the dollar sales on the sentiment formed by the US labor report that was published last Friday. However, the success was not long on the "bears" side within the dollar, the levels where the US dollar had fallen turned out to be attractive for purchases and investors began to stock up the long positions volumes within the dollar. As a result, the Monday's session ended with the dollar strengthening against all the major competitors. The US news was not published on Monday. However, the yesterday's trades ended with the dollar weakening.

We expect the NFIB small business sentiment report, it is considered that the optimism index rose to 95.5 vs. 95.3 in October that is a positive factor for moods within the dollar, but most of all it will not provoke reactions and increased volatility on the market. Apparently, this session will be marked by the weak range trading as the previous one.

The US GDP showed its growth in the third quarter. The service sector has shown an increase in the workplaces by 181 thousand. It is worth noting that service sector includes 52 thousand from the recreational sphere. The processing industry has increased the workplaces by 15 thousand. The US population share in the so-called labor force showed an increase from 62.7% to 62.8% in October this year. The 62.7% index for September 2014 corresponds to the minimum indicator in February 1978.