13, April 2015

Fundamental analysis

Fundamental analysis

Last week, the US dollar strengthened significantly in relation to its main competitors - the dollar index basket (USDX) finished the trading day at the mark of 99.37 that is the highest level for the last three weeks. The Germany March industrial production positive report has not helped the EUR/USD to strengthen its position. By the end of day quotes decreased amid the historic low update within the German 10-year bond yields.

The pair GBP/USD was also in the bears’ power. The trade balance release disappointed traders with the weak data which with the UK and the US negative bond yields increase sent the British pound in the knockout. By the end of the day the pair GBP/USD slightly corrected after a decrease.

Bearish sentiments initially dominated in the pair USD/JPY amid the Alcoa weak corporate release for the first quarter that prompted profit-taking in the carry trade transactions. At the moment the price reached the level of 119.85, but then bulls were able to take the initiative in their own hands and end the day in the "green zone" amid the US Treasuries bond yields increase. However, the bears came back and as a result, the pair ended with the quotations decrease the trading day.