15, October 2015

Fundamental analysis

Fundamental analysis

The pair EUR/USD finished the trades with the quotations growth amid the Germany and the US government bond yields decline. Earlier the euro decreased after the weak German business confidence index – the October indicator fell from 12.1 to 1.9 against expectations of 6.8. The European ZEW index fell to the forecasted value of 30.1 from 3.3 in September. Against this background, the pair continued upward movement.

By the end of the day the pair GBP/USD fell after the UK September disappointing inflation data. A small storm rolled across the UK market. The September consumer price index (CPI) fell down to deflation at an annual rate: -0.1% y/y. This is the first inflation negative annual rate for the last 55 years. The base Index (Core CPI) remained at the level of 1.0% vs. 1.1%. Retail prices declined from 1.1% y/y to 0.8% y/y (forecast 1.0% y/y). Even house prices have not changed: 5.2% y/y against expectations of 5.5% y/y. At the last trading day, the pair sharply gained weight.

The pair USD/JPY finished the trades with the quotations decline amid the "bearish" sentiment in the global equity markets. The retail sales in United States, which was 0.1%, which is below the expected 0.2%, also contributed to the decrease of the pair.