16, January 2015

Fundamental analysis

 EUR/USD (a 4-hour chart)

The US dollar was trading different directed against its main competitors. During the day the EUR/USD showed a high volatility. The EU court issued a verdict on the European Stability Mechanism legality that caused the euro sales as the ECB can now safely run the QE program.

During the day the pair GBP/USD enjoyed moderate demand amid the strong EUR/GBP cross-rate reduction as well as the US weak statistics. The strong bearish sentiment within the single European currency put pressure not only on the euro/dollar, but also on the euro/pound cross-rate that in its turn supported the demand for the British pound. The December retail sector sales rate decreased by 0.9%, the November report was also revised towards reduction.

The pair USD/JPY showed the sales decline amid the Tokyo stock exchange sales, but bulls returned to the market and began to open long positions. The US retail sales negative report sent the pair dollar/yen to 116.30.