16, July 2014

EUR/USD Fundamental analysis

EUR/USD (a 4-hour chart)

The major pairs could not please traders with a high volatility. The EUR / USD gained 0.1% during the day despite the negative EU macroeconomic data. The May industrial production Release became significantly worse forecasted medians, showing the -1.1% decrease comparing with the previous month. The market reacted negatively - the investors understand the full European region problems depth, but the Fed’s desire not to tighten the monetary policy in early 2015 restrains the "bears" from massive short positions opening.

The British currency was under the pressure during the day and quotations fell lower the two-week range limit. The market participants don’t rush to buy the expensive pound which causes the pair falling. The euro/pound cross-course recovers the lost ground that just add a pressure on the British currency.

The USD/JPY was in demand against the short positions closure during the day, as well as amid the world's leading stock exchange growth. The U.S. bank Citigroup reported for the 2nd quarter and pleasantly surprised investors. Refreshed bank profit was $1.24 per share in April-June, versus the expected $1.05 per share.