16, December 2014

Fundamental analysis

EUR/USD (a 4-hour chart)

The traders again ignore the US positive macroeconomic statistics and as a result we see the short positions growth within the US dollar - the dollar index basket (USDX) closed the trade at the mark of 88.12. The pair EUR/USD closed the trading day with the quotations consolidation. Bulls opened the "longs" despite the euro area moderately industrial production negative release and the consumer confidence positive data by the University of Michigan that showed a record growth to the level of 93.8 in December. It is also worth noting the German 10-year bond yields.

The pair GBP/USD showed a moderate decrease amid the cross-rate EUR/GBP growth. Traders do not want to sell the British pound despite the UK and the US negative yield spreads expansion and the consumer confidence positive release by the Institute of Michigan.

The pair USD/JPY copied the US and the Japan stock markets dynamics throughout the last trading week. After the seven weeks in a row we have observed profit-taking on long positions for two weeks in a row within the upward trend in the US market share that caused the pair USD/JPY sales. The leading US stock indices again came under a wave of sales that put pressure on the pair USD/JPY. The pair decrease continued on the yesterday trades.