EUR/USD Fundamental analysis
The U.S. currency strengthened its position against its main competitors, the dollar DXY basket finished the trading day at around 80.56. Institutional investors actively open the short positions which causes a decrease in the single currency along the entire market. The PPI index in the United States for June showed an increase for 0.4%, which was a pleasant surprise for tarders and confirms the inflationary processes development. That inflation has caused debate within the Fed about raising the federal funds rate as inflationary pressures will play into the "bulls" hands on the dollar. The euro/dollar remained under pressure during the day amid the negative background.
The GBP/USD was traded in a narrow range after soaring the positive CPI data on Tuesday. The National Bureau of Statistics has published several controversial UK labor market reports for May. The unemployment rate showed a reduction to the level of 6.5 with the UK salaries strong reduction as a negative factor for the inflation.
The quotations growth on the world's leading stock markets supported the moderate demand for USD/JPY. The U.S. corporate reporting season in the United States kicked off quite well - all companies announced the results of its activities for the 2nd quarter showed results better than market expectations that support the demand for corporate paper in the world.