19, August 2014

EUR/USD Fundamental analysis

EUR/USD (a 4-hour chart)

The main competitors of the dollar could regain some lost ground last week. The EUR/USD used the moderately negative macroeconomic statistics from the United States and finished the day up 0.25%. The Michigan Institute consumer confidence came out worse than the forecasted median, at 79.2, showing the minimum value over the past 8 months.

It should be noted that the final index fell below 12-month moving average which may signal a slowdown in the American economy. The July retail sales release also confirms this factor. Nevertheless, the current situation in Europe is much more negative and think about the downtrend change is too early.

The GBP/USD is within a narrow range and even the weak consumer confidence release from the United States could not cheer the bulls to open long positions. Bears reliably keep the current level and this factor indicates a set of short positions by institutional investors, and in the near future is expected to be continued downward.

Investors take profits on long positions in the world's leading stock market which put pressure on the USD/JPY. The USA consumer confidence came out worse than market expectations that together with the yields fall on 10-year Treasuries have caused the dollar demand for.