20, April 2015

Fundamental analysis

EUR/USD (a 4-hour chart)

The US dollar was again under pressure - the dollar index basket (USDX) finished the trading day at the mark of 97.85. During the day the pair EUR/USD was in demand amid the oil prices increase and the US constriction sector negative macroeconomic statistics. By the end of the day the pair euro/dollar had increased.

The UK 10-year bond yields showed growth relative to their US and Germany counterparts which cheered bulls to long. The British pound had increased during the trades but it slightly corrected by the end of the day.

The pair USD/JPY has finished the fifth consecutive trading day in the negative area. The world leading stock markets showed a moderate decrease which together with the oil prices increase encouraged bears to short. Against this background, the pair dollar/yen had decreased by the end of the day.

The US inflation statistics is expected at the level of the forecasted medians. The wage growth with the energy cost increase indicates to the inflation expectations strengthening. The CPI fell by 0.1% last month compared to the last year March figures. The underlying index inflation rate growth was 1.8%.