EUR/USD Fundamental analysis
The instruments showed multidirectional movement at the end of last week.
The euro/dollar was in a narrow consolidation area 1.3517 - 1.3542. The United States released June construction sector index. The data were weak and did not support the U.S. currency. However, the decline in the construction sector is observed as in the United States and in Europe. Only a joyous occasion for investors was the drop in the initial jobless claims in the United States, which reached 302,000. But this was not enough, and traders are not in a hurry to short.
The pound/dollar was partly influenced by the profit-taking shorts in the euro/pound. The pair reached the level of 1.7084 and then made a technical rebound and the pound managed to recover some of the losses. We expect that the "bulls" will buy on a strong reduction, relying on the northern movement continuation.
The dollar/yen strong strengthening is not worth waiting. A southern movement is expected for this instrument. The increased geopolitical tensions helped sell-offs in equity markets, thereby supporting a demand for the yen as a safe asset.