22, April 2015

Fundamental analysis

EUR/USD (a 4-hour chart)

The US dollar began the new week with the quotations growth- the dollar index basket (USDX) finished the trading day at the mark of 98.19. The pair EUR/USD was under pressure amid the Germany PPI negative release as well as the German 10-year bond yields. However by the end of the day the pair euro/dollar had increased.

According to Destatis, the Germany statistical agency, the producer prices decreased more in March than it had been forecasted. The producer price index fell by 1.7% on the annual basis, exceeding the economists’ forecast that expect decline by 1.6%. In February the producer prices fell by 2.1%.

After two weeks "black gold" the price growth was a correction that had a negative impact on the pair GBP/USD which had shown a decline. Nevertheless the pair corrected upwards by the end of the day.

The Japan coincident index was 110.7 in February compared to 113.2 in January. The preliminary index value was 110.5. Bullish sentiment on the world leading stock markets supported the demand for the pair during the day which finished the trades with the quotations growth.