22, July 2014

EUR/USD Fundamental analysis

EUR/USD (a 4-hour chart)

The U.S. currency was able to significantly strengthen its position relative to its main competitors. The EUR/USD was able to hit a new minimum for at least the past five months amid the negative macroeconomic data from the euro area balance of payments in May. The balance of payments current account surplus declined by 2.1 billion euro to 19.5 billion in May. The Institute of Michigan published the USA consumer confidence index in July which could not support the strong demand for the dollar as the data release came out worse than the forecasted median.

The GBP/USD has remained under the pressure amid the institutional investors’ further profit on long positions. We did not receive any important macroeconomic statistics from the UK. But then, after the moderately negative the Michigan Institute report on consumer confidence "bulls" returned to the market and the British currency was able to recover some lost ground.

In Asian trading the USD/JPY dropped, after which there was a technical rebound against the demand from Japanese exporters, as well as the world's leading stock exchanges growth. However, we have not seen strong quotations growth that confirms the strong factor of the investors in the U.S. currency interest absence.