22, September 2014

Fundamental analysis

 EUR/USD (a 4-hour chart)

The EUR/USD was in demand against the published US negative macroeconomic statistics last week. The construction sector releases - the issued building permits volume and the new installation foundations number do not meet the forecasted median, despite the positive leading indicators growth. The Fed Chairman Janet Yellen points out that the US real estate sector is still experiencing some difficulties. Even the initial jobless claims decrease to the level of 280K was ignored by the market participants.

The GBP/USD has shown an upward trend awaiting the Scotland referendum failure. Many traders decided to fix their short positions on the British currency against its major competitors expecting that the Scotland residents will reject the separation from the United Kingdom. Against this background the “cable" growth was observed along the entire market. Nevertheless, the pair fell again.

The USD/JPY is achieving the higher results, despite the published Japan positive macroeconomic statistics and the US negative releases. The Japan Trade Balance showed the August negative balance reduction, but again we did not see the exports growth last month. Against this background, the pair dollar/yen quotes dropped to the level of 108.37, after that the bulls returned to the market and began to open "longs". The consolidation was observed after the weak reports publication on the US construction sector that only confirms the strong bullish trend.