23, January 2015

Fundamental analysis

 EUR/USD (a 4-hour chart)

The US dollar continued to rise against its main competitors - the dollar index basket (USDX) finished the trading day at the mark of 93.04. The traders’ attention was focused on the ECB meeting. The pair EUR/USD sharply fell.

On Wednesday the pound was under attack after the MPC last meeting minutes publication. The monetary regulator pointed out to the CPI decrease continuation to zero in the 1st quarter. The number of "hawks" reduced to zero in the Bank of England – McCafferty and Weale no longer vote for the interest rates increase. The Central Bank economists also reported the downside risks growth for the Eurozone economy which will act as a deterrent for the UK economic growth.

Yesterday the pair USD/JPY demonstrated its high volatility. And it is not surprising –the Bank of Japan announced the monetary policy meeting results. Monetary authorities lowered the inflation forecast and the GDP for the fiscal year of 2015. The incentive program also has not undergone any revision, despite the expectations of volume incentives increase by some Wall Street economists.