23, February 2016

Fundamental analysis

EUR/USD (a 4-hour chart)

The US consumer price index for January rose by 1.4% year over year, beating our expectations about a growth by 1.3%. The core inflation, which excludes food and energy, rose 2.2%, also more than expected.

There was a decrease for demand on euro because the composite PMI fell down. The composite PMI is the combination of the manufacturing and services sectors activities, it reached a 13-month low of 53.0 in February from January's value of 53,6. Economists expected 53.3.

British Prime Minister David Cameron said that he had agreed with the European Union on the exceptional conditions of membership within the union. Still, according to his campaign promises, he would held a referendum where the country would decide to stay or not within the EU.

According to the preliminary estimates, the Japanese manufacturing sector index activity for February came in at 50.2, while experts expected it to fall from 52.3 to 52.0 last month.