EUR/USD Fundamental analysis
The major pairs held the narrow ranges against the backdrop of an empty macroeconomic calendar at the trading week beginning. All the week important events are still ahead so the market participants took a wait. The EUR/USD consolidated near the support level of 1.3512, which indicates a positions set by the institutional investors before a further bearish trend. The national activity index, calculated by the Chicago Fed, attracts the market participants’ interest. However, it doesn’t provide the events course influence. So this time, the index growth slowing in June to 0.12 against 0.16 in May and 0.18 forecast did not impact the investor sentiment. The German PPI slowed the fall and issued in June -0.7% y/y after -0.8% y/y. The Italian industrial orders collapsed in May by 2.5% y/y growth in April to 6.2% y/y. The monthly report announced the German economy problems as the Bundesbank pointed to a stop in GDP growth in the 2nd quarter.
The British pound has tested the support level of 1.7058, the bulls managed to repel the attack, which confirms our view that the market participants will buy the strong GBP/USD decrease, based on the medium-term uptrend continuation. After the quotes dropped to the level of 101.06 - the Japanese exporters came to the market which opened the long positions opposing the national currency strengthening.