24, August 2015

Fundamental analysis

 EUR/USD (a 4-hour chart)

The US dollar was sold off along the entire market, still the greatest its loss was against the euro and the yen. Obviously, the US Central Bank statements convinced investors that the September policy tightening is unlikely to happen and there are arguments to close positions that were opened earlier on the expectations, relating to the US interest rates growth.

The Euro zone positive news supported the pair EUR/USD. The Germany producer price index exceeded expectations, demonstrating the zero change in July on the month basis and compared to the previous year the rate reduction was -1.3%. In addition, last week the European Commission approved the financial aid third program first tranche to Greece from the planned 86 billion euros, planned for three years.

During the day the pair GBP/USD was trading in a flat amid the oil market "bearish" sentiment as well as the UK retail sales moderately positive statistics: the July growth was 0.1% m/m while it was expected + 0.4% m/m.

The Japanese currency has considerably strengthened its position against the dollar amid the latter major currencies decrease as the Fed is unlikely to change the interest rates in September. The yen was supported by the government bond yields and the stock market indices decrease as well.