25, May 2016

Fundamental analysis

EUR/USD (a 4-hour chart)

Yesterday the dollar rose to the two-month high against other majors, due to the expectations of the rate hike by the Fed in June. The possible rate hike continued to be a driver for the US currency.

The euro continued to decline when Germany published weak economic sentiment (6.4 vs. previous 11.2). The sentiment worsened amid concerns about the global economy prospects.

The pound strengthened against the dollar when a new poll showed that 55% of Britons supported staying in the EU vs. 42% leaving the EU.

The yen weakened after Taro Aso's statement (Japanese Finance Minister). According to Taro they need to stimulate the economy further if they want to raise the sales tax in April 2017.