26, September 2014

Fundamental analysis

EUR/USD (a 4-hour chart)

After a short falling the US dollar again is raised to new highs - the dollar index basket (USDX) has completed the trading day at 85.02. The main pair EUR/USD has fallen to the 28th figure after the extremely positive release publication for the US new home sales. In August the sales increased by a record 18%, that give us a good ground for a pessimism about the US economy prospects.

The IFO business climate index in Germany showed the lowest level from February 2013 till September in Germany and against this negative background the bears began to reduce actively the euro/dollar.

The GBP/USD was trying to consolidate above the 64th figure against the reducing cross-rate EUR/GBP, but the US positive macroeconomic data about the housing market do not give the bulls hope for success. The decline in the oil quotations only fueled the dollar demand and against this negative background the pound made a sharp drop back down.

The USD/JPY was under pressure amid the Tokyo Stock Exchange low quotes in the early hours of the Asian trading session. However, the European traders’ arrival supported the dollar demand after the United States new home sales strong report publication, the dollar sharply raised up. It should be noted that the bullish sentiment was observed not only towards the American dollar, but also in the stock markets.