27, August 2015

Fundamental analysis

 EUR/USD (a 4-hour chart)

The US currency strengthened against all of its major competitors at the end of the day and leveled part of the previous session losses against the euro and the yen. It returned almost all its losses against the pound and significantly strengthened. Such a turn of events was amid the fact that the China Central Bank lowered interest rates and reserve requirements, thereby assuring investors' willingness to take economic stimulating measures.

After the Monday and Tuesday global stock markets heated sales - it was already possible to observe the opposite trend on Wednesday. Demand for Asian, European and the US corporate bonds contributed to the short positions closure against the US currency. The US consumer confidence and new home sales positive data have increased demand for the dollar. Against this background, the trades within the pair EUR/USD have finished with the quotations decrease. The EU also presented the economic positive data, but they poorly supported the euro. By the end of the day the pair GBP/USD had decreased against the general sentiment within the dollar and in connection with the UK empty macroeconomic calendar. The pair USD/JPY is consolidating. Earlier this pair strengthened due to the fact that investors had stopped to take refuge in the safe haven yen.