28, August 2014

Fundamental analysis

EUR/USD (a 4-hour chart)

The dollar continued to strengthen against its major competitors - the dollar index basket (USDX) finished the trading day at around 82.67. The EUR/USD remained under the pressure on the background of the United States positive macroeconomic data. The July durable goods orders release showed 22.6% increase which provides a strong private consumption solid foundation in the current quarter. The consumer confidence index from the Conference Board also has pleased the market participants and a good report on this background pushed the euro/dollar to the level of 1.3165. The pair was returned above this level.

The GBP/USD amid the lack of interesting reports publication consolidated in a narrow range. However, as soon as the market participants got a pleasant surprise from the United States on the durable goods orders and the consumer confidence index - the sellers began actively selling the GBP/USD, based on the continued United States economy strong growth in this year 3rd quarter.

The stock index S & P500 storms all new maximums, followed by the Japanese stock market stretching and it all ends with the positive macroeconomic statistics from the United States on the durable goods orders. Against this background, we saw the bullish sentiment on the USD/JPY. The traders are still positive about the American dollar prospects and redeem any USD/JPY quotations decrease.