28, October 2014

Fundamental analysis

 EUR/USD (a 4-hour chart)

The US dollar weakened slightly against most of its competitors - the dollar index basket finished trading at around 85.71. The pair EUR/USD enjoyed a moderate demand. The traders ignored the positive data about the US new buildings sales in September that indicates traders are set to the euro/dollar upward movement. The last week commodities again showed a decline, but this factor did not support the US dollar demand.

The UK GDP release for the 3rd quarter came in line with the traders’ expectations - 0.7%. Traders close short positions within the pair GBP/USD, as the negative data have already been laid in quotes - we have seen the pound sales for the last three days. At the moment the British currency quotes reached the level of 1.6095 and then we noted some technical rebound.

The pair USD/JPY was under pressure, it was not able to finish the trading on a positive note. After the "bull rally" that we saw last week, traders partially took profits on "longs". Nevertheless, the bulls’ position is strong enough the world's leading stock markets ended the day with the quotations steady growth and with the US positive macroeconomic statistics will support the dollar demand in the short term.