29, April 2015

Fundamental analysis

EUR/USD (a 4-hour chart)

The US dollar was under pressure - the dollar index basket (USDX) finished the trading day at the mark of 96.86. There was not any important macroeconomic statistics the first part of the week. Traders won back the bond market dynamics where the US Treasury 10-year bond yields were moderately declining in relation to its main competitors during the day.

The pair EUR/USD is still inactive but it was able to break through 1.0925. The market's attention is directed to the UK GDP data and to the situation in Greece. The pair remains in the red zone amid the dollar recovery after the US weak PMI services a weak decrease.

Also the situation in Greece has put pressure on the pair. Athens needs to find about € 1 billion for the wages and pensions payment this week and it needs to find € 200 million for the IMF payment by the end of the week.

The Japanese yen is growing which can cause the pair USD/JPY decline to 119.00 despite the Japan retail sales weak preliminary data. The US stocks reduction helped to preserve the yen stability. The dollar was declining along the entire market as the weak data allowed investors to push back once again the expected first Fed interest rate growth timing.