29, December 2014

Fundamental analysis

EUR/USD (a 4-hour chart)

The USD grew against the euro last week. Earlier we could see a US dollar moderate correction - the dollar index basket (USDX) came to the mark of 89.95. The pair EUR/USD moderately increased during the day amid the partial short positions profit taking. The United States published the initial jobless claims that exceeded the traders’ expectations. It is worth noting that the four-week average dropped to the level of 290.25K that is a positive signal for the unemployment release that we received on 9 January. The low liquidity forced traders to refrain from active trading.

The British pound also demonstrated little power - the traders closed the "shorts" on the eve of the Christmas holidays. The pair GBP/USD was able to finish the trading day above the resistance level of 1.5544, but the cable perspectives remain vague - we again observed the UK and the US negative bond yields expansion to the new yearly high that.

The pair USD/JPY is consolidating after the strong growth last week. The bulls took profits on the long positions in Asian trading session. Then during the day there was a flat tendency - traders did not hurry to open positions in the run up to Christmas, despite the fact that the bond market made bullish signals. The US and Japan 10-year bond yields expanded to the level of 195 basis points that is a negative factor for the Japanese yen.