30, September 2014

Fundamental analysis

 EUR/USD (a 4-hour chart)

The main dollar competitors once again came under attack - the dollar index basket (USDX) finished the trading day at around 85.63. The euro is consolidating. Before this the EUR/USD fell against the euro zone negative macroeconomic data and the US positive release in terms of the GDP growth. The Germany consumer confidence index showed the minimum value over the past 7 months in September, which is a negative factor for the inflation. The final data about the US economic growth for the 2nd quarter were revised upwards to the level of 4.6%, the last time we saw such a strong growth in the fourth quarter of 2011.

The GBP/USD consolidated most of the day near the 63 figure, but in the midst of the American trading session also came under a sales wave against the dollar upward trend line. The Great Britain did not please the traders with the interesting reports this day and all market participants' attention was focused on the United States data. There was published moderately positive GDP figures.

The CPI showed a 0.1% decrease the last month in Japan that cheered the bulls to open the long positions in the USD/JPY. The corporate bonds demand had the same positive impact on the bullish sentiment for the USD/JPY in Tokyo stock exchange.