30, October 2014

Fundamental analysis

 EUR/USD (a 4-hour chart)

We observe a bearish sentiment within the US dollar - the dollar index basket (USDX) finished trading at around 85.36. The pair EUR / USD has been on a positive note for three trading days in a row. The pair sharply fell on yesterday trades. Traders' attention was focused on the US release. A report on the consumer durable goods orders came out worse than the forecasted medians in September, showing a 1.3% decline while we were observing the consumer confidence positive data by the Conference Board.

The pair GBP/USD enjoyed a moderate demand during the day amid the short positions opening within the US dollar along the entire market. The consumer confidence release by the Conference Board rose to 94.5 in October, showing multi-year highs amid the employment growth in the United States, thus freezing bulls’ enthusiasm within the British currency.

The bulls are returning to the equity markets that supports the pair USD/JPY demand. The US stock market is rapidly developing; the high-tech index Nasdaq is the growth leader that shows us the strong bullish trend. Against this background, even the US negative release on consumer durable goods orders could not spoil the bullish sentiment and after the quotations reduction to the mark of 107.70 we observed the pair strong demand and the position recovery. The pair sharply increased at the end of the yesterday trades.