31, October 2014

Fundamental analysis

EUR/USD (a 4-hour chart)

The day was marked by an increased volatility - traders delayed the two-day meeting announcement by the US Federal Reserve. The monetary regulator announced the QE-3 program completion as it was expected.

The Fed repeated a familiar phrase to all investors about the need to keep rates low for an "extended period of time". The short-term inflationary forecast remains negative because of the lower energy price and other factors. The monetary regulator did not explain what these factors could be. It is quite possibly be the dollar revaluation; however, the monetary authorities have not answered.

The labor market progress was not reviewed - the Fed pointed to the steady employment growth that in future can contribute to the rapid rates increase. As traders did not hear the phrase that monetary authorities are concerned about the "strong dollar" - they hurried back to the market and began to buy the US currency.