Fundamental analytics

USD dollar seized the initiative, but can not develop success

The period of good statistics from Germany, starting with PMI data released last week through factory orders and industrial production figures - ended today with disappointing data from the July ZEW index. The assessment of the current situation decreased to 72.3 from 80.6 in June. The index continued the decline, which began in February after it reached 95.2 in January. The fall in the July indicator is the largest in for some time. It is at the lowest level since 2016 December.

The euro is trading under some pressure, yesterday EUR / USD approached the $ 1.1800 mark. The disappointing data from Germany provoked a profit-taking that drove the market lower, forcing the euro to drop to a minimum session of about $ 1.1715. The level is quite attractive for medium-term longs and it led to some upward pullback in the pair. Although it is obvious, that Wednesday session will remain behind the US dollar.

Lower $ 1.1679 zone corresponds to the Fibonacci level of 38.2% and seems to be a strong support. In addition, not far from this mark is the 200th moving average.

Gaining stocks and higher yields stimulate the market to raise the dollar against the yen. The dollar marked a new local maximum against the yen around JPY111.20. This is the highest level since May 21.

In America, equity markets opened positively and indicated the potential to move higher. It seems that Tuesday will be another green day for US markets amid lower risks of trade contradictions between the US and China.

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