Fundamental Analysis – Page 26

June 27
2018

EUR/USD Declines for Second Day As Trade War Fears Persist

EUR/USD declined for the second consecutive session today even after US President Donald Trump avoided imposing the harshest possible measures against China in the escalating trade war. While markets responded positively to the news, there were concerns that investment curb will touch not just China, but other countries as well, including European ones. US data released today was mixed, meaning it did little […]

June 26
2018

EUR/USD Declines Under Weight of Trade War Fears

EUR/USD declined today as the threat of trade wars continued to weigh on markets. Today’s US data did not provide a direction to the currency pair because it was mixed. The housing and consumer confidence reports were underwhelming, while the manufacturing data was surprisingly good. S&P/Case-Shiller home price index rose 6.6% in April, year-on-year, missing the average estimate of 6.9% and slowing from the previous month’s 6.7% rate of growth. Month-on-month, the index […]

June 25
2018

EUR/USD Rallies After Intraday Drop

EUR/USD fell today, dragged down by fears of a trade war between the United States and the European Union as well as by mixed macroeconomic data in the eurozone. Yet the currency pair managed to bounce afterwards and remained stable after the US housing report. New home sales were at the seasonally adjusted annual rate of 689k in May, missing traders’ expectations of 665k. Meanwhile, the April figure got a negative revision from 662k to 646k. (Event A on the chart.) […]

June 21
2018

EUR/USD Reverses Losses, Boosted by Weak Manufacturing Index

EUR/USD was falling during the current trading session but managed to reverse its losses. The rebound gained momentum after the Philadelphia Fed reported that its manufacturing index fell this month much more than was expected. The US leading indicators also provided an unpleasant surprise, and unemployment claims was the only decent indicator released in the United States today. Philadelphia Fed manufacturing index fell from 34.4 […]

June 20
2018

EUR/USD Recovers After Diving Intraday

EUR/USD fell intraday during the current trading session but managed to bounce by now. The currency pair was under influence of various factors, including US tariffs and planned retaliation to them from the European Union, the speech of European Central Bank President Mario Draghi, and the positive surprise from the German Producer Price Index. As for US macroeconomic data, it was mixed. Current account balance logged a deficit of $124.1 billion in Q1 […]

June 15
2018

EUR/USD Recovers As US-China Trade War Intensifies

EUR/USD rebounded a bit following yesterday’s big slump, though the rally was not nearly enough to erase losses posted during yesterday’s session. The dollar was relatively weak today due to an intensifying trade war between the United States and China. The USA announced new tariffs on Chinese imports, and China promised to respond in a similar manner, imposing levies on US goods. NY Empire State Index climbed from 20.1 to 25.0 […]

June 14
2018

EUR/USD Crashes as ECB Promises No Rate Hikes in 2018

EUR/USD was gradually rising today but crashed after the European Central Bank signaled that it is not going to raise interest rates this year. (Event A on the chart.) US macroeconomic indicators released in the United States afterwards were good across the board, giving no reprieve for the currency pair. Retail sales rose 0.8% in May from the previous month, two times the forecast increase of 0.4%. The April increase […]

June 13
2018

EUR/USD Crashes Following FOMC Hike, Surges Afterwards

EUR/USD tumbled today after the Federal Open Market Committee hiked its main interest rate and updated its economic projections, predicting four hikes in total this year. Yet, surprisingly, the currency pair has recovered extremely quickly and is now trading far above the opening level. PPI rose 0.5% in May, seasonally adjusted, beating the average forecast of 0.3% and the previous month’s increase of 0.1%. (Event A on the chart.) US […]

June 12
2018

EUR/USD Higher Ahead of FOMC Meeting

EUR/USD rallied today as traders were anticipating that the Federal Open Market Committee will announce an interest rate hike tomorrow. Today’s strong inflation data supported such outlook. The European Central Bank and the Bank of Japan will also make policy announcement later this week. Meanwhile, the meeting between the US and North Korean leaders ended with a pledge of friendship and steps toward denuclearization of the Korean peninsula, putting markets […]

June 8
2018

EUR/USD Drops on Eurozone Data, Trims Losses Later

EUR/USD fell today on poor macroeconomic releases in the eurozone and concerns about potential outcome of the upcoming Group of Seven meeting, though the currency pair has managed to reduce its losses by now. As for US releases, the data was not impressive either. Wholesale inventories rose 0.1% in April. Experts had expected no change, the same as in March. (Event A on the chart.) Yesterday, a couple of reports were released (not shown on the chart): Seasonally adjusted […]