Fundamental analysis is a method of evaluating what is happening on the market right now and might happen in the future on the basis of external events and factors. For the currency market, such factors are news, economic and financial statistics, meetings of global Central banks, and speeches delivered by their representatives. Fundamental approach allows to analyze both short- and long-term perspectives.
Yesterday the head of the Federal Reserve Janet Yellen upset the markets - the weak business confidence statistics from the ZEW in Germany and the euro area failed to do this, but the comments from Yellen "drowned" the Eurocurrency.
Today’s strengthening of the GBP/USD pair perhaps overlaps the pessimism of the last four sessions.
Monday did not bring anything good for the euro zone – the economic expectations index calculated by ZEW, updated the yearly lows.
The currency of the country of the rising sun continues to retreat and weakens for the third trading day in a row.
The EUR/USD managed to gain a foothold before noon on Monday, without waiting for the publication of statistics on industrial production in the euro area in May.
Following the negative statistics on industrial production in individual euro-zone countries, the pan-European statistics collapsed - May data sank by 1.1%, while last month’s figure was revised in the negative direction from 0.8% to 0.7%.
In recent weeks, a kind of trend has formed - European statistics come out with much worse than expected values.
The euro/dollar once again finds reasons to gradually climb higher with an empty macroeconomic calendar and a peaceful external background. Trading volumes in the instrument are still below the average level, but the fact remains that this week the euro/dollar has strengthened.