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.
ECB's key rate has been maintained at the current level, which was the expected decision and the focus of the markets was on the press conference with Mario Draghi.
On Wednesday the EUR/USD pair is trading down, despite the flat statistics and the absence of negative news.
The struggle with low inflation in the euro zone is becoming increasingly difficult.
The economic situation in Italy remains difficult.
On Tuesday afternoon, the main currency pair is trading slowly, despite the flow of statistics and a positive attitude on the European markets.
A miracle did not happen and according to recent data, inflation in the euro zone in June has not changed and remained at last month’s level of 0.5%, although it was expected to rise to 0.6%.
On Monday the position of the domestic currency is expectedly weak: the tax period is over, oil prices are falling and the stock markets are "disheartened."
On Monday afternoon the EUR/USD is trading on the upside, ignoring the statistics on inflation and waiting for the data stream coming this week.