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.
The decision of the Reserve Bank of New Zealand to raise interest rates was positively received by investors, the regulator gave promising signals.
The Eurodollar’s unhurried decline continues, and because no important macroeconomic news have been published, the market continues to win back the easing policy of the ECB.
The Eurodollar resumed its decline – most likely, the beginning of the struggle with low inflation from the ECB and the sufficiently strong report on the U.S. labour market finally inspired the bears go into "new exploits".
The AUD/USD pair is traded upward, having received support in the form of morning statistics and positive investor sentiment.
On Tuesday the main currency pair is once again under pressure, and for now the euro has no reason for recovery.
On Monday the USD/JPY pair traded in a slightly declining range, although reactions to a strong report on Japan's GDP could be more pronounced.
This Monday morning the main currency pair is trying to grow in a quiet market, using a tranquil background as a prop.
The ECB decided to take the unprecedented step and lowered the deposit rate to a negative level of -0.10%.