but, isn't all fundamental data thrown into the melting pot and reflected ultimately in price? therefore, one doesn't need to look at fundamentals at all, just at pa? of course it's nice to know about it for interest!
DislikedMoney flows towards expectations of higher yield for obvious reasons.
Recent data out of the US has shown a lower than expected core CPI and falling sales of cheaper new homes, thus lowering expectations of a USD rate increase...dollar negative.
Should the US economy deteorate more rapidly, then equities would plunge and consequent unwinding of the carry trade with rapid strengthening of JPY could result in EUR/JPY falling at a faster rate than USD/JPY in which case EUR/USD would fall.
Today though equities are rising so "Armageddon" will have to wait for another day. My advice would be to always keep one eye on equity prices.
I've been long EUR/USD since Friday's CPI report.
Must admit though that interpretation of data seems to result in changing sentiment by the week!!Ignored
TRADE FOR SWAP