Fundamental analysis for October 26, 2015

26 October, 2015

Fundamental analysis for October 26, 2015

The dollar has sharply grown against all its major opponents last week. The reason for the growth activity was the ECB meeting where they decided the Eurozone monetary policy prospects. The European Central Bank did not change the monetary parameters, however, the governor M. Draghi's "dovish" tone supported the US dollar not only against the euro, but also against other majors. Also the Chinese central bank cut its interest rates to 4.35% which is primarily affected the oil market.

Draghi signaled about his readiness to expand the incentive programs and hinted that this decision may be taken this December.The euro fell after his words against the dollar and other reserve currencies

The British pound also fell against the dollar amid the ECB news, still it suffered fewer losses than its main currency colleagues. Obviously, the pound relative stability was due the fact that even before the European Bank recent reports the UK economic data marked the September retail trade very impressive results. The UK retail sales rose up by 1.9% m/m compared to the previous month, but in annual terms it rose up by 6.5% y/y which was much better than the forecast, it was expected 0.3% m/m and + 4.8% y/y after -0.4% m/m, 3.5% y/y in August.

The Bank of Japan further monetary policy easing continues to put pressure on the yen. The October manufacturing sector business activity index preliminary data was published, the result turned out to be much stronger than the forecasts 52.5 after 51.0 while it was expected to see 50.6. Still this indicator did not have significant impact on the market.


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Brent maintained its ask tone

Sellers continued driving the benchmark lower after a brief pause at 50.80 dollars per barrel...

Gold prices remained in green

The bullish market structure remained in place on Thursday...

Gold prices traded in green

The gold recovery stalled around 1235 dollars per ounce on Monday. Buyers did not find any reason to move the price further. The precious metal was slowly declining...


Brent found a solid support after two day decline

Oil prices slightly rose on Friday morning due to the dollar's retreatment. However, Brent further growth was limited on the news that Russian oil production for February did change comparing to January...

Gold prices slightly fell

Gold prices retreated from fresh highs and spent the day in a consolidation. Sellers drove the spot to 1250 where the precious metal stayed in a tight range during the European session...

Oil prices recovered back

Oil prices rebounded from the oversold zone in the Asian session. Sellers failed to regain 55.50 and gave the way to buyers. Buyers took a chance and had reversed all Friday' losses by the Monday's noon...


Gold reached three-month highs

Spot gold remained on strong bullish footing on Friday. After an Asian flat the price got an upward impetus in the European morning...

The euro is under pressure amid growing concerns

The single currency regained a minor portion of its losses in the Asian session on Wednesday. The pair was able to reach 1.0550. However, the selling pressure around the euro remained unchanged pushing the spot to fresh lows...

EURUSD is having difficulties to go any higher

The dollar fell on Friday amid a light market due to US President's Day. Investors are monitoring the US political situation and waiting for a decision on financial aid to Greece...

  


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