Fundamental analysis for November 05, 2015

5 November, 2015

Investors continue to wait for the new guidelines. There was a steady growth demand for the dollar yesterday – the US dollar rose against the euro and the yen, the dollar recorded relatively neutral results against the pound at the beginning of the trades still it strengthened against the "cable" in the evening. The dollar was supported by the Janet Yelen speech. Now the number of traders who believe that the Fed will raise the interest rates in December is increasing and it supports the increased demand for the dollar.

The ECB and the Fed monetary policy divergence as well as the ECB President M. Draghi’s expectations pushed the euro for small-volume sales as the market was afraid of verbal intervention. M. Draghi's words did not put strong pressure on the single currency; according to his statements it will be necessary to revise the monetary policy stimulation at the December meeting. He sees downside economic growth and the inflation downside risks.

The British pound was under pressure from the dollar part. The unpleasant moment for the pound could become the UK service sector economic data. We expected the PMI index growth to 54.5 after 53.3 in September and, taking into consideration the market mood, connected with the probability of BoE "hawkish" statements supported the pound.

On Wednesday the Australian dollar strengthened amid the September trade deficit reduction and the retail sales steady growth. The RBA left the interest rate unchanged at the level of 2% at the Tuesday meeting, despite the strong decline expectations in response to the third quarter inflation moderate increase.


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Pound tested 1.3200 and stopped

The buying interest persists in the market. All technical indicators are positive supporting buy orders. The resistance lies at 1.3300, the support comes...

Brent failed to approach 49.50

Sellers kept driving the benchmark lower the whole night and found an obstacle at 48.50. The resistance lies at 49.50, the support lies in at 48.50 dollars...

DAX index turned bearish

The benchmark broke 12600 first and then weakened down to 12527. Bulls returned control in the early European session and returned the price to 12600...


Gold bounced from its upper limit

We expect the spot to retest 1240 in the short-term. Should sellers succeed they may lead the pair down to 1230. If the level stands the spot...

Gold price reached important target

The prices have reached their important target of 1260 and this was only a bounce and a correction of the downtrend...

Dollar setback due to recent PCE date

Today is last day of the month and FED's members speeches are to be announced therefore the market volatility growth is expected...


Gold has jumped to 1265 level

The resistance holds at 1280, support comes in at 1245.9. Major resistance is highlighted at 1295.4. Next target is set at 1350...

Gold prices bounced off

The spot was struggling to build onto the recovery during the night trades. Buyers lost their steam at 1265 where the pair found some fresh offers....

Golld turned around and reversed

The bullish trend remained intact on Tuesday. The price bounced from the upper limit...

  


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