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 reached its monthly high

The pound remained in an upward channel on Tuesday. The price pulled back from its upper limit...

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...

  


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