Fundamental analysis for December 04, 2015

4 December, 2015

Fundamental analysis for December 04, 2015

The stable US labor market recovery contributes to the further credit cost growth expectations giving us a hope that the Friday NFP will show a result higher than the predicted forecast of 200 thousand. The dollar’s growth is contributed by the almost first time for ten years Fed rate hike and the regulator’s right course to normalize its policy.

The ECB monetary policy meeting results have been announced. The ECB kept the interest rates unchanged at 0.05%. Mario Draghi reported that the inflation policy was effected having added that the QE would be prolonged until the inflation reached 2%. The regulator noticed as well that the core inflation decreased. The November CPI growth was 0.1%, compared to the same period of 2014. This week Bloomberg surveyed the 53 leading investment banks economists and they all expect the decisive action from the ECB in December. The pair euro/dollar sharply increased by the end of the trades.

The PMI manufacturing and the construction sector releases have disappointed traders with the weak data. The British government bond yields declined relative to their US and Germany counterparts which reduced the investment attractiveness in the British assets. The US Energy Department report has sent oil prices to the knockout. By the end of the day the pair pound/dollar significantly strengthened.

The "risk appetite" growth may put pressure on the Japanese yen as a funding currency. The market is full with a large number of buyers. The ECB decision to stimulate the euro zone economy has caused the demand for the Old World risky assets. Investors usually respond positively to the monetary policy easing. However, the pair dollar/yen decreased.


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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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