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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Gold prices remained in a consolidation phase

Sellers led the spot to 1250 the other day but failed to break below the level. The price remained sandwiched between 1250 - 1255...

DAX grew amid a fresh buying interest

European stocks opened in green when markets recovered from Trump’s failure in Congress. Investors focused on Brexit...

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...

  


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