Fundamental analysis for December 16, 2015

16 December, 2015

Fundamental analysis for December 16, 2015

The single European currency decline is a positive factor for the German economy as the weak euro supports the net exports growth. The ZEW index has been published. The data came out at the level of 16,1, that is better then forecasted 15,0. The German industrial volume output has fallen by 0.91%, it declined by 0.27% for the same period in 2014. The core inflation grew by 2% on an annualized basis that is a positive factor for the dollar after the Fed total monetary policy meeting results publication. The US and the German government bond yields have decreased which played into the "bears" hands. By the end of the day the pair euro/dollar decreased.

The November UK and the US inflation reports became the determining factor for the GBP/USD pair. The data in Britain came out at the forecasted level of 0,1%. The data in USA came out also at the forecasted level of 0,2%. Today FED will make its verdict on the monetary policy. We expect a high volatility. We noticed that both economies show the similar tendency: the population employment and incomes growth contributes to the private consumption that happening against the petroleum products price lowering. The oil market sales caused the UK government bond yields decline which in turn is a negative factor for the British currency as it reduces the investments’ attractiveness into the British assets.

The USD/JPY bulls tried to develop an upward correction in the US stock market; still their efforts have not brought the desired dividends. The NASDAQ and the Russell 2000 were the decline leaders which signaled about the lack of investors’ appetite to take risks. However the pair dollar/yen sharply increased after a decrease.


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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...

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...

  


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