Fundamental analysis for January 04, 2016

4 January, 2016

Fundamental analysis for January 04, 2016

There was a mixed trend at the Forex market last trading week of the year, some pairs even showed an increased volatility in their trading. The dollar resumed its growth against its competitors, having received support from the positive sentiment in the stock markets as well as strong data from the US. In general, traders’ activity continued to fall on the eve of the New Year holidays.

The dollar purchases alongside with the stock markets positive sentiment and favorable statistics from the United States became the driver for the EUR/USD downward dynamics resumption. In particular, prices, contrary to the predictions, kept the growth rate of 5.5% and the consumer confidence in December jumped to 96.5 versus the expected 93.8 and the previous value of the index at 90.4. The recent figures again indicated that the US economy is in great shape and is ready to tighten monetary policy further even more rapid pace.

As for the pair GBPUSD, the pound decreased amid the Cable fundamental weakness due to the recent sharp deterioration of macroeconomic data (inflation slowdown, the GDP decline), which has taken away from the markets hope for a rate hike by the Bank of England next year. The pair pound/dollar slightly corrected upwards by the end of the trades.

The USDJPY showed the most restrained dynamics. The pair’s movement is limited by the resistance around 121.30 and the support at 120.40 area. However, even strong statistics from the United States was unable to revive the pair.


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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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