Fundamental analysis for January 05, 2016

5 January, 2016

Fundamental analysis for January 05, 2016

The last trading day of 2015 was marked by the dollar strengthening against its major rivals. Most of the traders left the market earlier to celebrate the Catholic Christmas and the New Year. The weak US data did not stop the EUR/USD from growth. The weekly unemployment benefits rose by 20K to the mark 287 000. In economic news, the Chicago Fed business activity index came in at 42.9, not much short of the forecast of 49.8.

In the middle of last week, the ECB reported about the November private sector lending growth, the rate was 1.4% in annual terms which is the highest level in the past year. Monday trading was revived due to the planned statistics. The euro area countries published the manufacturing business activity. Germany surfaced the inflation report: 0,3% y/y and -0,1% m/m against forecasted 0,6% y/y è 0,2% m/m. The Germany PMI in manufacturing business came out at the level 53,2 against forecasted 53,0. The pair euro/dollar closed the trades with a decrease.

The UK published money supply report 0,4% m/m against the forecasted 0,5% m/m. The Britain PMI in manufacturing business came out at the level 51,9 against forecasted 52,7. The 10-year UK government bonds yield is growing relative to their counterparts from the US and Germany, which supports the demand for the pound. However, the trades on the pair GBP/USD closed with a decrease.

The US and Japanese government bond yield differential exceeded the level of 200 pp which increases the US assets investment attractiveness. The pair USD/JPY showed a growth by the end of the day.


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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...

EURUSD is having difficulties to go any higher

The dollar fell on Friday amid a light market due to US President's Day. Investors are monitoring the US political situation and waiting for a decision on financial aid to Greece...

  


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