Fundamental analysis for January 06, 2016

6 January, 2016

Fundamental analysis for January 06, 2016

The China stock market drama had a direct impact on the currencies behavior. The China manufacturing sector business activity surfaced the PMI fall to 48.2 vs. expected of 48.9. Ten consecutive month of falling triggered a new wave of concern about the Chinese economy state and its potential impact on global GDP. This fact, coupled with the Middle East conflict escalation where Saudi Arabia broke off diplomatic relations with Iran, provoked a strong wave of risk aversion.

The December Germany preliminary inflation data showed weak results: 0,2% against the forecasted median 0,3%. The USA statistics is disappointing as well. The manufacturing sector ISM has been below 50% for two consecutive months, indicating a business activity slowdown. The index fell to its lowest level since June 2009 in December. The pair euro/dollar showed a decrease.

The UK November number of mortgage approvals in 2015 amounted to 70.4 thousand which is 0.77% more than in the previous month and 18.81% more than in November 2014. That is the mortgage market which is the main growth driver in the real estate sector and in view of the above-described positive momentum we expected the construction sector PMI within the consensus forecast which may provide some support for the Cable. The data came out at the level of 57,8 against the forecasted 56,0. However the pair pound/dollar decreased by the end of the trades.

The world stock indices collapse strengthened safe-haven assets. The main beneficiary was the yen. Still the followed USD buying changed the alignment of forces in the foreign exchange market. Nevertheless, after a slight correction the pair fell again.


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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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