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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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...

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...

  


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