Fundamental analysis for January 11, 2016

11 January, 2016

The Chinese market collapse for more than 7%, the Chinese stock exchanges trading suspension, cheap oil – all these factors supported the euro and the yen. The dollar experienced difficulties with a growth amid the global markets negative sentiment, the Fed soft minutes as well as the weak labor market data. The US issued the employment outside agricultural sector release. The data came higher than expected 200 thousand. The number of employees amounted to 295 thousand.

The struggle between the major competitors, the euro and the dollar, is continued. We believe that the euro current growth looks more like a temporary correction while the dollar remains on a horse. The pair received almost no support from the macroeconomic data which had the mixed background. By the end of the trades the pair euro/dollar increased.

The pound was the main outsider among the main currencies. The Cable has recently been quite sensitive to the oil prices drop which has fallen to 11-year lows. The Sterling slightly corrected after the weak USA data, in general, the pair remains under strong pressure. The UK published the trade balance: -10,64B against the forecasted -10,50B. The pair pound/dollar closed the trades with a decrease.

At the same time Japan did not publish important reports. The dollar dynamics is the main driver for the yen. The pair USD/JPY sharply fell by the end of the trading 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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