Fundamental analysis for January 12, 2016

12 January, 2016

Fundamental analysis for January 12, 2016

The US dollar again showed mixed dynamics against its major rivals, having shown weakening against the yen the sixth day in a row. In general, there was an attempt to restore the US currency positions amid the global markets improved sentiment. Last week the Chinese government decided not to suspend trading anymore that helped stock indexes to recover. This fact played into the dollar hands against the euro, still the pair loss appeared to be symbolic. At the same time unexpectedly strong USA employment report has not given to a greenback a substantial support.

The low inflation expectations, combined with the Chinese problems can make FOMC refrain from monetary policy tightening at the meeting on 27th of January, which will deprive the US dollar strong support. Yesterday the trading was defined by risk appetite amid lack of macroeconomic statistics. After a slight correction growth the pair euro/dollar decreased.

The British pound finished last week in the "red zone", still the smooth sterling devaluation is a positive factor for the United Kingdom economy. The UK trade balance release again points to the “strong pound” negative effect: the deficit amounted to 10.64 billion pounds in November which is by 1.08% more than in the same period in 2014. The pair pound/dollar decreased on Monday.

The major stock indices in Asia, Europe and North America lost more than 6% at the end of last week. The trend is in favor of the Japanese yen in the credit market: the yield differential of 10-year US and Japanese government bonds is decreasing that may attract investment to the US assets. The pair dollar/yen showed a decrease


Source link  
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...

  


Share: