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


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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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