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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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...

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...

  


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