Fundamental analysis for January 18, 2016

18 January, 2016

Fundamental analysis for January 18, 2016

The market was quite volatile last Friday, still in general it tends to the dollar strengthening. The heterogeneous movement was mainly due to the stock and commodity markets instability. Besides the market sentiments, the currency dynamics was influenced by the European and the UK Central Banks while the macro data remained practically unnoticed.

The German 2015 GDP is encouraging. The GDP growth was 1.7% due to the personal consumption, the government spending and the investment growth. The positive data have helped to reduce the yields differential on the US and Germany government bonds. The Eurozone published the November trade balance. The data came in at the level 23,6B. By the end of the trades the pair euro/dollar decreased.

The debt market reacted to the British monetary authorities statements by the government bonds yields lowering in relation to its US and Germany counterparts. That fact, of course, reduces the investments attractiveness to the British assets. The Bank of England posted the Credit Conditions Survey. The pair pound/dollar fell by the end of the trades.

The demand for risky assets keeps growing which is a negative factor for the Japanese yen as a funding currency. One of the last Friday key events was the USA retail sales report (-0,1% against the forecasted 0,2%) where the producer prices (on the forecasted level of 0,2%) and the Michigan University consumer confidence index (93,3 against the forecasted 93,0) were announced. The pair dollar/yen closed the trades with a decrease.


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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

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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...

  


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