Fundamental analysis for January 19, 2016

19 January, 2016

Fundamental analysis for January 19, 2016

The foreign exchange market showed a high volatility last week that reduced on Monday. The main volatility driver was another world stock exchanges collapse that happened after the oil price sharp decrease. However, the US reports have not gone unnoticed. The retail sales data were extremely weak which had increased pressure on the dollar. The retail sales declined by 0.1% m/m in December vs. the forecast of 0.0%. The previous value was 0.2%. The manufacturing sector business activity indicator fell to 19.37 from 6.21 while the expected slowdown was 4.0.

The United States was on a day off celebrating Martin Luther King Day. As a result there was a low volatility during the American session.

The Eurozone pleased the market with the trade balance strong data. Net exports increased by 23.6 billion euro in November which is 17.4% more than the year before. The trade surplus growth rate remained at 7.58% in October 2015. We see the growth rate acceleration which is a positive factor for the euro zone GDP. The pair euro/dollar slightly decreased.

There has not been published any important macroeconomic statistics in the UK, traders paid their attention to the debt market dynamics. The 10-year UK government bonds yield has been reduced relative to their US and Germany counterparts, thereby putting pressure on the pound. By the end of the trades the pair pound/dollar decreased after a growth.

Traders avoid investments into the risky assets preferring the Japanese yen as a funding currency. However the pair USD/JPY showed a slight growth on Monday.


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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...


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...

  


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