Fundamental analysis for January 22, 2016

22 January, 2016

Fundamental analysis for January 22, 2016

The "black gold" continues to set the tone of the world stock indices and they, in turn, dictate the currencies dynamics. The trading is quite nervous and volatile. The dollar mostly takes positions. The United States published the weekly initial jobless claims report: 293.000 against the forecasted 278.000.

The single European currency still can not take the tenth figure that indicates the strong sellers presence. Despite significant sell-off in global stock markets since the beginning of the year - the euro was able to symbolically strengthen over this period. The risk appetite decrease is the demand for the euro as a funding currency. There was Mario Draghi's a press conference where he had announced CPI forecasts. The euro has fallen off after the ECB President Mario Draghi said that they need to "reconsider" the Bank monetary policy at its next meeting in March, when there will be fresh economic forecasts. Only by the end of the trades the pair EUR/USD strengthened.

According to the November Unemployment Rate it is too early to write off the United Kingdom economy. Moreover, the pound devaluation against the euro and the dollar will boost exports which have a positive impact on the GDP. This factor reduces the US and UK government bond yield differential in the debt market. The pair pound/dollar increased.

Although the yen has strengthened by 2.9% since the beginning of this year we do not see any signal that the downward trend comes to the end. After a slight pause, investors again rushed to get rid of "risky assets". However the pair USD/JPY strengthened by the end of the trades.


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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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