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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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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