Fundamental analysis for January 26, 2016

January 26, 2016

The preliminary Eurozone business activity data came in worse than expected, in fact, the release pointed to a clear deterioration. We believe that report was not a reason for the euro weakening, as it is necessary to wait for more definitive data. The main reason was the Dragi’s performance who hinted at the possible quantitative easing program expansion.

The debt market still shows an increase optimism regarding the British assets. The EUR/GBP long positions closure, after the ECB meeting on January the 21st , plays into the Sterling bulls hands. The UK December retail sales fell by 1.0% against the forecast of -0.1%.

The Japanese yen has safely returned to the strategic range of 118.40-120.70 which has been controlled by the BoJ entire 2015. Still the BoJ recently moved away from the yen control, focusing on the general economy problems. According to the Finance Ministry the December exports continued to decline. Many economists believe that the Chinese economy weakening is a reason of this decline. Still the yen disregarded this report.

The oil market strengthening is a welcome factor for the commodity currencies. However, last Friday “black gold” growth did not support the Australian and New Zealand dollars.

Publication source
Fort Financial Services information  Fort Financial Services reviews

October 21, 2016
EUR/USD remained unchanged after the ECB
The price maintained its bearish tone on Thursday. The EUR/USD pair stayed around its recent lows during the day. The euro slightly strengthened towards 1.1000 ahead of the US opening. The 50-EMA limited the euro recovery in the 1 hour chart...
October 21, 2016
Decisions on QE Postponed until December
Asian stock markets are narrowly mixed, with Japanese bourses managing marginal gains as the Yen falls against the Dollar. Stock futures in the U.S. are down...
October 21, 2016
EURUSD at $1.09, but declines could be limited
The ECB monetary policy meeting yesterday saw the euro give up its intraday gains to close on a bearish note. As Draghi signaled that the central bank would need time to assess the monetary policy situation...

OANDA Rating
FBS Rating
XM Rating Rating
FXCM Rating
Orbex Rating

TropicalTrade Rating
365BinaryOption Rating
Porter Finance Rating
EZTrader Rating
Grand Option Rating
Empire Option Rating