Fundamental analysis for January 26, 2016

26 January, 2016

Fundamental analysis for 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.


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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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