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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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...

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...

  


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