Fundamental analysis for January 27, 2016

27 January, 2016

The United States can please traders with a Conference Board positive report. The January Michigan University consumer confidence indicator came in at fresh 6-month high amid real incomes growing expectations. The average earnings growth was 2.5% at the end of 2015, with an inflation of 0.7%. Thus, the population real incomes increased by 1.78% while the real incomes increased by 0.99% in 2014. Positive data would support the US currency and we do not ignore the "risky assets" demand dynamics.

The euro significant strengthening against the dollar was the result of several factors. The very first one is the upcoming Fed meeting today. Traders believe that the FED will not increase the refinancing rate and that decision may weaken the dollar. The Fed will monitor the macro-economic dynamics that demonstrates albeit sluggish, but a growth. The second factor is government debt securities yields growth where the three month bills yield increased from 0.255% to 0.305%.

We think that bulls can take a break and we will see a gradual pound decline. The Bank of England left the rate unchanged. Mark Carney, the Bank Governor said that there was no reason to do it. They are ready to reconsider the current situation when the country economy shows a stable growth.

The yen continued to strengthen against the US dollar when the Japanese Finance Minister Taro Aso supported the Bank position and its intention to act if needed. The main Bank of Japan target is the inflation rate of 2%. Aso expressed the hope that the regulator would continue its efforts to achieve the price stability, taking into account the economic and price conditions.


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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...

Gold prices slightly fell

Gold prices retreated from fresh highs and spent the day in a consolidation. Sellers drove the spot to 1250 where the precious metal stayed in a tight range during the European session...

Oil prices recovered back

Oil prices rebounded from the oversold zone in the Asian session. Sellers failed to regain 55.50 and gave the way to buyers. Buyers took a chance and had reversed all Friday' losses by the Monday's noon...


Gold reached three-month highs

Spot gold remained on strong bullish footing on Friday. After an Asian flat the price got an upward impetus in the European morning...

The euro is under pressure amid growing concerns

The single currency regained a minor portion of its losses in the Asian session on Wednesday. The pair was able to reach 1.0550. However, the selling pressure around the euro remained unchanged pushing the spot to fresh lows...

EURUSD is having difficulties to go any higher

The dollar fell on Friday amid a light market due to US President's Day. Investors are monitoring the US political situation and waiting for a decision on financial aid to Greece...

  


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