Fundamental analysis for January 29, 2016

29 January, 2016

Fundamental analysis for January 29, 2016

The US Federal Reserve is concerned about the financial market turbulence. The Fed statements did not have any effect neither on the EUR/USD pair nor the other assets.

The EUR/USD trades were restrained yesterday - investors continue to evaluate the Fed two-day meeting results, the first one in the new year.

Germany has surfaced the inflation preliminary data whose growth rate may accelerate from 0.3% to 0.5%. The ECB is cautious about its quantitative easing program, as the Germany inflation dynamics is relatively well. The data came in at the forecasted median. By the end of the trades the pair euro/dollar showed a growth.

The Initial Jobless Claims number showed - 278000. The forecast was 282000. The labor market is relatively stable, even though all visible signs of long-term unemployment growth are seen which has a negative impact on the overall unemployment level. In addition, the expected durable goods declined by 0.6%. However the decline was 5.1%.

Yesterday the UK 4th quarter GDP was published. The GDP growth rate was 2.27% for the first nine months of 2015, as it was forecasted. It is worth noting that the first nine months of 2014 the growth rate was 2.87% which indicates the UK economic slowdown phase. The data came in at the forecasted median. The pair pound/dollar increased by the end of the trades.

The USD/JPY pair is still trading in a narrow channel. However, concerns that the Bank of Japan will announce the next mitigation measures at the end of the two-day meeting are putting pressure on the yen. Japan published the retail sales which decreased by 1.1% in comparison to the same period in 2014.


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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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