Fundamental analysis for February 02, 2016

2 February, 2016

Fundamental analysis for February 02, 2016

The USA contradictory statistics could not undermine the dollar's strength. According to the preliminary data, the USA economy grew by only 0.7% in the fourth quarter against the forecast of + 0.8% and the previous value of 2.0%. Meanwhile, the personal consumption expenditures index rose in line with expectations at 1.2%. The Michigan consumer confidence index fell to 92.0 against the forecast of 93.0 and the previous value of 93.3. In general, the economic picture is rather mixed. The recent Fed announcements that the country economy slowed down prepared the market to weak GDP data.

The January euro zone moderately positive inflation release cooled the bears' ardor who tried to play the card of a future monetary policy easing by the ECB in March. The US manufacturing sector ISM was also expected with negative data. The index came in at the level of 48.2 against the forecasted 48.1. By the end of the trades the pair euro/dollar strengthened.

According to the CBI the negative industrial orders balance dynamics signaled that the production sector PMI report could be worse than the consensus forecast. However the data came in better then forecasted median: 52.9 against 51.8. The pair pound/dollar sharply increased by the end of the trades.

The Bank of Japan became the chief newsmaker last week when the Bank had introduced a negative interest rate the first time in its history. According to the BoJ this rate will remain until the regulator sees a stable inflation rate of 2% per year. The pair dollar/yen slightly decreased by the end of the trades


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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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