Fundamental analysis for February 05, 2016

5 February, 2016

Fundamental analysis for February 05, 2016

This week trading showed an increased turbulence, the dollar has collapsed on all fronts. This week has been the worst one for the dollar in the last 7 years. The USA macroeconomic statistics keeps coming out negative, the commodity market is showing growth which traditionally has a negative impact on the dollar value.

The US published the Initial Jobless Claims number (285000 against the forecasted 280000), the Unit Labor Costs (4,5% against the forecasted 3,9%) and the Factory Orders (-2,9% against the forecasted -2,8%). Today all traders’ attention will be focused on the NFP.

The EUR/USD set a fresh 3-month high. The ECB published its meeting minutes. According to Mario Draghi if the Bank decided to prolong the stimulus measures the side measures wouldn’t be an obstacle. The trades on the pair EUR/USD closed with a growth.

The pound reached the 45th figure in the background of moderately positive Markit Services PMI. The January index figure is lower than the annual average which does not allow us to count on the growth acceleration in the leading sector of the UK economy. On Thursday, all of the players' attention was focused on the Bank of England meeting. Traders did not expect any surprise paying attention to the regulator assessment of the economic situation in the country and the monetary policy perspective. The BoE kept the interest rates unchanged at 0.50%. By the end of the trades the pair pound/dollar slightly fell.

Lack of demand for "risk assets" plays into the USD/JPY bears hands. Investors are concerned that the US GDP in 2016 could grow less than 2.4% - such forecast was voiced at the Fed December meeting. These concerns are caused by the weak manufacturing and the service sectors ISM. The pair dollar/yen showed a decrease.


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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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