Fundamental analysis for February 08, 2016

8 February, 2016

Fundamental analysis for February 08, 2016

The USA labor market report for January was the main last Friday event. Traders expected the growth slow down to 190 000 from 292 000. However the data came in at the level of 151 000.

Traders have received the European Commission report. The GDP and the inflation short-term forecasts in the Eurozone dropped to 1.7% and 0.5% respectively. The previous inflation assessment was at the level of 1%. That is not very good news for the euro. However, the market is already tuned in to the March ECB policy easing, so the latest Eurozone figures do not bother the EURUSD more than US statistics which has recently been showing not inspiring data and puts threat on the Fed's ambitious plans. By the end of the trades the pair EUR/USD showed a decrease.

The Bank of England lowered its GDP forecasts for 2016 and 2017. The short-term inflation expectations have been reduced amid the low energy prices and the average earnings moderate growth. The regulator has left the monetary policy rate unchanged. All MPC members voted to keep the policy unchanged. According to Carney it is not the time to raise the rates now; still he made it clear that the borrowing costs raise would be the next step in the monetary policy. The oil market upward trend positively impacted the British currency quotations. Nevertheless the trades on the pair GBP/USD closed with a decrease.

The US and Japanese differential government bond yields are reduced which reduces the investing attractiveness in US assets. The pair USD/JPY was traded in a side corridor.


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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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