Fundamental analysis for February 10, 2016

11 February, 2016

Fundamental analysis for February 10, 2016

The traders concerns about the world economy growth slow down in general and the energy sector's fate in particular caused a new wave of stock indices selling. The threat of large slate companies bankruptcy alongside with the Deutsche Bank problems whose shares have fallen to the record lows, discouraged investors from trading with high-risk assets.

The Germany industrial production and trade balance weak data for December once again supported our assumptions that we should not count on the euro significant increase in the medium term. The industrial production volume decreased by 2.2% while it had shown growth of 0.8% in 2015. In this regard, we see a steady negative trend and it is not highly profitable to have a strong euro. The pair EUR/USD closed the trades with a decrease.

The UK published the industrial production release for December. The index came in at -1.1% m/m. The pair GBP/USD quickly left the lows, despite the weaker-than-expected manufacturing industry data. The pair GBP/USD slightly increased.

Janet Yellen speech to Congress is this week key event. Her attitude about the economy state and the monetary policy future shall determine the further prospects of the dollar which has recently weakened. The pair USD/JPY fell by the end of the trades.

According to Janet Yellen there are risks in the US economy which may slow down their plans to increase the interest rates in short-term. The economic China upheavals leave a negative impact on the US economy and the traders' inflation expectations continue declining. The Fed chairman did not talk about the possibility of a later interest rates increase, still the mentioned risks made her tone soft highlighting concerns about the Fed rate hikes this year.


Source link  
Mixed sentiment takes on in Asia

Asia markets were mixed on Monday, following a strong lead from Wall Street last week as market players looked ahead to fresh economic data, while...

Euro is firm at current levels

The preliminary estimate of the consumer price index in November rose to 1.5% from 1.4%. The data turned out to be less than expected...

Gold reversed some losses

The softer tone in the US Dollar allowed gold prices to reverse some losses. Buyers broke the upper limit of the selling channel and almost...


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...

  


Share: