Fundamental analysis for February 17, 2016

17 February, 2016

Fundamental analysis for February 17, 2016

The dollar started the new trading week on a positive note. The US currency purchase supported the positive sentiment for the world stock exchange. Even China's return to the market after long holidays did not spoil that sentiment. The imports and exports volume from China decreased by 18.8% and 11.2%, respectively in January.

The banking sector shares outperformed the market in Europe. Investors' "risk appetite" was growing which is a negative factor for the euro as a funding currency. Germany has published the ZEW Survey - Economic Sentiment for February. The index showed 1.0 (the previous value was 10.2; the forecast was 3.2). The pair euro/dollar fell.

The UK published the inflation report for January. A strong labor market pointed out that CPI growth (in annual terms) could be a little better than the consensus forecast (0.4%). The unemployment rate for November decreased by 5.1%, while wages increased by 1.02%. However the CPI came in at the forecasted median 0,3%. By the end of the trades the pair pound/dollar sharply fell.

The Japanese negative macroeconomic statistics keeps showing correction. GDP decreased by 0.4% in the fourth quarter. The volume of industrial production has been reducing for the second year in a row and the negative trend accelerated from 1.91% to 2.49% in 2015. The sharp yen's strengthening, that we saw in the beginning of the year, carries additional risks to the Japanese economy. The pair dollar/yen is consolidating after 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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