Fundamental analysis for February 19, 2016

19 February, 2016

Fundamental analysis for February 19, 2016

The major pairs remained volatile without excessive nervousness. The FOMC’s minutes did not spring any surprise. The minutes’ tone was restrained with a pessimistic tone. The regulator pointed at the growing risks concerning the economy, having stressed that the current information was insufficient for a full risk assessment. The US published Initial Jobless Claims for February on the level of 262K (the previous value was 269K; the forecast was 275K).

We noticed some capital flow into "risky assets" this week, which was a negative factor for the euro as a funding currency. In the credit markets, the 10-year German government bonds yield decreased in relation to their counterparts (the USA and the UK) which reduced the investments attractiveness in European assets. The pair euro/dollar decreased.

Britain failed to deliver strong data to the investors about the labor market. Unemployment and average earnings indicators for December remained at the previous levels. The unemployment level of differential rates in Great Britain and the United States remained the same. The pair pound/dollar fell after a growth.

The appetite for risk kept growing in financial markets which put pressure on the Japanese yen as a funding currency. By the end of the trades the pair dollar/yen slightly fell.


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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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