Fundamental analysis for February 18, 2016

22 February, 2016

Fundamental analysis for February 18, 2016

Despite positive stock markets sentiment and good USA labor market data the dollar failed to grow. Investors were also pleased with the lack of negative reports from China, where the inflation reached the forecasted level. The Fed's meeting minutes released on Wednesday impacted the dollar as well. The regulator's soft tone was interpreted by traders as another retreat from December's plans.

The ECB minutes pointed that the inflation would remain at low levels. Mario Draghi said the ECB was ready to implement additional monetary policy easing at the next meeting on March 10th. We again got the divergent expectations of a policies change of the two central banks. By the end of the trades the pair euro/dollar slightly increased.

The UK published retail sales release for January at the level of 2,3%m/m and 5,2%y/y against the forecasted 0,8%m/m and 3,6%y/y. The positive trend in the labor market allows us to expect retail sales growth compared with the previous month. An increase of wages was recorded in the UK during the period from November to December last year. The pair pound/dollar showed a growth by the end of the trades.

The OECD lowered its growth forecast for Japanese GDP to 0.8% from 1.0% in 2016. The Japanese yen strengthened against the dollar by 5.1% since the beginning of this year. That fact reduced the national products competitiveness in foreign markets. The trade deficit in Japan amounted to 645.9 billion in January, which is 5 times more than in the last quarter of 2015. The pair dollar/yen closed the trades with a decrease.


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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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