Fundamental analysis for February 24, 2016

24 February, 2016

Fundamental analysis for February 24, 2016

The dollar started the week with strengthening against its rivals. The US currency and the stock assets grew together amid oil prices rising. The dollar was slowed down a bit by Markit Manufacturing PMI for February that had fallen to its lowest level of 51.0 since October 2012. The previous value was 52.4 and the forecast was 52.3.

The German's GDP in the 4th quarter increased by 0.3% compared with the previous quarter, which corresponds to the growth rate in the 3rd quarter. This figure confirmed the preliminary assessment. Thus, the GDP growth rate amounted to 1.1% in annual terms. By the end of the trades the pair EUR/USD slightly strengthened.

The GBPUSD fell and the reason of its fall was the potential Brexit. The aggressive pound selling was Mayor of London Boris Johnson's statements, where he supported the British exit from the EU. The Prime Minister David Cameron confirmed the holding of a referendum on 23rd of June this year. In light of these developments Citibank raised its estimate of the Brexit probability up to 30-40% from 20-30% previously. The pair GBP/USD sharply fell to the new minimums.

The Bank of Japan governor Haruhiko Kuroda said on Tuesday that he saw no direct connection between the monetary base increase and the inflation expectations. Still we believe that Kuroda overestimated the impact of monetary policy major changes on public opinion. The pair USD/JPY is consolidating.


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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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