Fundamental analysis for February 25, 2016

25 February, 2016

Fundamental analysis for February 25, 2016

Tuesday was marked by the dollar strengthening against all European currencies. The dollar grew despite the sentiment drop of global investors. The USA published Markit Services PMI (49,8 against the forecasted 53,5), Markit PMI Composite (50.1 against the previous 53.2) and New Home Sales (494K against the forecasted 520K) reports.

The Eurozone did not publish important news, and therefore traders' attention was entirely directed to the stock indices. The pair euro/dollar slightly strengthened by the end of the trades.

The UK released BBA Mortgage Approvals (47,5K against the forecasted 45,5K) and CBI Distributive Trades Survey for February. (10 against the forecasted 12) In addition, the pound depends on news about Brexit now. The survey results before the referendum may lead to increase volatility of GBP/USD. The pair pound/dollar continued the downward movement.

The Bank of Japan governor statements supported the yen. According to Kuroda the accelerating pump of money into the economy will not increase expectations of future price increase. The current monetary policy has limits and it can revive the economic growth just to some extant. The market became more caution after China's decision to set a lower rate for the yuan, although most traders expected it to remain unchanged during the finance ministers and central bank governors meeting ("Big Twenty") this week. The pair dollar/yen decreased.


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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...

Gold prices remained in a consolidation phase

Sellers led the spot to 1250 the other day but failed to break below the level. The price remained sandwiched between 1250 - 1255...

DAX grew amid a fresh buying interest

European stocks opened in green when markets recovered from Trump’s failure in Congress. Investors focused on Brexit...


Pound reached its monthly high

The pound remained in an upward channel on Tuesday. The price pulled back from its upper limit...

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...

  


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