Fundamental analysis for February 26, 2016

26 February, 2016

Fundamental analysis for February 26, 2016

The weak US data gave the euro strength by pushing the dollar down. According to the preliminary data, Markit Services PMI for February reached the level of 49.8 against the forecast of 53.5 and the previous value of 53.2. Meanwhile, the primary housing market sales fell by 9.2% against the expected slow decline to -4.4%. The United States published Initial Jobless Claims (272000 against the forecasted 270000), Housing Prices (0,4% m/m against the forecasted 0,5% m/m), Orders for durable goods (1,8% m/m against the forecasted 0,2% m/m) reports.

The demand decreased on euro amid: oil prices falling, fears of China's banking system corruption, as well as talking about Brexit. In the same time, British possible exit from the EU sent the pound to multi-year lows, pressing the euro as well. Traders did not use the euro as a safe haven due to speculation about the potential breaking of the European Union after the UK leaving the alliance. Only by the end of the trades the pair euro/dollar slightly strengthened.

The pair GBP/USD was under pressure amid the possible UK exit from the EU. The market was volatile in anticipation of the UK GDP data for Q4. Traders expected a growth by 0.5%. In fact, the second GDP estimate came in at 0.5% q/q and + 1.9% y/y. The pair pound/dollar is consolidating.

The yen strengthened again in a new wave of risky assets sales this week. However the dollar showed a growth against the yen on Tuesday’s trades.


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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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