Fundamental analysis for February 29, 2016

29 February, 2016

Fundamental analysis for February 29, 2016

The US GDP for the fourth quarter was the key event last Friday (1,0% against the forecasted 0,4%). Earlier, the dollar lost ground, despite the durable goods orders positive release. The index jumped by 1.8% after falling by 1.2% in December.

Last Friday the G20 summit started its work in Shanghai. The problems with China, monetary policies coordination as well as world economy stimulation will be discussed in the meeting.

In economic news, German Finance Minister Schaeuble said in his speech that the space for monetary policy seems to be exhausted. According to him it was necessary to continue applying the financial regulation and to make the market less volatile. He also supported the idea to continue structural reforms. The pair euro/dollar sharply fell.

The main drivers for the pair GBP/USD were: Brexit and the British regulator's current monetary position. The pound reached seven-year lows last week. The currency weakening happened after some new forecasts, according to which the British currency might fall if the British citizens would vote for the country's exit from the EU in June. According to the opinion polls 43% of the population insisted on the necessity of such a decision. After a slight growth the pair pound/dollar decreased to new minimums on Friday.

The Bank of Japan continues to deny its plan to lower the current exchange rate. The BOJ governor Kuroda said that they did not plan to soften the monetary policy to weaken the yen. According to Mr. Kiuchi from the Board of Directors: an intervention will be an option if the market becomes volatile. The pair dollar/yen strengthened.


Source link  
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...


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...

  


Share: