Fundamental analysis for March 08, 2016

8 March, 2016

Fundamental analysis for March 08, 2016

Market attention last week was directed to the long-awaited report on the US labor market, that had shown a positive increase. However despite such a strong result, the dollar weakened against the European currencies, showing a short-term positive reaction. This was because the market paid considerable attention to hourly earnings index which were very disappointing. After January growth of 0.5% the indicator went to the negative territory, reaching -0.2% vs. expected + 0.2%. In spite of the still favorable labor market conditions, the inflation at the consumer level can not let the Federal Reserve tighten the monetary policy in the foreseeable future.

In economic news, Germany published factory orders (-0,1% against the forecasted -0,3%) and Eurozone revealed Sentix investor confidence (5,5 against the forecasted 8,0). The ECB meeting is the key event of this week. We expect the ECB to expand its stimulus to support the economy of the region. By the end of the trades the pair EUR/USD strengthened.

Despite the "black gold" growth the British currency growth slowed down anyway. The slow down may be a signal for investors to begin taking profit on long positions. The pair GBP/USD showed a strong growth by the end of the trades on Monday.

The pair USD/JPY continues the trades in a flat.


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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...

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...

  


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