Fundamental analysis for March 22, 2016

22 March, 2016

Fundamental analysis for March 22, 2016

The dollar tried to recover after aggressive sales, still its upward potential was limited, and the US currency was in its third week of decline against the euro. The stock markets sentiment supported the dollar. The main drivers for the risky assets strengthening were: oil growth and Praet's comments (ECB representative) regarding possible further monetary policy.

The EUR/USD showed a mixed background. On the one hand, the growth of "risk appetite" was a negative factor for the euro as a funding currency. On the other hand, moderately negative macroeconomic data from the United States did not allow the dollar to strengthen. Weak Retail Sales for January and February did not allow us to rely on an increase in sales in the secondary market. In fact the data came in at the level of 5,08M against the forecasted 5,34M. However, the pair euro/dollar decreased.

The UK government bonds yield decreased in relation to their counterparts (USA and Germany) which reduced the attractiveness of investments in British assets, and thereby put pressure on the pound. On the other hand, the oil market showed a technical correction as well. Then the oil price showed a growth. The pair pound/dollar closed the trades with a decrease.

Japan celebrated a public holiday, its banks did not work. The market showed low liquidity. The pair dollar/yen slightly increased.


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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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