Fundamental analysis for March 30, 2016

30 March, 2016

Janet Yellen's speech was the key event yesterday. According to Yellen she is concerned about the low inflation figures. Meanwhile, the Fed has a number of tools for the economy stimulus, if needed, even if the rate returns back to zero. In addition, she noted that the world changes and risks lead to a slower pace of interest rate increase.

The dollar failed to grow against most of its rivals at the beginning of the new trading week. The US currency became a victim of the weak statistics from the US. The market response to the news was extremely intense in a low liquidity due to the ongoing Easter holiday. There was a mixed background concerning the single European currency. On the one hand, the "risk appetite" was preserved, which should put pressure on the euro as a funding currency. On the other hand, after Personal Consumption Expenditures publication the US dollar fell against its major competitors. The US published Consumer Confidence report for March at the level of 96.2 (the previous value was 92.2, the forecast was 93.9). By the end of the trades the pair euro/dollar showed a strong growth.

The growing oil price pushed the pound upwards. The pair pound/dollar increased by the end of the trades.

The yen finished the rally and weakened after the conflicting economic release from Japan. The interest in selling could be associated with the reports about the monetary stimulus measures discussion. The volume of consumer spending in Japan increased by 1.2% in February compared to the last year (it was the first time in six months), which was significantly better than the expected decline of 1.8%. The volume of retail sales grew by only 0.5% with the expected growth of 1.6%. The unemployment rate rose from 3.2% to 3.3%. The pair dollar/yen sharply fell.


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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...


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...

  


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