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 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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