Fundamental analysis for March 31, 2016
31 March, 2016
The dollar suffered significant losses. The US currency fell victim to the extremely soft Fed rhetoric. The regulator emphasized the risks: external and internal, and also mentioned the possibility of policy easing if necessary. The regulator’s comments suggest a significant weakening of the dollar, especially in light of the mentioned possible return to the economy stimulation. The ADP for March was published on Wednesday (the previous value was 214K; the forecast was 194K). The data came in at the level of 200K.
It is impossible to ignore the growing "appetite for risk": the new postions on carry trade cuased pressure on the euro as a funding currency. However the pair euro/dollar strengthened by the end of the trades.
The debt market dynamics pointed to the British currency correction. The 10 years UK government bonds yields reduced in relation to their counterparts (the United States and Germany) which reduced the attractiveness of the British assets. The Bank of England performance will be the focus of our attention on Thursday. By the end of the trades the pair pound/dollar decreased.
The yields differential on government bonds of the United States and Japan decreased from November to February inclusively. Retail Sales turnover decreased by 5.4% in Japan. Despite the Japanese and the US retail sales differential indicators at 0% at the end of January, this figure reached the level of 2.2% in favor of the latter in February. The pair dollar/yen closed the trades with a slight growth.
Source link
Related materials
The buying interest persists in the market. All technical indicators are positive supporting buy orders. The resistance lies at 1.3300, the support comes...
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...
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...
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...
The prices have reached their important target of 1260 and this was only a bounce and a correction of the downtrend...
Today is last day of the month and FED's members speeches are to be announced therefore the market volatility growth is expected...
The resistance holds at 1280, support comes in at 1245.9. Major resistance is highlighted at 1295.4. Next target is set at 1350...
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....
The bullish trend remained intact on Tuesday. The price bounced from the upper limit...
Top Brokers offering Forex Market Analysis
Forex Currencies Forecasts
| # | Broker | Review | |
|---|---|---|---|
| 1 |  | easyMarkets | 88% |
| 2 |  | FXTM | 85% |
| 3 |  | FxPro | 82% |
| 4 |  | FIBO Group | 77% |
| 5 |  | Fort Financial Services | 74% |
| 6 |  | HYCM | 72% |
| 7 |  | FXCM | 70% |
| 8 |  | XM | 68% |
| 9 |  | HotForex | 67% |
| 10 |  | 24option | 66% |
