Fundamental analysis for April 01, 2016

1 April, 2016

Fundamental analysis for April 01, 2016

The dollar continued to lose ground, being under heavy pressure after the recent extremely soft Janet Yellen's comments. The dollar was so shocked by the regulator's rhetoric that was not able to show a positive reaction even after a positive labor market report.

According to the ADP, the level of employment increased by 200 000 compared to the forecasted 194 000. If not the recent Yellen's comments the market could see a decent dollar growth in response to the positive ADP release, which attracted considerable attention in anticipation of the NFP. The USA published Initial Jobless Claims for March at the level of 276K (the previous value was 265K; the forecast was 269K).

After a positive German’s CPI release we expect the Euro area inflation data better than a consensus forecast. The ECB soft monetary policy and the oil price growth pressured the inflation in Europe. The preliminary CPI for March came in at -0.1% m/m, in line with the forecast. The pair EUR/USD strengthened.

The United Kingdom published the final GDP for Q4. The report showed 2.1% vs. the forecast of 1.9%. According to Carney, the Bank of England governor, the low growth and low interest rates create problems for banks and corporations. The instrument pound/dollar is consolidating.

The published Japanese macroeconomic statistics continued to disappoint the market. The main factors that pressured the yen were: weak employment and retail sales report and the negative industrial production. The industrial production has been decreasing the last three months. The pair dollar/yen is consolidating.


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Pound tested 1.3200 and stopped

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Brent failed to approach 49.50

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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

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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

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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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