Fundamental analysis for April 07, 2016

7 April, 2016

Fundamental analysis for April 07, 2016

There was a pessimistic statement by Lagarde (the head of IMF) regarding the growing risks for the global economy. The Federal Reserve latest comments talked about low expectations regarding the interest rate. Finally the oil price decreased. All of these factors together were the main drivers for the risk escape, and against this background the dollar tried to recover. The Fed minutes publication became the main event of Wednesday. Some traders are afraid that the rate hike in April will show undue urgency. Also there were different opinions about the possibility of interest rates hike in April.

The market reaction to the positive USA reports was weak. We noticed the growing optimism in the bonds market. German 10-year government bonds yield kept growing, which made European assets more attractive for investments. Germany revealed Industrial Production for February. The index came in at -0.5% versus the previous data of 2.3% and the forecast of -1.8%. The pair euro/dollar showed a growth.

Service PMI grew both in the USA and the UK. Both indexes grew in comparison to February still the USA PMI growth rate was higher. The pair pond/dollar increased.

The USD/JPY completely ignored the positive macroeconomic statistics from the US and negative reports from Japan. The pair kept on following the dynamics of the stock markets, especially the Japanese one. The pair decreased.


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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

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Golld turned around and reversed

The bullish trend remained intact on Tuesday. The price bounced from the upper limit...


Gold prices remained in a consolidation phase

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DAX grew amid a fresh buying interest

European stocks opened in green when markets recovered from Trump’s failure in Congress. Investors focused on Brexit...

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

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