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.


Source link  
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...

  


Share: