Fundamental analysis for April 14, 2016

14 April, 2016

Fundamental analysis for April 14, 2016

The dollar continued its attempts to recover. The latest Fed hawkish statements supported the dollar. In particular, Jeffrey Lacker (the Fed representative) said that the Fed is still planning four rates hike in 2016. The US currency got an additional support when the Fitch agency confirmed the US rating at AAA.

Retail Sales and the Producer Price index for March became the main events of Wednesday. The Retail Sales showed -0,3%m/m against the forecasted 0,1%m/m and previous data of -0,1% m/m. The Producer Price Index showed -0,1%m/m against the forecasted 0,2%m/m and previous data of -0,2%m/m.

The inflation data in Germany did not have any impact on the quotations. In March, the Consumer Price index remained at + 0.8% m/m and + 0.3% y/y. The growth of stock indices caused the euro sales. The pair euro/dollar decreased.

The UK inflation positive report for March supported the positive trend in the Bonds Market. The yields differential on government bonds (the United States and the United Kingdom) have been reducing for the last three trading days. This news increased the attractiveness of the British assets. However the trades on the pair pound/dollar closed with a decrease.

The 10-year government bonds yield differential (the US and Japanese) expanded which increased the attractiveness of the US assets providing support for the dollar in the pair USD/JPY. This pair showed a growth.


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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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