Fundamental analysis for April 18, 2016

18 April, 2016

Fundamental analysis for April 18, 2016

The market volatility decreased before the summit in Doha, its results may impact the risk assets. In addition, the US currency got under pressure after the Fed comments and the weak inflation data from the US. According to D. Lockhart (Chief Executive Officer of the Fed of Atlanta) he would not vote for a rate hike in April, supporting a cautious approach to the monetary policy tightening due to low consumer spending. By the end of the trades the market volatility increased.

The United States published Industrial Production volume for March. The index came in at the level of -0,6% m/m (the previous value was -0.60% m/m, the forecast was -0.10% m/m) and the Consumer Sentiment index (from the University of Michigan) for April. The index showed 89.7 (the previous value was 91.0, the forecast was 92.0).

The Euro area inflation data had no significant effect on the EUR/USD (the index reached the zero value after falling by 0.1% y/y). The Euro zone published Trade Balance for February. The index showed 19.0 billion euro, the previous value was 20.0 billions. The pair euro/dollar showed a growth.

Bank of England did not bring any surprises, leaving the rate unchanged at the level of 0,5%. The Bank pointed to the risks related to the Brexit. The pound remained calm to the regulator’s statements. By the end of the trades the pair pound/dollar sharply increased.

The weak US retail sales, PPI and CPI reports disappointed investors. The US and Japanese government bond yields decreased which reduced the attractiveness of the US assets. The pair dollar/yen decreased by the end of the trades.


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: