Fundamental analysis for April 21, 2016

21 April, 2016

Fundamental analysis for April 21, 2016

The dollar was under pressure after the weak US statistics publication. In March, Building Permits showed 1.086M vs. the forecast of 1.200M and the previous value 1.177M. Housing Starts index also disappointed the market, falling to 1.089M from 1.194M. The following data supported the US currency: Existing Home Sales showed 5.33M with the forecast of 5.30M.

This week macroeconomic statistics reduced the US and Germany government bonds yield differential, which played into the euro bulls’ hands. ZEW index for April reached the maximum level over the past three months amid decreasing fears about the reduction of Chinese GDP. By the end of the trades the pair EUR/USD decreased.

Claimant Count Change for March in the UK grew to 6,7K while the Unemployment Rate remained around 5.1% in February. Average Earnings excluding Bonus for February remained at 2.2%, Average Earnings including Bonus including bonuses fell to 1.8% from 2.1%. The number of unemployed increased by 21 000 people reaching 1.7M. Total wages and salaries in the private sector also slowed down to 1.9%, while the monthly rate fell by 0.9% (the lowest level since July 2014). The pair GBP/USD was trading in a flat.

On the one hand, the weak macroeconomic statistics from the US and the "bullish" sentiment in the commodity market played against the dollar. On the other hand, the "risk appetite" was preserved, that was a negative factor for the yen as a funding currency. The USD/JPY strengthened by the end of the trades.


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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...

Gold prices remained in a consolidation phase

Sellers led the spot to 1250 the other day but failed to break below the level. The price remained sandwiched between 1250 - 1255...


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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Brent found a solid support after two day decline

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