Fundamental analysis for May 04, 2016

4 May, 2016

The USA published some minor reports: ISM New York and IBD/TIPP Economic Optimism indices (48,7 against the forecasted 46,6). We single out only one news that might be interesting: Dennis Lockhart’s speech (the Fed representative). According to Lockhart the price strengthening can be seen right now, but it is too early to decide whether this is sufficient to hike the rate. The decision regarding the rate hike will be taken at the next meeting in June.

Producer Price Index in Eurozone for March showed -4.2% (the forecast was -4.3%, the previous value was -4.2%). The index rose for the first time this the year. That is a signal that the inflation is unlikely to fall in the coming months.

On Tuesday, the pound decreased from its four months high when the UK manufacturing activity fell in April for the first time over the past three years (49.2 from 51.0 in March, vs the forecasted 51.2). The published index increased concerns about the prospects for growth in the second quarter.

Bank of Japan did not work on Tuesday amid the celebration of the Constitution Day.


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Gold reversed some losses

The softer tone in the US Dollar allowed gold prices to reverse some losses. Buyers broke the upper limit of the selling channel and almost...

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....

  


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