Fundamental analysis for May 10, 2016

10 May, 2016

Fundamental analysis for May 10, 2016

William Dudley’s speech (the head of the Federal Reserve Bank of New York) supported the dollar. According to William Dudley the regulator plans to hike the rate twice this year even though the number of new jobs created in the United States in April has been the lowest in the past seven months. The USA published minor economic data on Monday.

The main drivers for the dollar growth were: new rumors and expectations about the US interest rates increase in the summer, fears of the referendum results in Britain in June and cyclical factors. Meanwhile, the data published in the Eurozone on Monday, showed that the investors’ and analysts’ sentiment had been improved somewhat in May, but concerns about the global economic outlook continued to pressure the market. The Eurogroup decided to give Greece a new tranche in the next few weeks.

Strengthening of the dollar continued to pressure the pound.

According to Taro Aso (the Japanese Finance Minister) Tokyo is ready to intervene in the market if excessive dynamics of the yen will be able to influence the trade statistics and economic indicators. Earlier the yen generally strengthened after the Bank of Japan refrained from implementing fresh easing measures following the results of the April policy meeting, contrary to market expectations.


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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

The gold recovery stalled around 1235 dollars per ounce on Monday. Buyers did not find any reason to move the price further. The precious metal was slowly declining...

Brent found a solid support after two day decline

Oil prices slightly rose on Friday morning due to the dollar's retreatment. However, Brent further growth was limited on the news that Russian oil production for February did change comparing to January...

Gold prices slightly fell

Gold prices retreated from fresh highs and spent the day in a consolidation. Sellers drove the spot to 1250 where the precious metal stayed in a tight range during the European session...


Oil prices recovered back

Oil prices rebounded from the oversold zone in the Asian session. Sellers failed to regain 55.50 and gave the way to buyers. Buyers took a chance and had reversed all Friday' losses by the Monday's noon...

Gold reached three-month highs

Spot gold remained on strong bullish footing on Friday. After an Asian flat the price got an upward impetus in the European morning...

The euro is under pressure amid growing concerns

The single currency regained a minor portion of its losses in the Asian session on Wednesday. The pair was able to reach 1.0550. However, the selling pressure around the euro remained unchanged pushing the spot to fresh lows...

  


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