Fundamental analysis for May 12, 2016

12 May, 2016

Fundamental analysis for May 12, 2016

The major pairs corrected against the US dollar yesterday. The EU did not publish anything important and the market volatile was low. The British statistics was not able to impact the market through the main cross-pair euro/pound and all trades were calm and peaceful.

The lack of drivers calmed the UK market. Still the upcoming referendum may become one of the drives in the near future. According to Michael Sanders (the Bank of England Monetary Committee representative) if Britain votes for the exit from the EU, the Central Bank will be forced to raise the rates to 3.5% by the end of 2017. If the country leaves the EU union that might trigger the collapse of the pound and will increase the inflation.

On Wednesday, the dollar fell against the yen, as investors took profits. This was after the recent rally reaching the two-week highs and the Japanese statements about its readiness for an intervention. However, many investors expect that Japan will stay away from any action to weaken the yen before the G7 meeting.


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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...

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...

  


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