Fundamental analysis for May 19, 2016

19 May, 2016

The Fed minutes publication was the main event of Wednesday. Traders expected positive comments and hints regarding the possible rate hike. According to the minutes most of the fed members believe that the regulator can hike the rate in June if the economy state allows. After the minutes publications the dollar strengthened all over the market.

The Eurozone published the inflation report. The consumer price inflation in the Euro area remained unchanged at - 0.2%.

The pound was supported by the latest poll regarding the upcoming referendum. According to the poll: the number of British people who support staying in the EU are 8% more than those who want to leave. The UK published Unemployment Rate (remained at 5.1%), Average Earnings including Bonus (2.0% vs. expectations 1.7%) and Claimant Count Change (-2.4K vs. previous 14.7K).

The Yen was supported by the news that the Japanese economy is developing at the fastest pace in the first quarter. Still the Japanese currency lost its gains due to investors' expection that the government new measures will stimulate the economy growth.


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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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