Fundamental analysis for May 23, 2016

23 May, 2016

The dollar is trading at seven-week highs against other majors. The expectations regarding the possible interest rate hike in the US significantly supported the US currency. Positive economic statistics from the US could lead to the monetary policy tightening in the upcoming months.

The ECB representatives made several important statements in the last weeks about the Central Bank policy in the upcoming months. According to Vitor Constancio (Vice-President of ECB) the Bank continues to stimulate the economy in spite of the growth of the inflation in the euro area. The Bank expects the inflation to reach the level of 2% in 2016.

The pound became optimistic when the last polls showed that the majority of people would vote to remain in the EU. The referendum is scheduled for June 23.

The dollar reached a three-week peak in the pair USD/JPY. The weakness of the US Bonds market supported the Japanese currency as the safe asset.


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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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