Fundamental Analysis – 04/12/2015

Good Morning,

United States ISM Non-Manufacturing PMI below forecasts (58) in November: Actual (55.9). United States Initial Jobless Claims came in at 269K, above expectations (268K) in November 27. Gold managed to bounce on Thursday after two daily losses and a fresh multi year low, amid broad USD weakness. Federal Reserve Chair Janet Yellen told Congress Thursday that economic conditions appear to be improving enough for policymakers to raise interest rates when they meet in two weeks as long as there are no major shocks that undermine confidence. Investors awaited Friday's US nonfarm payrolls report and weighed disappointment over the level of euro zone stimulus after the European Central Bank's decision. Oil prices gained Thursday on a weaker USD and speculation that the Organization of the Petroleum Exporting Countries might decide at its Friday meeting to curb production. United States Factory Orders (MoM) came in at 1.5%, above expectations (1.4%) in October. US ADP non-farm employment measure rose to 217k, a five month high. USDCHF is trading at 0.9921 while USDCAD is trading at 1.3340.

U.S. stocks dropped more than 1% late Thursday afternoon as the European Central Bank's announcements failed to impress investors, while Janet Yellen's comments suggested the Federal Reserve was on track to raise rates this month. The European Central Bank has cut the deposit rate to a record low of -0.3% and vowed to print money for as long as it takes to defeat deflation, pushing its radical stimulus measures to extremes never seen before in any major region in modern history. Investors flocked out of Eurozone government bonds Thursday and the selloff rippled into the U.S. government debt market as fresh stimulus from the European Central Bank underwhelmed investors’ expectations. European markets finished sharply lower today with shares in Germany leading the region. The Markit/CIPS UK Construction Purchasing Manager’s Index for November have been released and reveal that house-building grew at its slowest rate for over two years. Euro area PMI services was revised down in November 54.2. EURCAD is trading at 1.4596 while EURGBP is trading at 0.7221.

New Zealand ANZ Commodity Price declined to -5.6% in November from previous 6.9%. GBPCHF is trading at 1.5026 while EURCHF is trading at 1.0856.

Daily Performances (4.00 am. GMT); 

I hope you all have a nice day.

All the figures are as at the writing time.