Fundamental Analysis – 07/12/2015

Dec 07


  • BY:
  • December, 07th, 2015 1:01 +00:00

Good Morning,

Japan's ruling party is considering giving small and midsize businesses a 50% tax break for three years on purchases of production equipment, hoping to stimulate capital investment. The price action suggests the market continues to buy Aussie pullbacks. USDJPY stayed in tight range last week and outlook is unchanged. USDCHF is trading at 0.9975 while USDCAD is trading at 1.3374.

The French elections are the first electoral test since last month's Paris attacks, in which 130 people were killed. The shocking decision made by the ECB last Thursday has not only disappointed investors, but also generate another bout of uncertainty. Looking ahead the rise in CHF is not a surprise given the ECB move but it adds some intrigue. No change is expected in policy at the SNB's policy meeting following last week's ECB meeting. EURCAD is trading at 1.4546 while EURGBP is trading at 0.7198.

EURUSD pair recovered in one day almost all what it lost in the previous four weeks, following, and maintained its bullish tone this Friday, despite the release of US positive employment data for November. The data, from US Bureau of Labor Statistics, showed the jobless rate held at its seven and a half year low of 5%. The November non-farm payroll figure of 211.000 means the first mandate from the Fed is averaging 213.000 per month over the past six months and 220.000 over the past 12 months. Fed may need to consider lowering inflation target, stopping low rate guidance. While lower prices eat into the revenues of the oil cartel's members, cheap crude may result in lower production from non OPEC nations helping countries like Saudi Arabia preserve their market share. United States Labor Force Participation Rate climbed from previous 62.4% to 62.5% in November. USDCAD stayed in familiar range last week and outlook is unchanged. GBPCHF is trading at 1.5063 while EURCHF is trading at 1.0846.

Daily Performances (4.00 am. GMT);

Currencies / Indices / Commodities Performance
USDCAD 0.11%
GBPUSD 0.03%
EURGBP 0.20%
Athex Composite Share Pr -          1.59%
OMX Copenhagen Index -          0.14%
FTSE 100 Index -          0.59%
CAC 40 Index -          0.33%
BIST 100 Index -          1.57%
DAX Index -          0.34%
IBEX 35 Index -          0.14%
Euro Stoxx 50 Pr -          0.38%

I hope you all have a nice day.

All the figures are as at the writing time.