Fundamental Analysis – 08/12/2015

Dec 08

FUNDAMENTAL ANALYSIS BY NSFX 08.12.2015

  • BY:
  • December, 08th, 2015 1:30 +00:00

Good Morning,

Gold trades at a spot price of 1071.17 per ounce. Markets are firm on expectation that Fed will hike interest rate finally later in the month. U.S. Treasury prices rose on Monday, pushing yields lower, as investors sold assets perceived as risky following a sharp drop in oil prices that helped fuel a decline in stocks. S&P 500 traded down 15 points, or 0.70%, to 2.077, with energy leading seven sectors lower and telecommunications leading advancers. Brent and U.S. crude settled at or near February 2009 lows in belated reaction to the Organization of the Petroleum Exporting Countries' (OPEC) policy meeting on Friday which ended without an agreement to lower production. Released on Friday, the US non-farm payrolls greatly surprised to the upside. FOMC is widely expected to raise the funds rate target range to 25 to 50 basis points next Wednesday. USDCHF is trading at 0.9975 while USDCAD is trading at 1.3374.

EURUSD has lost ground on Monday, as the pair trades above the 1.0800 line. BoE Governor Mark Carney recently asserted that UK interest rates should remain low for some time. Germany Industrial Production s.a. (MoM) registered at 0.2%, below expectations (0.7%) in October. EURCAD is trading at 1.4546 while EURGBP is trading at 0.7198.

Short NZDUSD can be considered before RBNZ meeting on 9 December 2015. NZD fell as a decline in oil prices weighed on commodity linked currencies and as traders increased their bets for a Reserve Bank interest rate cut this week. Bank of Japan (BoJ) Governor Haruhiko Kuroda said on Monday he saw no need to implement negative deposit rates in Japan as borrowing costs were already very low due to the central bank's aggressive asset purchases. China's foreign exchange reserves fell to their lowest level in nearly three years in November, official data showed Monday. GBPCHF is trading at 1.5063 while EURCHF is trading at 1.0846.

Daily Performances (4.00 am. GMT); 

Currencies / Indices / Commodities

Performance

USDCAD

1.09%

GBPUSD

-          0.36%

EURGBP

0.12%

Athex Composite Share Pr

0.21%

OMX Copenhagen Index

0.91%

FTSE 100 Index

-          0.24%

CAC 40 Index

0.88%

BIST 100 Index

-          0.48%

DAX Index

1.25%

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.