Fundamental Analysis – 18/11/2015

Good Morning,

US total CPI increased 0.2% in October while core CPI, which excludes food and energy, also increased 0.2%. EURUSD remained apathetic after the release of US CPI, leaving the pair navigating around the 1.0656 area. Gold; traders are selling in anticipation of a Fed rate hike in December. On Tuesday, oil prices gave up earlier gains. USDCHF is trading at 1.0151 while GBPUSD is trading at 1.5211.

London global shares gained convincingly on Tuesday, clawing back all the ground lost on the previous day. Germany ZEW Survey - Current Situation registered at 54.4, below expectations (55) in November. European Monetary Union ZEW Survey - Economic Sentiment below expectations (35.2) in November: Actual (28.3). EURGBP dipped 15 points as GBP held steady after inflation data met expectations while EUR continues to decline on economic worries over the closing of borders. Consumer price inflation in the U.K. remained in negative territory for the second straight month in October, underlining concerns over deflationary pressures and reinforcing views that interest rates will remain pegged at record lows in the near future, official data showed on Tuesday. BOE Governor Mark Carney has highlighted core inflation as an important measure for policy makers as they weigh when to begin interest rate increases after keeping them at a record low for more than six years. Both the European Central Bank and the International Monetary Fund visited Cyprus to identify opportunities to stimulate growth in the once depressed economy. EURUSD is trading at 1.0649 while EURGBP is trading at 0.7000.

A sharp drop in dairy prices will weigh on NZD. AUDUSD dipped another 13 points to trade at 0.7126 as USD continued to rally as a safe haven although markets remain a calmer than expected.  USDJPY continued to trade within its daily range, unable to pick up pace either side of the board regardless of the latest series of data which showed US consumer prices grew in line with expectations in October. EURJPY dipped 5 points to 131.44 as EUR and JPY traded on a weak note. Tokyo stocks rose on expectations of further stimulus measures by Japan's central bank. GBPCHF is trading at 1.5436 while EURCHF is trading at 1.0810.

Daily Performances (05.00 am. GMT); 

I hope you all have a nice day.

All the figures are as at the writing time.