Fundamental Analysis – 20/10/2015

Good Morning, 

The ECB official announced that additional measures including structural reforms are required to stimulate inflation growth in the Eurozone. GBP has been under pressure while markets out price a rate hike from the BoE. EUR retreated to a 10-day low against USD on Monday, as investors focused on a European Central Bank meeting later in the week that could pave the way for further stimulus to boost inflation in the euro zone. Iceland is unlikely to accept the latest offer from bank creditor groups trying to withdraw their claims from the island without incurring an exit tax. USDCHF is trading at 0.9555 while GBPUSD is trading at 1.5473.

The National Bank of Canada (NBC) are predicting the Canadian dollar to trade softer over coming weeks. “There are still huge uncertainties with regards to the impacts of the oil shock not only in the present but also on the future outlook, e.g. via the observed collapse of investment spending,” say Stefane Marion at NBC. We believe that EURUSD could head higher before we see push-back from the ECB. EURUSD is trading at 1.1335 while USDJPY is trading at 119.48.

Energy companies in the U.S. tumbled Monday on concerns about Iran boosting oil production and refreshed worries about Chinese economic growth. Growth in China's gross domestic product has decelerated for four straight years and will likely keep slowing through 2017, according to the International Monetary Fund. EURAUD is trading at 1.5611 while EURJPY is trading at 135.43.

Daily Performances (00.00 am. GMT);

I hope you all have a nice day.

All the figures are as at the writing time.