Fundamental Analysis – 24/02/2016

Feb 24


  • BY:
  • February, 24th, 2016 1:11 +00:00

Good Morning,

The U.S. central bank should “absolutely” consider raising interest rates at its policy meeting in the middle of March, said Kansas City Fed President Esther George on Tuesday. Traders see about a 48% chance the Fed will act this year, down from 93% on January.U.S. stocks declined from six-week highs, paced by banks as the recent rally’s strongest performers lost momentum while investors assessed global growth prospects amid renewed concern that China will remain a drag. Oil has been rallying this morning amid rumors of another US - Russia deal for a truce in Syria. U.S. stocks closed lower Tuesday, as hopes of an oil production cut were dashed and after a miss in the consumer confidence index. USDCHF is trading at 0.9917 while USDCAD is trading at 1.3778.

The recent devaluation of the USD was despite the latest news from Bank of Japan to slash its deposit rates to -0.1%, which should have brought down JPY. With Australia’s Wage Price Index anticipated to show sticky household earnings in the fourth-quarter of 2015, a positive development may boost the appeal of the higher-yielding currency as it encourages the Reserve Bank of Australia (RBA) to retain its current policy in 2016. USDSGD lost close to 100 points on Tuesday, as the pair trades at 1.4059.  EURCAD is trading at 1.5173 while EURGBP is trading at 0.7860.

UK Prime Minister David Cameron has announced a referendum on whether Britain should remain in the European Union to be held on Thursday 23 June. GBPCHF is trading at 1.3887 while EURCHF is trading at 1.0921.

Daily Performances (4.00 am. GMT);

Currencies / Indices / Commodities Performance
USDCHF - 0.77%
NZDUSD - 0.69%
GBPJPY - 1.63%
AUDUSD - 0.29%
USDCAD 0.53%
CAC 40 Index - 1.40%
IBEX 35 Index - 1.42%
Euro Stoxx 50 Pr - 1.59%
FTSE 100 Index - 1.25%
Swiss Market Index - 1.94%

I hope you all have a nice day.

All the figures are as at the writing time.