Fundamental Analysis – 22/01/2016

Jan 22


  • BY:
  • January, 22nd, 2016 1:08 +00:00

Good Morning,

The bounce of USDCAD could extend above 1.4500 if Fed decides to be a bit less hawkish. Oil prices and global equity markets rebounded, following a turbulent few days that wiped trillions of USD off asset values, though it was unclear whether the vigorous selling action had come to an end. The economists see a hard landing for China's economy contributing to global deflation. Gold retreated from a 1 - ½ week high hit, amid weak physical demand from large buyers in Asia and as USD soared. The EIA report released on Thursday showed that U.S. crude inventories rose more than forecast the previous week. FED clearly wants markets to think that the U.S. economy is good through its strong USD policy. USDCHF is trading at 1.0071 while USDCAD is trading at 1.4280.

GBPUSD is trading to new session highs and in the process has moved above the 1.4227 level, the low from 2010. EUR slipped against USD after dovish remarks from ECB President Mario Draghi during the press conference on Thursday. After Wednesday's wild ride and sizable stock market reversal that limited losses, Wall Street attempted rebounded Thursday with the Dow rising triple digits after oil jumped 5% and European stocks rallied on ECB stimulus talk. EURCAD is trading at 1.5528 while EURGBP is trading at 0.7644.

A snapshot of the percentage changes of the major currency pairs shows that the NZD rose against all the major pairs. GBPCHF is trading at 1.4320 while EURCHF is trading at 1.0952.

Daily Performances (4.00 am. GMT);

Currencies / Indices / Commodities Performance
NZDUSD 1.84%
GBPJPY 1.00%
USDJPY 0.73%
AUDUSD 1.51%
EURUSD -          0.05%
USDCAD -          1.57%
EURGBP -          0.36%
CAC 40 Index 1.97%
IBEX 35 Index 1.97%
Euro Stoxx 50 Pr 2.13%
FTSE 100 Index 1.77%
Swiss Market Index 0.86%

I hope you all have a nice day.

All the figures are as at the writing time.