Fundamental Analysis – 25/11/2015

Good Morning,

Monetary Policy Committee testimony showed quite clearly that the Bank of England is not unconditionally committed to maintaining loose monetary policy. Germany IFO - Expectations above forecasts (103.5) in November: Actual (104.7). EUR briefly dipped below 1.0600 for new seven month lows, but there was no follow through selling. GBPUSD dipped 15 points. EURGBP added 24 points as EUR gained on better than expected German Ifo data while meeting its GDP target. USDCHF is trading at 1.0181 while EURUSD is trading at 1.0630.

The Fed has all but guaranteed a December rate hike, which will be the first in almost a decade, but bond market futures suggest rates will only rise an additional 50 basis points in 2016. Fed Chair Janet Yellen reaffirmed the case for keeping interest rates near zero percent and raising rates slowly in the future. Oil concluded last week with an improved sentiment from investors following a sharp drop of US oil rigs at the end of the trading week. Gold settled at its lowest level since February 2010 amid a broad commodity rout as USD strengthened. USDCAD gained another 5 points to trade at 1.3336 as the Loonie got no support from a slight climb in oil and gold prices. EURCAD is trading at 1.4175 while EURGBP is trading at 0.7058.

Asia Pacific share market finished up in subdued trade due to cementing likelihood for a December rate hike by the Federal Reserve. AUDUSD matched declines in the USD with the Aussie gaining 8 points to trade at 0.7226 remaining off its lows from last week even against the strong USD. NZD was little changed. EURJPY declined 14 points as EUR continued to weaken. USDJPY kept pace with the declines in the greenback. GBPCHF is trading at 1.5326 while EURCHF is trading at 1.0822.

Daily Performances (04.00 am. GMT); 

I hope you all have a nice day.

All the figures are as at the writing time.