Fundamental Analysis – 26/11/2015

Good Morning,

EURUSD tumbled 57 points to reach 1.0617 as traders prepare for the US holiday and are counting down the days until the December ECB stimulus meeting. There are signs that the European Central Bank's quantitative easing is producing results but the bank needs to continue accommodative policies, ECB governing council member Patrick Honohan said on Wednesday. BoE Governor, Mark Carney, speak before the Treasury Select Committee where he was seen to state that the currently low level of inflation is related to the depressed oil prices we have seen this year. USDCHF is trading at 1.0222 while USDCAD is trading at 1.3296.

Gold inched up on Wednesday on geopolitical tensions after Turkey said it show down a Russian jet, while the retreat in USD eased pressure on commodities. Oil reversed gains to fall 70 cents to 43.48. GBPUSD eased 20 points to 1.5123 as USD surged. On the eve of Thanksgiving in the U.S. on Thursday and subsequent weekend, many market participants reduce their long positions on USD. EURCAD is trading at 1.4113 while EURGBP is trading at 0.7018.

The Japanese government on Wednesday maintained its assessment of the current state of the economy as recovering moderately, but noted that business investment and exports are under pressure. USDJPY dipped 20 points as the greenback weakened and JPY gained a bit of momentum on safe haven trades and comments from the BoJ minute’s release. AUDUSD gained 16 points while USD declined 22 points pushing the Aussie to 0.7254. NZD should weaken again on rate compression from both sides as the Fed hikes and RBNZ eases another 50bp. GBPCHF is trading at 1.5451 while EURCHF is trading at 1.0849.

Daily Performances (4.00 am. GMT); 

I hope you all have a nice day.

All the figures are as at the writing time.