Fundamental Analysis – 27/11/2015

Good Morning,

EUR slipped towards seven month lows, bond yields fell and European shares rallied on Thursday on growing talk of aggressive stimulus from the European Central Bank next week. Market participants are betting that ECB will be more aggressive in cutting its Deposit Rate next week. EUR traders are anxiously awaiting the ECB meeting and the Fed rate decision due Dec 16. The benchmark DAX index at the Frankfurt Stock Exchange on Thursday rose by over 150 points and closed at 11.320,77 points. London's headline index, FTSE ended in positive territory with mining, airline, financial and retail stocks all notable among the top performers, as traders continue to assess the impact of Autumn Statement. Spain Gross Domestic Product (QoQ) meets forecasts (0.8%) in 3Q. USDCHF is trading at 1.0238 while USDCAD is trading at 1.3288.

Oil was quiet on Thursday, after showing strong volatility a day. U.S markets were closed for Thanksgiving and will shut early today. As expected, EURUSD was drifting in light trade on Thursday. Despite the shortened trading week, dealers and investors have had a plethora of U.S data to consider that could convince an undecided Fed member to shift allegiance. Canadian stocks are up a bit led by a rally in base metal stocks sparked by the big rebound in copper. EURCAD is trading at 1.4092 while EURGBP is trading at 0.7022.

AUD kicked off the day with the most notable move of this Thanksgiving holiday, with the currency seeing a bout of softness after Australian Capex widely missed expectations, seeing AUDNZD break below 1.1000. Australian business investment plunged by the most on record last quarter as firms slashed spending on plant and buildings, a surprisingly sharp blow to economic growth that sent the local dollar reeling. Most Asians shares rose in a calm trading amid the absence of important economic data from major economies, where markets were closed in the U.S. GBPCHF is trading at 1.5452 while EURCHF is trading at 1.0856.

Daily Performances (4.00 am. GMT); 

I hope you all have a nice day.

All the figures are as at the writing time.