Fundamental Analysis – 28/10/2015

Good Morning,

Precious-Gold rose for the first time in five sessions on Tuesday as USD retreated after the release of weak U.S. A 2 day FOMC meeting has started, although a decision is not expected until Wednesday. British Petroleum (BP) said on Tuesday its third quarter earnings dropped on lower oil and gas prices, yet the profit exceeded analysts’ forecasts. The U.S. economy is arguably at an inflection point, with growth set to slow in the quarters ahead. USDCHF is trading at 0.9871 while GBPUSD is trading at 1.5301.

Chinese industrial profits for large firms slipped fractionally in the 12 months to September, declining 0.1% according to data released by the National Bureau of Statistics (NBS). China will maintain relatively high levels of economic growth in the next five years, said a vice governor of the central bank at a conference on Tuesday. The European session was marked by mild risk aversion flows with EUR doing an about face as it dove to 1.1029 from 1.1078 on the back of a decline in EURJPY which hit seven week lows. The AUDUSD dipped 14 points to trade at 0.7194 as traders prepare for the Federal Reserve decision. The Reserve Bank of New Zealand monetary policy announcement is on Thursday 29 October 2015. EURUSD is trading at 1.1038 while USDCAD is trading at 1.3263.

Most equities markets eased after the previous day's rally while USD slipped against its major peers as investors look ahead to key central bank meetings in the United States and Japan this week. Lending to the Euro-zone private sector slowed in September, according to a report by the European Central Bank, suggesting the bank's stimulus measures have yet to spark a significant turnaround in the region's economy. There are "no taboos" for the European Central Bank (ECB) when it comes to finding ways to push up the chronically low level of inflation in the EUR area, the ECB's chief economist Peter Praet told AFP in an interview. The UK economy grew by 0.5% between July and September, the Office for National Statistics (ONS) says, a slower pace than the previous quarter. United Kingdom Index of Services (3M/3M) below forecasts (1%) in August: Actual (0.9%). European Monetary Union M3 Money Supply (YoY) came in at 4.9% below forecasts (5%) in September. GBPCHF is trading at 1.5096 while EURCHF is trading at 1.0893.

Daily Performances (00.00 am. GMT);

I hope you all have a nice day.

All the figures are as at the writing time.