Fundamental Analysis – 30/11/2015

Good Morning,

The greenback rose to multi month highs against GBP, after Bank of England Governor Mark Carney said in testimony to lawmakers earlier in the week that the U.K.’s low interest rate environment is likely to remain for some time. USDCHF is trading at 1.0303 while USDCAD is trading at 1.3366.

According to estimates of fundamental equilibrium exchange rates (FEER), USD is almost 10% overvalued and its rise over the past year will knock 0.5% off GDP growth annually for the next five years. EURUSD pair closed the week below the 1.0600 level, the lowest since March, ahead of crucial macroeconomic events that will take place this week, including an ECB economic policy meeting, and the US Nonfarm Payroll report. The past six weeks have been brutal for Gold, and this was really sparked by rate hike expectations out of the Federal Reserve, as the top in Gold meshes well with the bottom in the USD. The Federal Reserve appears hell bent on raising interest rates for the first time in a decade and only a lousy U.S. jobs report could put a freeze on its plans. EURCAD is trading at 1.4154 while EURGBP is trading at 0.7042.

Reserve Bank of Australia (RBA) governor, Glenn Stevens, has seemingly denounced a cut to the official cash rate tomorrow. EURJPY is heavily bearish and the growing expectations around the ECB further monetary easing will continue to depress prices. China shares see biggest weekly drop in more than 3 months. The International Monetary Fund's (IMF) Executive Board meets on Monday to discuss a staff proposal to include CNY in an exclusive group of currencies that make up the basket of the IMF's Special Drawing Rights (SDR). GBPCHF is trading at 1.5480 while EURCHF is trading at 1.0906.

Daily Performances (4.00 am. GMT); 

I hope you all have a nice day.

All the figures are as at the writing time.