Fundamental Analysis – 18/02/2016

Good Morning,

U.S. stocks closed more than 1.5 percent higher Wednesday for their largest three-day gain since late August, helped by some recovery in oil prices and encouraging economic data. Decline in oil prices will have a lasting impact on fiscal and economic indicators. US industrial production jumps 0.9% in January, beating expectations. United States Producer Price Index ex Food & Energy (MoM) came in at 0.4%, above forecasts (0.1%) in January. Dozens of members of Congress plan to ask the Obama administration to review the planned acquisition of the Chicago Stock Exchange by a Chinese firm, to assess whether it poses a national security risk or a risk to the companies traded on the exchange. Gold ended a three-day drop to hold near $1,200 an ounce as Federal Reserve minutes showed U.S. policy makers saw risks to the economic outlook have worsened. USDCHF is trading at 0.9924 while USDCAD is trading at 1.3680.

We still expect the BoJ to fight deflation risks with aggressive monetary easing and we now expect the BoJ to cut interest by 20bp in March as a response to a weaker growth outlook and the risk of low wage growth. NZ data - ANZ Job Advertisements for January: -3.2% m/m (prior +1.1%). EURCAD is trading at 1.5214 while EURGBP is trading at 0.7781.

United Kingdom Average Earnings including Bonus (3Mo/Yr) meets forecasts (1.9%) in December. GBPCHF is trading at 1.4177 while EURCHF is trading at 1.1037.

Daily Performances (4.00 am. GMT);

I hope you all have a nice day.

All the figures are as at the writing time.