Fundamental Analysis – 20/01/2016 (2)

Good Afternoon,

GBPUSD saw no benefit out of the better than expected jobs data after Mark Carney of the Bank of England spooked GBP traders. European Central Bank is heading into the first economic policy meeting of this 2016, and market participants agree that no new measures will be announced this Thursday. European stocks dropped on Wednesday as a relentless slide in oil prices hit world markets. UK wage growth came in at 2%, unemployment rate stood at 5.1%. USDCHF is trading at 1.0014 while USDCAD is trading at 1.4631.

AUDUSD is down 35 points to 0.6851 after Westpac consumer sentiment dropped and global stress continued to grow. Global stocks are hitting two-and-a-half year lows, with Japan entering a bear market. New Zealand is on the brink of deflation after prices fell more than economists forecast in the fourth quarter. EURCAD is trading at 1.5962 while EURGBP is trading at 0.7697.

EURUSD was flat today bouncing a few points in either direction to trade at 1.0909. Gold gained steadily today to trade at 1099.84. USDJPY fell 48 points to trade at 116.74. World stocks sank to their lowest levels since 2013 on Wednesday, hit by another tumble in oil to 13-year lows that kept equity markets on track for one of their worst monthly performances ever. Global growth could be derailed over the next two years if key transitions in the world economy are not successfully navigated, the International Monetary Fund has warned. Oil continued to fall giving up 83 points to trade at 29.06. GBPCHF is trading at 1.4189 while EURCHF is trading at 1.0926.

Daily Performances (8.00 pm. GMT); 

I hope you all have a nice day.

All the figures are as at the writing time.