Fundamental Analysis – Page 6

Meanwhile, Traders Are Getting Angrier With Every Passing Day

May 5, 2016 Admin

Over the past few weeks, one recurring theme has been that experienced traders and analysts have simply given up trying to figure out the market, and no longer have an idea how to trade what for the past 7 years has been a centrally-planned policy vehicle. As a result they are getting exasperated, confused, desperate and simply angry. First it was Richard Breslow; then it was Albert Edwards who was clearly disgusted when he uttered the following appeal: I’m not really sure how much more of this I can take….

These Five Trends In China Will Change The Gold Market

April 27, 2016 Admin

Via HardAssetsAlliance.com, Apple spent about five years developing the iPhone, which has changed the smartphone market forever. Until the release, however, nobody could imagine what impact the iPhone would have on the market. And most consumers didn’t know about it at all. The same thing is happening with China and gold right now. The gold market will soon be very different than from what we see today – largely due to the current developments in China. China’s influence will impact not just gold investors but everyone who has a vested…

Key Events In The Coming Central Bank-Heavy Week

April 25, 2016 Admin

As DB previews, the April FOMC gathering headlines a crowded economic events calendar this week. The post-meeting statement, to be released Wednesday afternoon, should continue to strike a cautious tone. There will be no press conference and updated economic and financial forecasts will not be released. Few expect the FOMC to add the “balance of risks” sentence back into its communiqué at this point. Doing so would be quite bearish for risk assets as it would definitely open the door for a June rate hike. Over the past week, the…

EUR/USD Fundamental Analysis – 24th April 2016

April 24, 2016April 24, 2016 Admin

Fundamental Analysis tries to explain the movements of the market through economic events. Therefore, let us look at certain reasons that are significant for the EUR/USD pair. ECB keeps monetary policy intact; faces sharp criticism from Germany “We have a mandate to pursue price stability for the whole of the eurozone not only for Germany” – Mario Draghi, ECB President The European Central Bank held its interest rates at record lows and kept the size of its bond-purchasing programme unchanged, allowing some time for fresh stimulus measures announced last month to affect…

“A Scramble For Gold Has Begun”

April 23, 2016 Admin

Authored by James Rickards, originally posted at The Telegraph, For a century, elites have worked to eliminate monetary gold, both physically and ideologically. This began in 1914, with the UK’s entry into the First World War. The Bank of England wanted to suspend convertibility of bank notes into gold. Keynes counselled wisely that the bank should not do so. Gold was finite, but credit elastic. By staying on gold, the UK could maintain its credit, and finance the war effort. This transpired. The House of Morgan organised massive credits for…

Fundamental-Analysis: US remains on solid course, Fed on track for further rate hikes

April 10, 2016April 10, 2016 Admin

“So yes, there is accommodation in the monetary policy that we have. But we think the gradual path of rate increases will be appropriate” – Janet Yellen, Fed Chair Fed Chair Janet Yellen said that the US central bank did not make a mistake in hiking interest rates in December, a move that was followed by massive turbulence in financial markets and further weakening of the global economy. Yellen said that as the US economy remains on a solid ground with some signs of inflation. Moreover, seven years after the severe…

Fundamental Analysis: Canada’s trade deficit unexpectedly triples in February

April 7, 2016April 7, 2016 Admin

“This is pretty disappointing, and it’s a rude awakening for the Canadian economy” – Desjardins Group Canada’s trade deficit swelled in February more than expected amid the sharpest decline in exports in almost seven years. Canada’s trade deficit grew to $1.9 billion in February, more than triple the shortfall of $628 million the month before, Statistics Canada reported. Exports plunged 5.4%, the biggest month-on-month decrease since May 2009, on a combination of lower prices and a 2.2% decline in volumes. Imports also dropped 2.6%, due to lower prices as well as…

EUR/USD Weekly Fundamental Analysis – April 4- 8, 2016 -Forecast

April 3, 2016 Admin

The EUR/USD ended the week with a 2% gain at 1.1389 on better than expected data, but the climb in the euro is weighing heavily on exporters and the ECB plans. The US dollar fell most of the month on dovish FOMC outlooks. The euro zone economy continues to face significant headwinds from the influx of refugees, heightened security challenges amid terrorist attacks, uncertainty surrounding the outcome of the UK’s EU referendum, rising political polarization, and new bank regulations. However, after economic indicators showed signs of slowing growth dynamics in…

GBP/USD Weekly Fundamental Analysis – April 4- 8, 2016 -Forecast

April 2, 2016 Admin

The GBP/USD gained just 0.57% last week to trade at 1.4224 seeing an annual fall of 3.49% as Brexit continues to weigh on the currency. Although GDP beat forecasts recently manufacturing data was a bit weaker. The UK outlook is being dominated by the build up to the June 23rd referendum on whether the UK should leave the EU or Brexit for short. The more reliable phone-based opinion polls are showing a lead of close to 10% for the “stay” camp.However, that is down from over 20% at the end…

UK consumer confidence deteriorates amid threat of Brexit

March 31, 2016March 31, 2016 Admin

“Are we seeing Brexit jitters at work now? Whilst UK consumers remain resolutely upbeat about their personal financial situation, concerns about prospects for the general economic situation continue to dampen our mood” – GFK The UK consumer confidence declined to the lowest level in more than a year amid fears that Britain might vote to exit the European Union. GfK’s consumer-confidence index was at zero in March. A measure of expectations for the economic situation over the next 12 months was minus 12, remaining unchanged on the month and plummeting 18…