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the oil prices rebounding pushed the investors to reload risky assets

Discussion in 'Current Market Sentiments' started by fx-recommends, Jan 15, 2016.

  1. fx-recommends

    fx-recommends Content Contributor

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    XAUUSD Daily 15-01-2016 07-00-46 ص.jpg
    Shanghai composite returned today to the red territory trading below 3000, after rebounding of the risk appetite by the end of yesterday session could be extended into the US session with oil benchmarks ability to rise from their new 12 years low levels below $30 which have been recorded this week.

    US Import Price Index of December has fallen by 6.5% y/y, after 6.3% decreasing in November and also US Export Price Index came down by 8.2%, after declining by 9.3% in November because of the greenback appreciation amid oil prices weakness and also retreating of commodities prices showing low pressure on the Fed to raise rates for containing the inflation.

    From the other side of the Atlantic, BOE expected yesterday inflation rising by a gradual pace, after unusual large drags from energy and food prices, while the core inflation pressure remains relatively subdued.

    The cable kept trading around 1.4400, after MPC had voted 8:1 for keeping the interest rate unchanged at 0.5%, as it has been since Feb 2009, because Ian Mc Cafferty is still considering hiking the interest rate by 0.25% to 0.75%, before watching inflation building pressure by the wages rising, British pound depreciation and domestic costs, as long as there is conviction among the members that the pace of tightening will be gradually.

    MPC voted unanimously to hold BOE’s APF at Stg375b, as it has been since July 2012 re-investing the £8.4 billion of cash flows associated with the redemption of the January 2016 gilt held in the Asset Purchase Facility.


    The risk-on sentiment could come back to the markets putting pressure on the gold to retreat yesterday to $1071.22 level, before residing for trading now near $1080 per ounce just above its daily SMA50.

    The demand for safe haven could drive the gold up reach by the end of last week $1112.75 which has been its highest reached level since last Nov. 4 but it retreated again failing to maintain a place above its daily SMA100.

    Despite yesterday retreating to $1071.22, XAUUSD daily Parabolic SAR (step 0.02, maximum 0.2) is still below its trading rate for the tenth consecutive day reading now $1071.22 too. The gold could rise for trading above this indicator, after having a higher bottom at $1057.98 following maintaining existence above $1046.08 by rising from $1047.46 on last Dec. 17.


    Important levels: Daily SMA50 @ $1079.17, Daily SMA100 @ $1107.69 and Daily SMA200 @ $1136.08

    S&R:

    S1: $1071.22
    S2: $1057.98
    S3: $1046.08
    R1: $1112.95
    R2: $1123
    R3: $1138.05


    Have a good day

    Walid Salah El din
    Senior Market Analyst
    Skype : chief.economist.walid

    walid.s@trade-24.com
    Tel: UK. +44 1138590277
    Mob: EGY. +20 1224659143
    Archive:
    http://www.trade-24.com/daily-analysis

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