News / Page 115

Technical Analysis – AUDUSD bullish above 0.7500

Posted on March 21, 2016 at 7:39 am GMT

AUDUSD retains its bullish outlook especially after the 50-day moving average crossed above the 200-day moving average last week, which is a bullish signal. As long as the market remains above 0.7500, there is scope for prices to extend higher towards 0.7700. MACD is above zero and rising, supporting a bullish bias. In the near term, the market is likely to consolidate after the recent rally stopped at 0.7679 on Friday. RSI reached overbought levels, which indicates a pullback was [..]

Week Ahead – Eurozone PMI and UK, Japan inflation to dominate in quiet week

Posted on March 18, 2016 at 3:56 pm GMT

After an intense two weeks of central bank activity, it will be a relatively quieter week ahead of the Western Easter break. Along with Eurozone flash PMI, inflation data for the UK and Japan will be the main data to watch over the coming seven days. Starting the week will be housing data for the United States. Existing home sales are due on Monday and are forecast to show a 2.9% decline over the month in February. New home sales [..]

Divergence? No, major central banks singing the same dovish tune

Posted on March 18, 2016 at 3:40 pm GMT

During the past 10 days or so, there was the rare opportunity to hear the decisions of some of the world’s most important central banks within days of each other. The European Central Bank, the Bank of Japan, the Federal Reserve, the Swiss National Bank and the Bank of England all met and discussed policy within the same 8-day period. This was perhaps a lot of information to digest all at once, but some key conclusions have emerged behind the [..]

European Session – Euro comes under pressure, loses $1.13 handle after ECB’s Praet comments

Posted on March 18, 2016 at 3:34 pm GMT

The euro came under pressure today to trim post-FOMC gains made against the dollar that took the single currency to a one-month high above $1.13 yesterday. Meanwhile, weaker-than-expected producer price index data (PPI) from Germany and dovish comments from ECB Governing Council member Peter Praet also weighed on the single currency. German PPI decreased 3.0% year-over-year in February, which was more than the 2.6% drop economists expected. In January prices fell 2.4%. PPI also fell on a month-on-month basis, by [..]

Asian Session – Equities and commodities extend gains on dollar weakness

Posted on March 18, 2016 at 9:09 am GMT

Asian equity markets opened broadly higher on Friday following a strong performance on Wall Street on Thursday. The Dow Jones and S&P500 both closed at the highest since December 31st, wiping out all of the yearly losses to date. In China, the Shanghai Composite index closed up 1.7%, boosted by a strong rise in new home prices in February, particularly in large cities. Stocks in Tokyo lost out though due to the strong yen which is seen as negative on Japanese corporate [..]

Technical Analysis – USDCHF downside risk below 200-dma

Posted on March 18, 2016 at 8:08 am GMT

USDCHF broke below the 200-day moving average on Thursday, which was acting as support. This break has weakened the underlying bullish market structure. The pair had a daily close below the key 0.9700, which is also a 50% Fibonacci level of the upleg from 0.9077 to 1.0326 (May to November 2015 rise). This is a critical level and now acts as a resistance level for upside moves. RSI is negative in bearish territory below 50, which highlights the downside bias. [..]

European Session – Dollar limits losses after US jobless claims data; sterling hits 1-month high of $1.45

Posted on March 17, 2016 at 3:32 pm GMT

The US dollar was broadly weaker during today’s European session, extending losses from the Asian session following a big tumble in reaction to a dovish and unexpectedly cautious Fed on Wednesday. Markets reacted negatively as the Fed announced that it scaled back its rate hike forecasts. This led to a dollar sell-off and by today’s European session, the US currency fell to a 16-month low below the key 111 yen level. It touched 110.65 yen, the lowest since October 2014. [..]

SNB keeps policy unchanged but repeats franc intervention threat

Posted on March 17, 2016 at 3:13 pm GMT

The Swiss National Bank held interest rates unchanged on Thursday at its latest policy meeting. It kept its 3-month LIBOR target rate at between -1.25% and -0.25% and the interest on sight deposits with the central bank at -0.75%. The decision was unanimously expected by all economists in both Reuters and Bloomberg surveys, but there was some speculation that the SNB would respond with a counter measure to the ECB’s aggressive easing last week. The strong value of the Swiss [..]

Asian Session – Dollar slips to 1-month lows after FOMC; aussie and kiwi up on strong data

Posted on March 17, 2016 at 9:00 am GMT

The US dollar extended its losses into Thursday to slip to one-month lows against a basket of currencies. The Federal Reserve yesterday lowered its projections on US GDP growth and its dot plot guidance on expected interest rate rises. The FOMC’s outlook is now in line with market expectations of just two rate increases this year. Analysts had been expecting the Fed to lower its projections but were surprised at the apparent lack of concern for the latest spike in [..]

Technical Analysis – USDJPY neutral bias with downside risk

Posted on March 17, 2016 at 8:05 am GMT

USDJPY maintains its neutral bias, trading in a broad range between 112.00 and 114.50 since mid-February. Only a break above 115.96 (January 20 low) would shift the near-term bias to a more bullish one. Downside risk exists as indicated by the falling RSI. The indicator is also below 50 in bearish territory. Meanwhile, the negatively aligned moving averages also highlight a bearish outlook. There is scope for prices to target the key 111.00 level, which is an important support level. [..]

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.

How can we help?

Live Chat Terms

How to Access

Telegram Chat Terms

News