News / Page 118

UK manufacturing rebounds in January; pound firms

Posted on March 9, 2016 at 12:28 pm GMT

UK industrial and manufacturing output rebounded in January following a slump towards the end of last year. Manufacturing output expanded for the first time in four months, jumping by a better-than-expected 0.7% month-on-month rate, against expectations of a 0.2% rate. Overall industrial production also posted positive growth after contracting by almost 2% in the prior two months combined. Total production output rose by 0.3% month-on-month in January, slightly below estimates of a 0.4% increase. On an annual basis, manufacturing output [..]

Asian Session – Drop in oil prices puts pressure on loonie ahead of BoC

Posted on March 9, 2016 at 8:54 am GMT

As there were no major releases or events during today’s Asian trading, currencies took their cue mainly from developments in other markets such as oil and stocks. The yen for example appeared to benefit from profit-taking in equities after Wall Street lost about 1% during Tuesday’s trading and Chinese and Japanese equities were also under some pressure today (also losing about 1%). Some concern about the Chinese economy lingered after the previous day’s dismal trade numbers out of the world’s second [..]

Technical Analysis – AUDUSD eases from 8-month highs; bias still bullish

Posted on March 9, 2016 at 8:23 am GMT

AUDUSD has retreated from an 8-month high of 0.7484 it set on March 7 but has held on to the 0.74 handle. Prices remain firmly above the 200-day moving average and the Ichimoku cloud but the tenkan-sen and kijun-sen lines are moving sideways, suggesting the bullish bias has lost some steam from the losses of the past two days. This is also evident from the RSI which has come down from overbought levels and is currently flat. But the MACD [..]

Commodity renaissance or a dead cat bounce?

Posted on March 8, 2016 at 3:45 pm GMT

A key theme in the markets lately has been the recovery of various commodity prices. Commodity prices have been falling more or less steadily since late April / early May of 2011. The Thomson Reuters CRB Commodity index for example has rallied 11% since its lows around the middle of February. The closely watched price of oil has put in a much more impressive recovery of almost 50% since it bottomed around $26 a barrel to rise above $38. Together [..]

European Session – Pound dips on Carney Brexit risks; Oil goes into reverse

Posted on March 8, 2016 at 3:40 pm GMT

The British pound came under focus in Tuesday’s European session as Mark Carney testified in parliament on the EU referendum, while the euro failed to react to Eurozone data. Commodities meanwhile sharply reversed earlier gains. Bank of England Governor Mark Carney was speaking before the Treasury Committee in parliament today as he was being quizzed by lawmakers about the benefits of EU membership. Carney voiced support for British PM David Cameron’s renegotiated deal saying it addresses the important issues identified [..]

Chinese exports shrink at fastest pace since 2009

Posted on March 8, 2016 at 12:54 pm GMT

Trade figures out of China today failed to quell fears that the slowdown in the world’s second largest economy could be getting deeper. Chinese exports to the rest of the world slumped by 25.4% year-on-year in February, far worse than estimates of a 12.5% drop. This was the fastest decline since 2009 at the height of the financial crisis. Imports also continued to shrink, declining by 13.8% year on-year against estimates of a 10% decrease. The trade balance halved from [..]

Asian Session – Aussie drops on commodity profit-taking while euro rises ahead of ECB

Posted on March 8, 2016 at 9:10 am GMT

Strong commodity prices were a key feature of trading during the previous session but market participants took this opportunity to book some profits in the Australian dollar. There was some volatile trading in the aussie, which made a 7-month high against the US dollar at 0.7483 during the US session. The aussie had been significantly helped by a big rally in iron ore and overall positive tone in commodities. Oil rose to its highest since early January as US crude [..]

Technical Analysis – EURJPY bounces off 3-year lows but bearish bias remains

Posted on March 8, 2016 at 9:05 am GMT

EURJPY has rebounded from the 3-year low of 122.06 it touched on March 1 but has found resistance just below the centreline of the Bollinger band. The March 4 high of 125.58 is the nearest resistance for the pair should it attempt to move higher. A climb into the upper half of the Bollinger Band would weaken the bearish bias and put prices within reach of the 50-day moving average. Looking at the momentum indicators, RSI failed to rise above [..]

European Session – Euro subdued ahead of ECB; aussie extends gains

Posted on March 7, 2016 at 3:40 pm GMT

Major currencies drifted sideways for much of Monday’s European session on what turned out to be a quiet trading day with little on the data front to excite markets. The US dollar was broadly stronger but the euro came under pressure at the start of the session as expectations of ECB easing on Thursday intensify. Better-than-expected German factory orders out earlier in the day failed to support the euro, which slipped from around 1.0990 dollars to around 1.0950 soon after [..]

Kuroda backtracks on more Bank of Japan easing for now

Posted on March 7, 2016 at 12:53 pm GMT

Bank of Japan Governor Haruhiko Kuroda signalled on Monday that the Bank is in no rush to cut rates further into negative territory. Kuroda said at a speech in Tokyo that the Bank of Japan will want to monitor the effects of negative interest rates which it introduced in January before cutting them further. The remarks point to a bit of a turnaround for Kuroda who had been indicating since the January decision that rates are likely to be reduced [..]

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