News / Page 131

Technical Analysis – NZDJPY regains upside momentum but still below 50-day MA

Posted on February 3, 2016 at 2:49 pm GMT

NZDJPY has retraced about 60% of the December-January downleg from 82.85 to 73.63. The pair found resistance at the 61.8% Fibonacci retracement level at around 79.30 two days ago and is making another advance towards the level today. Near term indicators are bullish with RSI rising above 50 and the stochastics just above overbought level. The medium-term outlook remains bearish though as prices remain below the Ichimoku cloud and the moving averages. The 50-day moving average is the next resistance [..]

Kiwi rises to 3½-week high on strong employment and Wheeler comments

Posted on February 3, 2016 at 11:50 am GMT

The New Zealand dollar was one of the strongest performing currencies on Wednesday after employment grew more-than-expected and the RBNZ governor said monetary policy won’t focus on headline inflation. The kiwi jumped by 1% to a 3½-week high against the US dollar as traders pushed back their expectations of a rate cut in March. The Reserve Bank of New Zealand last cut its official cash rate in December by 25bps to 2.50% but kept them on hold at its January [..]

Asian Session – Yen firmer on equities slide; Kiwi gains on strong jobs data

Posted on February 3, 2016 at 9:03 am GMT

Risk sentiment dwindled on Wednesday as global equities continued with their descent and oil prices fell sharply for a second day. Tokyo stocks closed down by 3.2% following a near 2% drop on Wall Street on Tuesday. But Chinese shares cut earlier heavy losses to end the day just 0.4% lower after being boosted by better-than-expected services PMI for January. The US dollar drifted lower against the yen as risk aversion increased the yen’s attractiveness. The dollar hit a low [..]

Technical Analysis – Gold at 3-month highs but overbought

Posted on February 3, 2016 at 7:52 am GMT

Gold has marked a three-month high on Tuesday, peaking at 1130.93. Gold has successfully moved above the 100-day moving average and has had a daily close above the 50% Fibonacci for the past two days. This 50% Fibonacci level at 1118.80 is the retracement of the downleg from 1191.47 to 1046.29. (October 2015 to December 2016 decline). Prices are currently capped by the 200-day moving average which is providing resistance at 1128.45. The stochastic is in overbought territory which suggests [..]

European Session – Sterling buoyed by UK-EU proposal to prevent Brexit

Posted on February 2, 2016 at 3:13 pm GMT

The markets saw another rise in risk aversion today, helping the euro regain the $1.09 handle against the dollar. Data out of the Eurozone consisted of unemployment data which showed the jobless rate fell to a five-year low at 10.4% in December 2015, down from 10.5% in November 2015. Compared to a year ago, the rate was also down from the 11.4% rate in December 2014. While this is good news, the data may not be enough to sway the [..]

Technical Analysis – EURGBP looking less bullish on weakened upside bias

Posted on February 2, 2016 at 3:01 pm GMT

EURGBP bounced back today after finding support at 0.7540, just above the Kijun-sen line. RSI has ticked back upwards from around 50 after today’s gains, indicating a weak upside bias in the near term. However, the signal line in the MACD chart is sloping downwards, which could be a sign of a broader weakening of the current uptrend. The present rally that started in December 2015 has shifted the medium-term outlook for the pair to bullish as prices have surged [..]

Are financial markets the tail that wags the monetary policy dog?

Posted on February 2, 2016 at 1:05 pm GMT

Following the end of the first month of 2016, some conclusions can be drawn. It was a difficult month for financial markets and equities and commodities in particular. Concerns about the Chinese economy and a falling oil price was what pushed risk assets and commodities more broadly lower. On the side of the winners, gold and silver had a particularly good start to the year, as did government bonds in the US and Germany. What is also noteworthy however, is [..]

RBA keeps rates steady at 2% but cautious on growth outlook

Posted on February 2, 2016 at 11:10 am GMT

The Reserve Bank of Australia concluded its first monetary policy meeting of 2016 today and left its cash rate unchanged at 2.0%. The Bank last cut rates in May 2015 but has been largely neutral since August following the Australian dollar’s sharp decline over the period. The weaker aussie has been supporting the Australian economy to rebalance away from the country’s overreliance on mining exports. Record low interest rates have boosted domestic demand, which has helped sustain annual GDP growth [..]

Asian Session – Oil and dollar in retreat again; euro and pound firmer

Posted on February 2, 2016 at 8:27 am GMT

Asian equities were mixed on Tuesday as yesterday’s slump in oil prices weighed on risk sentiment. Shares in Tokyo ended the day lower as the effects of last Friday’s policy boost by the Bank of Japan wore off but China’s main indices closed over 2% higher, reversing Monday’s losses. The US dollar started the day flat after sliding yesterday on weak data. The ISM manufacturing survey showed activity contracting for a third straight month while personal consumption was unchanged in [..]

Technical Analysis – EURJPY rallies to 1-month high with resistance at 100dma

Posted on February 2, 2016 at 7:43 am GMT

EURJPY staged a strong rally in recent days to reach a one-month high of 132.29 on January 29. Prices have steadied after hitting that high and are being capped by the 100-day moving average which is now acting as a resistance level. The 61.8% Fibonacci retracement level of the rise from 126.08 to 141.04 (April to June rise) is also in this area acting as resistance. But if prices break the 61.8% Fibonacci, next resistance lies at the 200-day moving [..]

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