News / Page 147

Technical Analysis – USDJPY bearish bias below 200-day moving average, 120 in focus

Posted on December 14, 2015 at 7:40 am GMT

USDJPY has traded below the 200-day moving average since breaking below it on December 9. The pair is testing the 50% Fibonacci retracement level at 120.89 of the rise from 118.05 to 123.74 (October to November rise). Next support is the 61.8% Fibonacci found near 120.22. Early on Monday prices pierced into the daily Ichimoku cloud before bouncing back to rest on the top of the cloud. Downside bias though is being highlighted by negatively aligned tenkan-sen and kijun-sen lines [..]

European Session – Oil at lowest since 2008, loonie tumbles

Posted on December 11, 2015 at 3:51 pm GMT

Weak commodity prices continued to be the main theme in the markets today as well as a weakening yuan. Oil declined to the lowest level since 2008 to reach $36.05 a barrel on oversupply concerns as oil production continues to increase. The Canadian dollar which is linked to oil prices, weakened further today to reach a fresh eleven-year low against the greenback. USDCAD rose steadily throughout the day to a high of 1.3713. The South African rand plummeted to a [..]

Yuan’s 4-year low versus dollar could mark path of further depreciation

Posted on December 11, 2015 at 2:54 pm GMT

The yuan’s midpoint versus the US dollar was set at a fresh 4-year low today by the People’s Bank of China. The PBOC set the midpoint at 6.4358 and the currency traded as low as 6.4550. The Chinese economy has slowed down in recent years; from growth rates that exceeded 10% in the aftermath of the 2008-2009 financial crisis down to 7% and below more recently. China is also trying to shift its economy away from manufacturing and towards services [..]

Week Ahead – Fed lift-off could finally arrive; China, Japan and UK also in focus

Posted on December 11, 2015 at 12:44 pm GMT

The US Federal Reserve is expected to take centre stage next week as it meets for its December FOMC meeting and is likely to announce its first rate hike since 2006. However, China, Japan and the UK should not go unnoticed as key economic indicators are released for the respective countries. China will release its latest industrial production and retail sales data on Saturday even before the week has started. Industrial production is forecast to stay unchanged at 5.6% y/y [..]

Asian Session – Dollar and euro steady but oil glut pushes loonie to new 11-year low

Posted on December 11, 2015 at 8:42 am GMT

The US dollar was flat on Friday following yesterday’s partial rebound from recent lows. The greenback briefly topped 122 yen before slipping down to 121.91 yen in late Asian session. Risk aversion has helped the Japanese currency make gains against the dollar and is set to end the week 1% higher. Meanwhile, the euro was steady against the dollar and the pound at 1.0945 and 0.7228 respectively. The single currency’s recent bullishness lost some steam on Thursday after ECB Governing [..]

Technical Analysis – EURGBP neutral between two Fibo levels

Posted on December 11, 2015 at 7:54 am GMT

EURGBP looks poised to fall following rejection from the daily Ichimoku cloud top this week. The 38.2% Fibonacci retracement at 0.7279 of the 0.6935 to 0.7492 rise is acting as resistance. Immediate support is at the 50% Fibonacci at 0.7213 and then the 61.8% at 0.7147. The near-term trend is neutral between the 50% 38.2% Fibo levels but a daily close today below the cloud would increase selling pressure. [..]

European Session – Pound falls on dovish BoE, Rand hits fresh record low

Posted on December 10, 2015 at 2:59 pm GMT

Two major central bank meetings were in focus in today’s European session. The Bank of England met and published the minutes of its policy meeting immediately. As expected, the key interest rate was left at 0.5% and asset purchases at GBP375bln. MPC members voted 8-1 to keep rates on hold, as has been the case in the last four decisions. The pound dropped from around 1.5180 to 1.5110 versus the dollar on the BoE policy announcement, mainly sinking in response [..]

Swiss National Bank refrains from pushing rates to deeper negative territory

Posted on December 10, 2015 at 11:04 am GMT

At the most recent monetary policy assessment, the Swiss National Bank decided against pushing interest rates even deeper into negative territory. After a policy meeting in Bern on Thursday, the central bank left the interest rate negative at -0.75% on banks’ sight deposits. This was in line with market expectations. The SNB also decided to leave the target range for the three-month Libor unchanged between −1.25% and –0.25%. On 18 December 2014, the SNB decided to impose an interest rate [..]

Asian Session – Aussie and kiwi soar on rate expectations; euro at 1-month high

Posted on December 10, 2015 at 8:27 am GMT

The Australian dollar rose sharply, hitting a high of 0.7334 against the US dollar after a strong jump in employment in November. Employment increased by 71.4k against expectations of a fall of 10k, pushing the unemployment rate down to 5.8% – the lowest since May 2014. This is the second month in-a-row of strong jobs growth and reduces the likelihood of further cuts in interest rates by the Reserve Bank of Australia. The aussie was slightly down from its peak [..]

Technical Analysis – USDZAR rises to record high

Posted on December 10, 2015 at 7:35 am GMT

USDZAR surged to a record high on Wednesday December 9, hitting 15.25. Looking at the weekly chart, prices have been steadily moving higher in a rising channel since the 2011 low of 6.53. It has been a solid uptrend, with the market being above the Ichimoku cloud and above the 200-week moving average. The tenkan-sen and kijun-sen lines are positively aligned and this also a bullish signal. Prices are now testing the upper channel line. RSI is in bullish territory [..]

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