News / Page 148

European Session – Dollar weakness across the board, euro rises above 1.09 to new monthly high

Posted on December 9, 2015 at 3:19 pm GMT

US dollar weakness across the board was the main theme of the currency markets on Wednesday. Weakness in the greenback helped the euro rise to a new monthly high of 1.0989. The single currency has pushed above the key 1.09 level for the first time this week as it has taken on a role of a funding currency. Weaker global equities were also modestly supportive of the euro. In terms of data out of the Eurozone today, Germany reported a [..]

Chinese yuan weakest since 2011 as economy remains sluggish

Posted on December 9, 2015 at 1:01 pm GMT

Recent data out of China has done little to reassure investors that growth in the economy is picking up. The manufacturing sector, which has been the hardest hit on waning overseas demand, has yet to show solid signs of a turnaround despite some evidence of output bottoming out. The Caixin manufacturing PMI – a key indicator for factory output – has been improving for the past three months, though it remains in negative territory. But the official manufacturing PMI worsened [..]

Asian Session – Dollar extends losses on risk-off; Euro climbs above 1.09 dollars

Posted on December 9, 2015 at 8:25 am GMT

The US dollar extended Tuesday’s losses into today’s Asian session as traders turned increasingly risk averse. The risk-off mood is helping currencies such as the euro and the yen make gains against the greenback even as the Fed prepares to raise US interest rates next week. The euro was around 0.2% firmer against the dollar at 1.0919 in late Asian session, having opened at 1.0891 dollars. The greenback briefly attempted to reclaim the 123 level against the yen in early [..]

Technical Analysis – GBPUSD in downward channel, testing key 1.50 support

Posted on December 9, 2015 at 7:50 am GMT

GBPUSD has been in a downward trend since the June 2015 peak of 1.5929 to the December low of 1.4893. Prices have fallen within a downward channel in the past six-months. The technical indicators are giving bearish signals. The tenkan-sen and kijun-sen lines are negatively aligned and the RSI is in bearish territory below 50. The 200-day moving average and the daily Ichimoku cloud are barriers to the upside. Immediate resistance is at 1.5100. Prices are now testing a key [..]

European Session – Oil drops sub-$37, dragging loonie to fresh 11-year lows

Posted on December 8, 2015 at 3:38 pm GMT

Risk aversion dominated the currency markets on Tuesday, buoying the yen and the euro. Meanwhile, commodity prices were in focus as crude oil fell to levels last seen in early 2009. As a result, oil-tied currencies remained under pressure, such as the Canadian dollar and the Norwegian crown. A broadly stronger greenback did not help these currencies. Oil fell to $36.63, the earliest since February 2009. The dollar rose to a fresh eleven-year high against the loonie, hitting 1.3621. Canada [..]

What’s next for euro / dollar after the ECB let down euro bears?

Posted on December 8, 2015 at 2:17 pm GMT

Following the dramatic move in foreign exchange markets the previous Thursday, when the euro surged on the back of a smaller-than-expected boost to ECB stimulus, it is worth asking what’s next for euro / dollar. Of course the short-term pain felt by euro bears was intense, but there could be some interesting medium-term implications outside the short-term pain. First of all, although euro bears were dealt a serious blow last Thursday, they are apparently slowly coming out again. Euro / [..]

Japan not in recession after GDP is revised up

Posted on December 8, 2015 at 1:14 pm GMT

Japan’s economy posted positive growth in the third quarter of the year according to the second estimates of GDP growth, cancelling the negative reading of the preliminary estimate. The revised figure means that not only Japan avoided entering technical recession in the third quarter, having contracted by 0.1% q/q in the second quarter, but the upward revision was much stronger than expected. GDP expanded by 0.3% quarter-on-quarter and by 1.0% at an annualized rate, beating estimates of 0.1% (annualised) and [..]

Asian Session – Oil prices stabilize but still bearish; Yen firmer after Japan GDP revised higher

Posted on December 8, 2015 at 8:08 am GMT

Crude oil prices were slightly firmer on Tuesday after slumping to fresh near 7-year lows yesterday. US crude oil futures were up at $37.70 after hitting a low of $37.50 on Monday. The outlook for oil prices has become increasingly bearish after OPEC failed to agree on a production ceiling at a meeting last week. However, higher imports from China have helped prices stabilize on Tuesday. Data out today showed China imported more commodities in November from a month earlier. [..]

Technical Analysis – EURJPY rally capped by Ichimoku cloud

Posted on December 8, 2015 at 7:37 am GMT

EURJPY has found resistance at the bottom of the daily Ichimoku cloud. Last week’s big surge from 130.00 to 135.00 has retraced slightly but found support at 133.55, which is the 50% Fibonacci retracement level of the rise from 126.08 to 141.04 (April to June rise). Due to the falling and thickening Ichimoku cloud and the market being below the 200-day moving average, further upside momentum looks weak. The RSI has also turned back down before reaching overbought levels. Downside [..]

European Session – Canadian dollar pressured to new 11-year low as oil prices drop

Posted on December 7, 2015 at 3:23 pm GMT

The worst performers on Monday were the Canadian dollar and crude oil, while the US dollar strengthened across the board after Friday’s solid jobs report. The nonfarm payrolls data bolstered investor confidence in the US economy and raised expectations for a rate hike at the Fed policy meeting next week. Policy divergence still remains between the Fed and the ECB even though the latter disappointed markets last week and was not as aggressive in delivering stimulus measures. As a result, [..]

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