News / Page 149

Oil hits fresh 3-month low following OPEC meeting

Posted on December 7, 2015 at 2:58 pm GMT

The oil price was under intense pressure during Monday’s trading, as the market digested OPEC’s decision to more or less keep pumping at will. The oil price was trading well below the $40 level, which it also violated the previous week (this refers to the US WTI benchmark). The fact that there was no OPEC ceiling to adhere to drove prices even lower than the news that the ‘old’ 30 million barrels a day ceiling had been raised to 31.5 [..]

Asian Session – Absence of macro events leads to sideways action following eventful week

Posted on December 7, 2015 at 8:12 am GMT

Foreign exchange markets were trying to regain their sense of balance at the start of trading this week, following the very important events of the previous Thursday and Friday. The US dollar was still trading off Thursday’s lows versus the euro, after the announcement of the November employment report on Friday seemed to seal the deal on a rate hike at the Fed’s next meeting. The euro was buying 1.0864 dollars, off the high of 1.0981 struck in the wake [..]

Technical Analysis – EURGBP bearish below cloud and moving average

Posted on December 7, 2015 at 7:51 am GMT

EURGBP was not able to sustain Thursday’s big rally that took the pair to 0.7250. There was a daily close below the 200-day moving average on Friday and on Monday the opening was below it at 0.7192. A resumption of the downtrend from 0.7492 is looking possible since the market is below the Ichimoku cloud and below the 200-day moving average. Momentum has lost strength as the RSI is pointing back down. Also, prices moved back below the 50% Fibonacci [..]

European Session – Nonfarm payrolls reinforce Fed rate hike outlook, oiI plunges on OPEC announcement

Posted on December 4, 2015 at 4:00 pm GMT

The US nonfarm payrolls report was the main focus of the markets today after the dust settled from yesterday’s big moves driven by the ECB. The euro settled down after its biggest surge in six years versus the dollar following Thursday’s ECB disappointment. The central bank was not as aggressive as markets had expected and so the scale of the market’s reaction was quite big, with the euro rallying the most since 2009 to reach a high of 1.0980. Today [..]

Another strong US NFP report clears path for Fed rate hike

Posted on December 4, 2015 at 3:34 pm GMT

Nonfarm payrolls in the United States had another strong showing in November, rising by 211k and beating estimates of 200k. In further support of today’s solid rise, last month’s robust increase was revised up from 271k to 298k. The strong readings clear the way for the Federal Reserve to proceed with its first rate rise since June 2006. The unemployment rate remained unchanged at 5% in November, while the labor force participation rate improved slightly to 62.5% from 62.4% in [..]

Week Ahead – Bank of England and RBNZ meet; Japan GDP could get revised to positive growth

Posted on December 4, 2015 at 12:54 pm GMT

Central Bank meetings will continue into next week with the Bank of England and the Reserve Bank of New Zealand holding their respective policy meetings. Also to watch out next week are the Chinese trade data and Japanese GDP revision, which could show Japan avoided technical recession in the third quarter. German industrial production data will start the week on Monday. Industrial production is expected to rebound in October, and is forecast to rise by 0.7% m/m after shrinking by [..]

Miscommunication costs euro bears dear this week

Posted on December 4, 2015 at 11:36 am GMT

The stimulus measures announced by ECB President Mario Draghi, together with the reduction in the deposit rate to -0.30%, left markets underwhelmed on Thursday. This caused a huge rally in the euro – the biggest such daily move in 6 years. What were the reasons for the market’s big surprise though? Although it is hard to speculate on exactly why this happened, it appears that a combination of miscommunication, false perceptions and some infighting within the ECB Governing Council could [..]

Asian Session – Euro holds on to gains after ECB disappointment; dollar attempts recovery

Posted on December 4, 2015 at 8:20 am GMT

Global equities followed Europe’s lead to post sharp losses after the European Central Bank left markets disappointed with the set of measures announced yesterday at its policy meeting. The ECB cut its deposit rate by 0.1% to -0.3% as expected but many analysts were hoping for a bigger cut. The bond buying program was extended by 6 months to the end of March 2017 but the size of the monthly purchases was left unchanged, leaving traders unimpressed. The euro saw [..]

Technical Analysis – NZDUSD corrects recent downtrend, bullish above cloud

Posted on December 4, 2015 at 7:31 am GMT

NZDUSD rebounded from the Nov 18 low of 0.6427 after testing the bottom of the Ichimoku cloud. Prices moved back inside the cloud to repeatedly test its top around 0.6680. There was a daily close above the cloud after the pair hit a high of 0.6704 on Thursday. Prices opened above the cloud on Friday. With prices above the cloud and the RSI is above 50 in bullish territory, and the tenkan-sen rising, there is scope for further upside towards [..]

European session – ECB lets down traders expecting more stimulus; euro rallies

Posted on December 3, 2015 at 3:18 pm GMT

The euro rallied in later European trading today as the ECB failed to live up to the expectations that had built up before today’s meeting. In the event, the ECB did cut its deposit rate deeper into negative territory by 10 basis points to -0.30%, extended its QE program to March of 2017 and broadened the scope of the program to include local government and municipal bonds. Crucially though, the bank failed to enlarge the size of its monthly purchase [..]

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