News / Page 150

Yellen gives clearest indication to date that rate hike maybe near

Posted on December 3, 2015 at 11:10 am GMT

The Chair of the Federal Reserve, Janet Yellen yesterday gave the clearest indication yet that a rise in US dollar interest rates is near. Yellen said she was “looking forward” to the first rate hike, as it would signal that the US economic recovery was strong enough to be able to withstand non-zero interest rates. Delaying the first rate rise further could have negative implications, according to Yellen. The Fed Chair therefore tried to give a positive interpretation of the [..]

Technical Analysis – Oil at $40 a barrel level looks bearish and set to challenge 6 ½ year low

Posted on December 3, 2015 at 9:21 am GMT

The price of US oil blend hit a fresh 3-month low the previous day as it briefly dipped below $40 a barrel. It has since recovered above 40, but the outlook remains bearish. Oil is looking to take out the 37.75 low it made in late August, which would mark oil’s lowest point since February 2009 (when stock markets around the world also made a low in the wake of the global financial crisis). The indicators are all pointing to [..]

Asian Session – Dollar strong after Yellen comments as euro awaits Draghi

Posted on December 3, 2015 at 9:01 am GMT

The US dollar was strong following hawkish comments by Fed Chair Janet Yellen that she was actually “looking forward” to a rate hike that would signal that the US economy is on the path of monetary policy normalization. Yellen tried to stress the positive side of a possible rate hike, which showed that she was probably prepping the market for such a decision when the Fed next meets on December 15/16. She also warned that delaying a rate hike could [..]

European Session – US dollar rallies after solid ADP jobs data, euro weighed by Eurozone inflation data

Posted on December 2, 2015 at 3:31 pm GMT

Eurozone inflation data today will likely add more fuel for the ECB to step up stimulus at Thursday’s policy meeting. The year-on-year flash headline inflation number was unchanged at 0.1% which was below forecasts. The market had anticipated a 0.2% increase. The core inflation rate slowed to 0.9% from 1.1%. This is not good news for the ECB since fighting low inflation is proving to be one of its greatest challenges and could likely be a reason for it to [..]

Technical Analysis – AUDUSD struggles to hold above 0.73 on weakened bullish bias

Posted on December 2, 2015 at 2:22 pm GMT

AUDUSD reversed earlier positive intra-day momentum on Wednesday, coming close to dropping below 0.73, having climbed above the level on yesterday’s 1.3% gain. RSI and the stochastics are still positive in the daily charts therefore further gains are possible in the near term. In the medium-term picture, prices would need to break above the October 12 high of 0.7381 if the pair is to sustain its current uptrend, which is being supported by higher lows since September. It is too [..]

Mining exports boost Australian GDP in Q3; aussie extends gains

Posted on December 2, 2015 at 11:07 am GMT

The Australian economy bounced back in the third quarter of the year as mining output jumped by 5.2% after declining in the previous quarter. GDP expanded by a stronger-than-expected 0.9% q/q in the July-September period, above estimates of 0.8%. In the second quarter, the economy had stagnated to just 0.2% q/q as the slowdown in China had hurt exports. Compared to the same time last year, GDP was up 2.5% during the quarter. The jump in exports contributed the most [..]

Asian Session – Aussie and Kiwi make gains but loonie hurt by weak GDP

Posted on December 2, 2015 at 8:15 am GMT

The US dollar rebounded on Wednesday to climb back towards Monday’s 8½-month highs after taking a pause yesterday from its recent gains. Weaker-than-expected ISM manufacturing data on Tuesday also weighed on the greenback. Speaking yesterday in Michigan, Chicago Fed President Charles Evans reiterated the need for a gradual path of US interest rate increases adding that “it could well be appropriate for the funds rate to still be under 1% at the end of 2016”. The greenback moved higher against [..]

Technical Analysis – USDJPY consolidates around 123.00, bullish bias remains

Posted on December 2, 2015 at 7:44 am GMT

USDJPY has a neutral bias in the near-term, trading in a range between 122.21 and 123.74. After a rise from 118.05 to 123.74 (October to November), the pair has been consolidating just above the 23.6% Fibonacci retracement level of this rise, at 122.40. This is an important support level. The medium-term bias remains bullish after the rally from 118.05, as long as the market remains above the 200-day moving average and above the Ichimoku cloud. Tenkan-sen and kijun-sen are positively [..]

European Session – Dollar slips on weak US ISM manufacturing PMI, euro up on Eurozone PMI

Posted on December 1, 2015 at 3:46 pm GMT

The US dollar is trading softer today due to profit taking ahead of key risk events coming up later in the week. These include the ECB meeting, nonfarm payrolls and a testimony by fed Chair Janet Yellen. Also weak US ISM November manufacturing data dragged the dollar lower. In today’s European session the single currency rose to a high of 1.0636, moving off yesterday’s seven-month low of 1.0557. Eurozone‐wide final manufacturing PMI data were unchanged from the preliminary 52.8 and [..]

Explaining the “policy divergence” driving the euro / dollar lower

Posted on December 1, 2015 at 3:13 pm GMT

Currency traders have been using the justification of “policy divergence” in recent months in order to drive the euro lower – particularly against the US dollar. In the broadest of terms it means that the US monetary authority, the Federal Reserve is intent on tightening policy while the respective Eurozone authority, the European Central Bank, is loosening policy. Specifically, while the ECB is going to expand its QE program and cut its deposit rate deeper into negative territory, the Fed [..]

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.

News

XM Live Chat