News / Page 151

Weaker UK manufacturing PMI pulls pound back below 1.51 dollars

Posted on December 1, 2015 at 3:06 pm GMT

Manufacturing activity in the United Kingdom fell more than expected in November, reversing some of October’s sharp gains. The Markit/CIPS manufacturing PMI declined to 52.7 in November from October’s 16-month high of 55.2. The figure took markets by surprise as analysts were expecting a milder drop to 53.6. Sterling, which had been advancing against the dollar prior to the data, fell to 1.5078 dollars immediately after the release. It extended its losses to 1.5059 dollars in late European trading, pulling [..]

China manufacturing output still sluggish but growth in rest of economy gathers pace

Posted on December 1, 2015 at 11:05 am GMT

The latest official PMI data from China highlighted the growing divergence between manufacturing and non-manufacturing output as the economy struggles to regain momentum. Manufacturing PMI declined further into negative territory to 49.6 in November from 49.8 the prior month. Consensus estimates were for the reading to stay unchanged at 49.8. Non-manufacturing output rose however, climbing to 53.6 from October’s 53.1. A reading above 50 indicates expansion. The improving picture in the rest of the economy could be a sign that [..]

Asian Session – China PMI disappoints; Aussie up as RBA holds rates

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

Chinese PMI data out today showed that manufacturing output remains subdued in the world’s second largest economy. The official manufacturing PMI fell slightly to 49.6 in November, falling short of expectations that it would stay unchanged at 49.8. However, the private survey from Caixin pointed to a small rebound with the index rising slightly to 48.6. The Chinese yuan was steady in today’s Asian trading following yesterday’s decision by the IMF to include the currency in its Special Drawing Rights [..]

Technical Analysis – EURCHF back to neutral but potential for gains above Ichimoku cloud

Posted on December 1, 2015 at 7:40 am GMT

EURCHF failed to close above the daily Ichimoku cloud on Monday, after a strong rally on Friday took it to 1.0925, which is just shy of the 61.8% Fibonacci level at 1.0928 of the fall from September’s 1.1048 peak to the November low of 1.0733. The bias is neutral now as prices linger in the cloud. A close above the cloud would bring a bullish bias for an opportunity to target Friday’s high of 1.0925 and a break there would [..]

European Session – Euro declines to new seven-month low ahead of ECB

Posted on November 30, 2015 at 3:37 pm GMT

The euro remained under pressure as the main focus for the market is the ECB meeting on Thursday that is expected to unveil fresh monetary easing measures. The single currency is headed for its biggest monthly decline since March against the dollar and reached a new low since April today at 1.0562. Data out from Europe showed German retail sales numbers were weaker-than-expected, falling 0.4% m/m in October while German flash CPI data were in line with expectations of a [..]

Technical Analysis – USDCHF rises to 5-year high; bias is bullish

Posted on November 30, 2015 at 2:05 pm GMT

USDCHF climbed to a fresh 5-year high on Friday, passing the 1.03 handle for the first time since August 2010. The pair has spent much of the year attempting to recover from the January tumble when the Swiss National Bank removed the franc’s cap against the euro. The post October FOMC rally has taken prices sharply above the Ichimoku cloud and the 200-day moving average, shifting the medium-term outlook to a decisively bullish one. The near term bias also remains [..]

Swedish GDP expands at twice the expected rate in Q3; krona jumps

Posted on November 30, 2015 at 11:24 am GMT

Sweden’s economy expanded by twice the rate expected by economists as it grew by 0.8% q/q in the third quarter of the year. Estimates were for the economy to expand by 0.4% q/q. The year-on-year rate accelerated to 3.9% following three successive quarters of growth around 1%. The better-than-expected figures make it more difficult for the Riksbank, Sweden’s central bank, to justify looser monetary policy. Like the Eurozone, Sweden has problems of deflation of its own where prices have been [..]

Asian Session – Data points to signs of recovery in Japan; dollar near 8-month highs

Posted on November 30, 2015 at 8:47 am GMT

Industrial production data out in Japan showed output expanding for a second month in-a-row in October, raising expectations that the economy will bounce back in the final quarter of the year. Industrial output was up 1.4% m/m in the preliminary estimate for October. Although the figure was below forecasts of 1.9%, the increase was encouraging and there were further signs of a rebound from retail sales figures. Retail sales rose by 1.8% y/y in October, sharply above estimates of 0.8%. [..]

Technical Analysis – EURUSD strong bearish bias, negative momentum

Posted on November 30, 2015 at 7:39 am GMT

EURUSD maintains a bearish bias, trading below the key 1.06 level. Momentum is quite negative as the daily RSI is below 50 and has been there since mid-October. Furthermore, the tenkan-sen and kijun-sen lines are negatively aligned while prices are below the daily Ichimoku cloud and below the 200-day moving average. All these highlight the underlying weakness that has been the overriding theme of 2015. As the key support level of 1.0500 comes into focus, there is potential for a [..]

European Session – Dollar rallies to 5-year high versus Swiss Franc, gold tumbles, ECB in focus

Posted on November 27, 2015 at 3:22 pm GMT

The US dollar made a big turnaround in Europe to recover Asian session losses. A sharp jump against the Swiss franc led to dollar strength against most major counterparts. The greenback jumped almost 1% versus the swissie to hit a five-year high of 1.0326, the highest since August 2010. While there were no reports of an intervention by the Swiss National Bank in the currency markets, there was speculation that the SNB may respond to the anticipated easing from the [..]

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