News / Page 152

UK Q3 GDP unrevised as jump in imports drags down on growth

Posted on November 27, 2015 at 3:10 pm GMT

Second estimates of GDP growth in the United Kingdom did not deliver any surprises as the data was in line with expectations. Quarter-on-quarter growth was unrevised at 0.5%, while the year-on-year rate was also unchanged at 2.3%. However, the detailed analysis of GDP growth and its components shed some more light on the state of the UK economy, particularly, the growing deterioration of the UK’s trade situation. Exports grew by just 0.9% during the quarter as the stronger pound and [..]

Post-thanksgiving trade session sees volatility

Posted on November 27, 2015 at 2:23 pm GMT

Friday’s trading session following the Thanksgiving Thursday holiday is traditionally a quiet affair as many US traders remain away from their desks the day following the holiday. The trading day itself is shortened (half-day) and there are no US data releases. This results in a lack of liquidity and thin trading conditions as this is a day when big real money investors tend not to execute their orders. When these conditions occur, two things can happen. Either trading itself becomes [..]

Falling unemployment in Japan fails to spur spending and consumer prices

Posted on November 27, 2015 at 1:20 pm GMT

Data out today showed Japan’s labor market continued to strengthen as unemployment fell to a 20-year low in October. The unemployment rate dropped to 3.1% in October against expectations it would stay unchanged at 3.4%. However, in what could be a worrying trend, household spending declined month-on-month for the second month in-a-row. Household consumption was down by 2.4% y/y in October, sharply below estimates that it would rise by 0.1%. It follows a 0.4% drop the prior month. The Bank [..]

Week Ahead – ECB policy meeting and US nonfarm payrolls to take centre stage

Posted on November 27, 2015 at 9:13 am GMT

After weeks of signalling the possibility of extra stimulus in December, the European Central Bank (ECB) has raised market expectations of a major policy change next week in a bid to lift Eurozone inflation. Meanwhile, nonfarm payrolls numbers in the United States could be the last key data to seal the deal for a December rate hike. Before that though, Japanese industrial production figures for October should be interesting to watch on Monday. With signs of industrial output starting to [..]

Asian Session – Yen firmer on lower unemployment; dollar slides in thin trading

Posted on November 27, 2015 at 8:39 am GMT

Unemployment in Japan dropped to a 20-year low today as the unemployment rate fell from 3.4% in September to 3.1% in October. But it was a mixed picture for inflation as overall CPI rose but core CPI remained negative. National CPI increased to 0.3% y/y in October from 0.0% the prior month. However, CPI excluding food and energy, disappointed and fell to 0.7% and was below estimates of 0.8%. Also out today was household spending figures, which declined for the [..]

Technical Analysis – EURJPY declines to 7-month low, strong bearish bias

Posted on November 27, 2015 at 7:59 am GMT

EURJPY has declined to a seven-month low to test the key 130.00 level. The pair has now found support at this area. Failure to hold above this level would target 129.27, a key Fibonacci level. It is the 76.4% retracement of the rise from 126.08 to 141.04. A further decline would target 126.08, resulting in a retracement of the whole rally to 141.04. The 61.8% Fibonacci at 131.77 is a barrier to the upside. The bias is to the downside [..]

European Session – Quiet session due to US Thanksgiving holiday and light economic calendar

Posted on November 26, 2015 at 3:24 pm GMT

Currency markets were relatively quiet on Thursday as there was a light economic calendar and US markets were closed for the Thanksgiving holiday. This curbed activity and kept trading volumes low. Equity markets though saw more action, especially in Europe where Germany’s DAX index was up 1.5% and the Stoxx Europe 600 rose 0.8%. The euro traded in a small range against the dollar. It touched a key support level at 1.0600 early in the European session before recovering to [..]

US personal consumption slows in October but capital goods spending jumps

Posted on November 26, 2015 at 12:35 pm GMT

A batch of key indicators for the US economy out on Wednesday showed that consumers are saving more and spending less even as incomes rise. However, there are signs that the manufacturing sector could be coming out of the doldrums as spending on capital goods increased in October for the first time in three months. Personal income rose by 0.4% m/m in October, in line with consensus estimates and faster than September’s upwardly revised 0.2% gain. The increase was led [..]

Technical Analysis – EURCAD bearish bias, support at 200-day moving average

Posted on November 26, 2015 at 12:33 pm GMT

EURCAD fell to a 4-month low of 1.4072 on Wednesday and is now finding support from the 200-day moving average around 1.4104. A break below this key support area would target 1.3990, a key Fibonacci level. It is the 61.8% retracement of the rise from 1.3021 to 1.5589 (April to August rise). Meanwhile to the upside prices would meet resistance at the 50% Fibonacci at 1.4291. The bias is to the downside though, as technical indicators are giving bearish signals. [..]

Asian Session – Dollar eases after touching 8-month high; aussie slides on weak capex

Posted on November 26, 2015 at 12:21 pm GMT

The US dollar climbed to an 8-month high on Wednesday after a set of key economic indicators came in broadly positive, reiterating expectations that the Federal Reserve will raise interest rates in December. The dollar index, which measures the value of the dollar against a basket of other currencies, peaked at 100.17 – the highest level since March. US durable goods orders data out yesterday rose more than expected by 3.0% month-on-month in October. Initial weekly jobless claims were also [..]

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