News / Page 154

Eurozone PMI points to activity rebounding to 4½-year high

Posted on November 23, 2015 at 11:26 am GMT

The latest Markit flash PMI readings for the Euro area have shown a surprise uptick in Eurozone activity in November. The flash reading of the composite PMI, which measures all activity across the Eurozone, rose to a 4½-year high of 54.4 in November from 54.0 in October. The figure was higher than consensus estimates of 53.9. There was improvement in employment, new orders, and backlogs of work, which all rose to 54-month highs. The services sector performed more strongly than [..]

Asian Session – Euro hits fresh 7-month low; commodities continue to slide downwards

Posted on November 23, 2015 at 8:43 am GMT

The US dollar clung on to Friday’s gains and was trading near 7½-month highs as the prospect of higher interest rates continued to support the greenback. On Saturday, San Francisco Fed President John Williams reinforced the view that the Fed is on course to raise rates at its next meeting. Williams said that if the Fed continues to get good data on the economy then there’s a “strong case to be made in December to raise rates”. The greenback climbed [..]

Technical Analysis – EURGBP tests key 0.7000 level, scope for further downside

Posted on November 23, 2015 at 8:02 am GMT

EURGBP price action since mid-October has been to the downside and the pair has almost retraced all of the rise from 0.6935 to 0.7492 (July to October rise). Prices are testing the key psychological level of 0.7000 and this is now a key support area since last week. Technical indicators are giving bearish signals and there is scope for a further downside move towards 0.6935. The tenkan-sen and kijun-sen lines are negatively aligned and falling, while the market is below [..]

European Session – Euro under pressure below 1.07 after Draghi reiterates ECB easing bias

Posted on November 20, 2015 at 3:23 pm GMT

The euro came under pressure after ECB President Mario Draghi reaffirmed today the central bank’s bias to easing in December. Speaking in Frankfurt at the Euro Finance Week Conference, Draghi said the ECB will “do what it must” to lift inflation as quick as possible. Draghi signaled that the ECB could use many tools at once, which include amending its current asset purchase program (QE) with regards to its pace, duration, composition, as well as cutting interest rates. Thus, the [..]

Stocks up, commodities down and the effects on currency markets

Posted on November 20, 2015 at 2:57 pm GMT

Some analysts have pointed to an interesting dichotomy during the past few days. One the one hand, risk assets such as stocks, have been rallying and the S&P 500 is not far from its all-time high. On the other hand, commodities and particularly metals and energy, are hitting multi-year lows because of a slowdown in global growth and particularly demand from emerging markets. In theory, healthy economic growth should lead both commodities and stocks to move higher. Therefore it can [..]

Technical Analysis – USDCNH bullish near 2-month highs

Posted on November 20, 2015 at 2:56 pm GMT

USDCNH has been looking increasingly bullish since climbing above the 200-day moving average in early November. The pair had retraced around 75% of its gains following the yuan’s devaluation on August 11-12, to fall from its August 12 high of 6.5933 to a low of 6.3141 on October 12 and 30. Concerns about the duration and depth of China’s economic slowdown and increased capital outflows on lower interest rates outlook have driven USDCNH back higher over the past month as [..]

Week Ahead – Eurozone PMI, US and UK 2nd estimate of GDP and Japan inflation to be watched

Posted on November 20, 2015 at 12:55 pm GMT

The key indicators next week will be the flash November PMI readings for the Eurozone and second estimates of third quarter GDP figures for the United States and the United Kingdom. But CPI and household spending data from Japan will also be closely watched. The flash November PMI data for the Eurozone will start the week on Monday. The manufacturing and services PMI are released for Germany, France and the euro area as a whole. Manufacturing PMI in the Eurozone [..]

Asian Session – Dollar losses help commodities rebound but oil still under pressure

Posted on November 20, 2015 at 8:27 am GMT

Commodity prices bounced off from recent multi-year lows as copper and gold extended Thursday’s gains in today’s Asian trading. Gold prices were slightly firmer at $1082 while copper recovered from yesterday’s fresh 6-year low of $2.0555 to climb to $2.0790 in late Asian session. Crude oil prices bucked the trend though and continued to come under pressure as the near term outlook remains on the downside due to weakening demand and oversupply. US oil futures were slightly down at $41.78. [..]

Technical Analysis – EURJPY maintains bearish bias below 200-day MA

Posted on November 20, 2015 at 8:01 am GMT

EURJPY maintains its bearish bias and is being capped by the tenkan-sen line. There is currently strong resistance at the 61.8% Fibonacci retracement line at 131.77 which is of the rise from 126.08 to 141.04 (April to June rise). Failure to close above this line will keep downside momentum strong with scope for a further fall towards the next Fibonacci level (76.4%) at 129.27. The market is below the daily Ichimoku cloud and below the 200-day moving average and these [..]

European Session – Sterling shrugs off weak UK retail sales, dollar down despite fall in jobless claims

Posted on November 19, 2015 at 3:05 pm GMT

Markets were upbeat on Thursday as a result of more clarity coming from the FOMC minutes which indicated that December might be the month when we finally see that first rate hike. But at the same time the Fed also seems to be indicating in its minutes that the pace of tightening will be more gradual. As a result there was a weakening of the US dollar index. The dollar backtracked against most major currencies and commodities rebounded. The euro [..]

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