News / Page 158

European Session – Euro bounces back to 1.07, sterling extends higher after mixed UK jobs data

Posted on November 11, 2015 at 3:31 pm GMT

Most currency pairs haven’t moved much from Friday’s post-nonfarm payrolls levels. The exception was the pound which moved higher and further away from Friday’s low that came close to the key psychological level of 1.50. Despite falling ahead of the key UK employment report today, sterling rebounded quickly from a knee-jerk reaction that took it down to 1.5132 versus the dollar after the mixed data. It rose to 1.5191 later. The UK jobs report showed that the ILO unemployment rate [..]

Technical Analysis – German stock futures find resistance below 200-day MA

Posted on November 11, 2015 at 2:45 pm GMT

German stock futures (GER30) have rallied about 18% since the September 29 low of 9299.80. However, prices remain south of the 200-day moving average, finding resistance just below it at 11056. The index remains 12% down from its all-time high of 12433.40 it set on April 13. The near term bias is looking bullish with RSI holding strongly above 50 and the tenkan-sen and kijun-sen lines positively aligned above the Ichimoku cloud. The next resistance for GER30 is 11100. A [..]

UK unemployment falls to 5.3% but earnings growth eases

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

Unemployment in Britain fell to a near 7½-year low in the three months to September, figures out today showed. The ILO measure of unemployment fell to 5.3% in the three months to September from 5.4% in the previous three months. This was the lowest since May 2008 and below estimates that it would stay unchanged. However, the tightening labor market has yet to cause a major squeeze on pay as earnings growth unexpectedly slowed in September. Average earnings was the [..]

Asian Session – China industrial production disappoints; euro recovers above 1.07 dollars

Posted on November 11, 2015 at 8:34 am GMT

Chinese industrial production data disappointed again after coming in below expectations. October industrial production rose by 5.6% year-on-year, slightly weaker than the 5.7% rate in September and below expectations of 5.8%. Along with Sunday’s poor trade data, the figures are a further sign that the Chinese economy is adjusting to a slower pace of growth. However, domestic consumption appears to be holding up as retail sales accelerated slightly to 11% in October. In other data, fixed asset investment eased slightly in [..]

Technical Analysis – NZDUSD downside risk below 0.7000

Posted on November 11, 2015 at 7:50 am GMT

NZDUSD has retraced more than half of the gains it made from the rise from 0.6235 (September 23) to 0.6896 (October 15) on the daily chart. The bias turned increasingly bearish after prices broke below the 50% Fibonacci at 0.6565 and this level is now acting as resistance. The 61.8% Fibonacci is acting as support at 0.6487. The tenkan-sen line crossed below the kijun-sen line, giving a bearish signal and the RSI is below 50, indicating momentum is to the [..]

European Session – Euro dips to 1.06 handle, pound steady ahead of UK jobs

Posted on November 10, 2015 at 3:13 pm GMT

In the absence of any major economic data today, the market focus was on the dollar and expectations of a Fed rate hike. The greenback continued to consolidate its Friday rally and kept other major currencies under pressure. The euro was unable to hold above the key support level of 1.0700 and fell to a seven-month low of 1.0673. The increasing divergence in monetary policy between the Federal Reserve and the European Central Bank, along with recent reports of a [..]

Technical Analysis – Gold strongly bearish despite upside attempts

Posted on November 10, 2015 at 1:51 pm GMT

Gold was attempting to make a second day of gains on Tuesday but was struggling to stay in positive territory. It hit 3-month low of 1085.35 last Friday and has now retraced more than 61.8% of the July 20-October 15 rally. RSI and the stochastics have reversed into negative territory in the hourly charts and remain strongly bearish in the daily charts, indicating on-going downside momentum in the near-term. However, some further upside momentum is possible given that the stochastics [..]

The Fed’s potential rate hike and its implications outside the dollar

Posted on November 10, 2015 at 1:33 pm GMT

The market’s reassessment of the Fed’s rate hike probabilities in December could have a significant impact on other asset classes except foreign exchange. The strengthening of the US dollar of course is the consequence that sticks out, but what about bonds? Stocks? Commodities? Emerging markets? Starting with the easy one, of course the rate hike looks like a negative for bonds as prices go down when yields (or interest rates) rise. However, for bonds with longer maturities, the question is [..]

Australian dollar unmoved by China CPI and business confidence data

Posted on November 10, 2015 at 11:16 am GMT

The Australian dollar shrugged off weak Chinese CPI data and mixed business confidence survey as the prospects of a Fed rate rise in December appeared to weigh more heavily on the currency. Inflation in China fell by a bigger margin than expected in October, dropping to 1.3% from 1.6%, against expectations that it would fall to 1.5%. The weak data is a sign of ongoing deflationary pressures in the Chinese economy as industrial overcapacity, weak global demand and falling commodity [..]

Asian Session – Dollar up and euro down on policy divergence; Chinese inflation falls again

Posted on November 10, 2015 at 8:31 am GMT

The US dollar edged higher in Asian trading on Tuesday as investors increase the odds that the Federal Reserve will raise interest rates in December. The heightened expectations follow Friday’s strong nonfarm payrolls data for October. Boston Fed President Eric Rosengren, who is known to be a dove in the Fed, said in a speech on Monday that December “could be an appropriate time for raising rates, as long as the economy continues to improve as expected”. The greenback rose [..]

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