News / Page 164

UK economy grows less than expected in Q3; pound weakens

Posted on October 27, 2015 at 11:30 am GMT

The UK economy cooled in the third quarter of the year as a slump in construction output proved a drag. GDP expanded by an estimated 0.5% between the second and third quarters, preliminary figures showed today. This was below consensus forecasts of 0.6% growth and compares with a robust 0.7% growth in the previous quarter. The year-on-year rate also slowed, coming in at 2.3% from 2.4% in the previous quarter. The services sector, which accounts for just under 79% of [..]

Key central bank meetings – especially the Fed’s – to have big FX impact

Posted on October 27, 2015 at 10:23 am GMT

The meeting of the Federal Reserve’s rate-setting committee on Wednesday as well as the Bank of Japan’s on Friday could have major implications for foreign exchange markets. It should be pointed out of course that neither central bank is expected to act according to the majority of analysts. Regarding the Fed, it is clearer that no move is anticipated, whereas for the Bank of Japan, the odds of something happening are higher. Turning attention to the Fed, the ‘will they [..]

Asian Session – Dollar lower in cautious trading ahead of central bank meetings

Posted on October 27, 2015 at 8:28 am GMT

It was a quiet start to Asian trading on Tuesday with little economic data to excite the markets apart from New Zealand trade numbers. New Zealand’s trade deficit widened to NZ$1.2 billion in September as exports fell from August but imports rose by more than expected. The New Zealand dollar briefly plunged to 0.6739 against the US dollar after the data but quickly bounced back to around 0.6777. Asian equities were mostly in negative territory in today’s Asian trading as [..]

Technical Analysis – EURUSD bearish signals intensify after fall below cloud, 200dma

Posted on October 27, 2015 at 8:01 am GMT

Bearish signs have intensified after prices fell back below the daily Ichimoku cloud and below the 50-day and 200-day moving averages. Also the tenkan-sen line has crossed below the kijun-sen line. RSI has fallen below 50. The 200-day moving average is an immediate barrier to the upside around 1.1106. There is scope to fall to 1.0807, the July 20 low. A break below this would pave the way for a test of the multi-year low of 1.0461. Looking at the [..]

European Session – Euro tests 1.10, dollar weak after drop in new US home sales, Fed risk ahead

Posted on October 26, 2015 at 3:10 pm GMT

The euro remained weak today, testing the key 1.10 level against the dollar. The single currency has come under pressure ever since ECB President Mario Draghi hinted last Thursday at a possible increase of QE at the ECB policy meeting in December. The euro did not gain much by better-than-expected German business confidence data released today. The IFO survey weakened to 108.2 in October from a prior 108.5 but beat expectations of a 107.8 result. After reaching a high of [..]

Technical Analysis – US500 stock futures rise above 200-DMA; bias turns bullish

Posted on October 26, 2015 at 3:03 pm GMT

US500 stock futures rose above the 200-day moving average for the first time since August 20, recouping its year-to-date losses in the process. The index has been rallying since the end of September and has retraced more than 61.8% of the July-August downleg. The strong upside momentum has faltered in the hourly RSI and stochastics charts but remains positive in the daily charts suggesting the rally may hold for a while longer in the near term. With prices sharply above [..]

German business confidence falls slightly but expectations improve

Posted on October 26, 2015 at 11:09 am GMT

The Ifo business climate index fell slightly in Germany in October, with the index dropping to 108.2 from 108.5 in September. This is the first fall in three months but forecasts were for an even bigger fall to 107.8 as German industry adjusts to weaker global demand. The impact of the slowdown in global growth was evident in the IFO current assessment index, which fell by a bigger-than-expected amount to 112.6 in October from 114.0. Forecasts were for a reading [..]

Asian Session – Dollar retreats from 2½-month high; equities rally on looser monetary policy

Posted on October 26, 2015 at 8:17 am GMT

The US dollar was lower on Monday but stayed near the 2½-month high it reached on Friday when it rallied on improved risk sentiment. The combination of China’s rate cut, the prospect of further monetary easing by the European Central Bank and positive earnings results by US tech companies gave a boost to global equity markets. European and US share indices closed higher on Friday and Chinese indices were also in positive territory on Monday, though below their peaks from [..]

Technical Analysis – GBPUSD bearish below Ichimoku cloud and 200-day moving average

Posted on October 26, 2015 at 7:19 am GMT

GBPUSD intra-day bias remains on the downside as the market is capped by the 200-day moving average. The pair made several attempts to rise above the Ichimoku cloud last week but failed and fell back below the cloud on October 22. RSI is below 50 in bearish territory. If resistance holds at the 200-day moving average around 1.5328, there is scope for prices to test immediate support at 1.5246 which is the 50% Fibonacci retracement of the upleg from 1.4564 [..]

European Session – Gold and oil tumble while dollar rises after China cuts rates again

Posted on October 23, 2015 at 2:20 pm GMT

The dollar rose above 121 yen after China’s central bank cut interest rates today in an effort to cushion a deepening economic slowdown in its economy. The news of further stimulus in the world’s second largest economy could increase the likelihood of a December Fed rate hike. This caused the dollar to rise against most if its major counterparts. The PBOC (People’s Bank of China) reduced its benchmark one-year lending rate by 25 basis points to 4.35% from 4.6% effective [..]

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