News / Page 165

China cuts rates again by 0.25% and lowers reserve ratio

Posted on October 23, 2015 at 1:50 pm GMT

The People’s Bank of China (PBOC) has cut interest rates for a sixth time since November 2014 as it tries to stimulate the economy, which has slowed down markedly in 2015. The central bank cut its 1-year lending rate by 0.25% to 4.35% and its 1-year deposit rate by 0.25% to 1.50%. The reserve requirement ratio (RRR) was also cut, for the fourth time this year, by 50 basis points to 17.5% and applicable to most large banks. Additionally, the [..]

Week Ahead – All eyes on FOMC, BoJ and RBNZ meetings but Q3 GDP also in focus

Posted on October 23, 2015 at 12:27 pm GMT

The coming week is set to be a busy one both in terms of data and for central bank activity. The Fed will hold its October FOMC meeting, while the Bank of Japan and Reserve Bank of New Zealand will also meet. The key indicators to watch for will be US and UK third quarter GDP and Eurozone flash CPI. Starting the week are the German IFO survey for business confidence and expectations. It will be interesting to see how [..]

Investment themes: Draghi stimulus promise hits euro, helps risk assets rebound

Posted on October 23, 2015 at 8:46 am GMT

The news that the ECB would reexamine its stimulus program at its meeting on December 3 – as well as consider cutting rates further into negative territory – came as a surprise to markets this week. This had a profound influence on various financial instruments, but it remains to be seen whether the medium- or long-term picture will be altered by such a move by the ECB. Prior to this week’s meeting, a consensus was forming that questioned whether the [..]

Asian Session – Yen firms on better-than-expected PMI; euro regains 1.11

Posted on October 23, 2015 at 7:21 am GMT

The euro extended yesterday’s slump when it suffered a sharp sell-off after ECB President Mario Draghi hinted at additional monetary stimulus. Speaking at the press conference following its October policy meeting, Draghi said that the degree of monetary policy accommodation will need to be re-examined at the December meeting when new inflation projections will be available. Markets were also surprised that the Governing Council discussed lowering the deposit rate, which Draghi had previously stated it would not be cut further [..]

Technical Analysis – EURUSD downside bias after breaking below cloud

Posted on October 23, 2015 at 6:42 am GMT

Intraday bias remains to the downside for EURUSD after breaking below the daily Ichimoku cloud on Thursday. The RSI is back below 50 which suggests limited upside momentum. The 200-day moving average is critical as prices are testing this area around 1.1109. Failure to provide support will see prices move down towards the July 20 low of 1.0807. To the upside, the base of the cloud and the 50-day moving average are acting as a strong barrier around 1.1259. Looking [..]

Dovish ECB sends euro plummeting below 1.12 dollars

Posted on October 22, 2015 at 2:56 pm GMT

Dovish ECB sends euro plummeting below 1.12 dollars The European Central Bank raised the prospect of further monetary stimulus as early as December as it highlighted downside risks to economic growth and inflation. Weaker growth in emerging markets and developments in financial and commodity markets are seen as weighing on the euro area’s growth prospects. Speaking at the press conference, which followed the announcement that monetary policy was kept unchanged, ECB President Mario Draghi hinted at the possibility of adjusting [..]

European Session – Euro tumbles below 1.12 on dovish Draghi, dollar up on US jobless claims, home sales

Posted on October 22, 2015 at 2:37 pm GMT

The highlights of the European session were the UK retail sales data and the European Central Bank policy decision and press conference. In the North American session, US data included jobless claims, existing home sales and the index of leading indicators. Sterling rallied on UK retail sales numbers which rose the most in two years in September by 1.9% month-on-month. This was mainly due to a surge in food and drink sales during the Rugby World Cup event in Britain. [..]

Pound surges on robust UK retail sales growth in September

Posted on October 22, 2015 at 10:45 am GMT

UK consumers splashed out in September as the Rugby World Cup boosted spending during the month. Retail sales jumped by 1.9% on the month to give a year-on-year rise of 6.5% – the highest rate since November 2014. Consensus estimates were for retail sales to increase by 0.3% month-on-month and 4.8% annually. However, there was a downward revision to August’s figure, which was revised lower from 0.2% to -0.4% month-on-month. Excluding fuel, retail sales were up 5.9% year-on-year. The biggest [..]

Asian Session – Euro edges lower ahead of ECB; dollar mixed

Posted on October 22, 2015 at 7:12 am GMT

China’s main indices attempted a rebound on Thursday after yesterday’s 3% slump, which was the biggest drop in five weeks. But earlier gains were pared to stand only marginally higher in late Asian session. The Australian dollar remained under pressure on renewed concerns on the health of China’s economy. The aussie hit a low of 0.7181 against the US dollar but later recovered to around 0.7200. Crude oil prices also attempted to move higher following three days of sharp losses. [..]

Technical Analysis – EURSEK pauses rally at cloud base

Posted on October 22, 2015 at 6:30 am GMT

EURSEK paused its rise from the October 13 low of 9.2314 after finding strong resistance at the bottom of the Ichimoku cloud. The high reached on Wednesday was 9.4479. On the daily chart, sustained trading above the kijun-sen line and a RSI above 50 would keep the upside bias in the near term. But a failure to rise above the cloud top and a fall below the kijun line at 9.3789 would bring the market back into the range it [..]

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