News / Page 17

Asian Session – Yen weakens after softer GDP data out of Japan

Posted on February 13, 2017 at 8:18 am GMT

The yen weakened immediately after the release of Japan’s fourth quarter GDP report which showed growth of 0.2 per cent quarter-on-quarter, missing estimates of 0.3 per cent growth. The data suggested the Bank of Japan will likely leave its monetary policy unchanged for a longer period of time. The GDP figure came in lower despite a boost to exports from a weaker Japanese currency. The softer yen helped the dollar rise to a two-week high of 114.16 in early Asian [..]

Technical Analysis – EURUSD neutral above 50-day moving average

Posted on February 13, 2017 at 7:13 am GMT

EURUSD has been reversing its upward trend that took place from early January until early February. The pair fell to a more than 3-week low of 1.0607 on Friday and has found support at the 50-day moving average. The market has retraced half of its gains made since early January. A further decline would bring prices to the 50% Fibonacci retracement level of the rally from 1.0339 to 1.0828. (January 3 to February 2 upleg). The 50% Fibonacci lies at [..]

Week Ahead – Inflation and Japan GDP in focus; Yellen testimony also eyed

Posted on February 10, 2017 at 4:17 pm GMT

Inflation will be the most watched data next week as China, the UK and the US report their monthly CPI figures. Japanese GDP numbers will also be important as Japan’s economy continues to show increasing signs of strength, while the Riksbank’s latest monetary policy meeting will likely attract attention too. However, the week’s highlight could come from Fed Chair Yellen’s testimony in Congress, which will be the first since Trump took office. Japan to post fourth straight quarter of growth [..]

European Session – Political uncertainty in Europe; Canadian dollar jumps on strong jobs report

Posted on February 10, 2017 at 4:04 pm GMT

Today was a relatively quiet day in terms of economic data with the markets still focusing on US President Donald Trump’s remarks on making a major tax announcement soon and political uncertainty in the euro area. The University of Michigan preliminary index of US consumer sentiment indicated a slight drop in February. The index printed a three-month low of 95.7, missing estimates for a reading of 97.9. The February reading was lower than January’s more-than-a-decade high of 98.5. Overall the [..]

Technical Analysis – EURJPY medium-term bullishness at risk below 50-day moving average

Posted on February 10, 2017 at 3:01 pm GMT

EURJPY has been trading below 123.00 for the most part of this year so far. While medium-term bullishness is still intact, the bias in the near term is bearish, especially after the market has fallen below the 50-day moving average since the beginning of February. The decline in prices coincided with a drop in momentum. Consequently, the RSI indicator fell into bearish territory below 50. EURJPY found support at around 119.50 before turning back up. There is now scope to [..]

Technical Analysis – EURGBP near-term bearish with the strength of the signal under question

Posted on February 10, 2017 at 8:27 am GMT

EURGBP is currently up but little changed relative to yesterday’s close. The short-term sentiment given by the RSI is negative as the indicator is currently at 46, below the 50 mark distinguishing positive from negative short-term bias. Adding to this, the MACD is slightly negative and below the red signal line. The fact that RSI and MACD are relatively close to 50 and 0 respectively is perhaps indicative that the bearish sentiment is not that strong and that mostly sideways [..]

Asian Session – Gold under pressure as dollar firms on Trump tax pledge; China trade surplus widens

Posted on February 10, 2017 at 8:20 am GMT

The strength of the dollar followed through from yesterday’s US session on President Donald Trump’s tax pledge. Meanwhile, upbeat trade data out of China showed signs of stability in the world’s second largest economy, helping lift risk appetite in today’s Asian markets. In January, the figures were strong on both exports and imports in China. Exports jumped 7.9 per cent year-on- year in dollar terms, beating forecasts, while imports rose by 16.7 percent, also beating estimates. The trade surplus widened [..]

European Session – Dollar surges above 113 yen on Trump tax comments

Posted on February 9, 2017 at 4:05 pm GMT

The yen fell back on Thursday as yesterday’s risk aversion ebbed slightly, although the recent uncertainty generated from Trump’s policies, the French elections and Brexit continued to weigh on market sentiment. The US dollar recovered from its earlier low of 111.70 yen to hit a European session high of 113.19 yen following the release of stronger-than-expected jobless claims out of the US and an announcement on taxes by the US President. Weekly jobless claims fell to a fresh 43-year low [..]

Forex News – RBNZ signals rates to stay low for considerable period

Posted on February 9, 2017 at 3:32 pm GMT

The New Zealand dollar weakened sharply early on Thursday after the Reserve Bank of New Zealand signaled that it may keep rates at record lows for at least the next two years. The RBNZ kept the overnight cash rate (OCR) unchanged at 1.75 percent in today’s policy meeting after having previously been in an easing mode and cutting the OCR three times in 2016. The Bank’s forward guidance remained neutral and RBNZ Governor Graeme Wheeler did not want to encourage [..]

Technical Analysis – WTI Oil Futures still consolidating; holds onto bullish outlook

Posted on February 9, 2017 at 1:01 pm GMT

WTI oil futures have moved back above the 50-day moving average today after falling below it on Tuesday for the first time since November. However, despite two days of gains, RSI has only recovered to just above the 50 level that separates bullish from bearish territory. The near-term bias is therefore neutral as prices continue their 2-month-long consolidation. If today’s upside momentum holds, prices will likely meet resistance around the 53.85 level, which has been acting as a key resistance [..]

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