News / Page 171

IFM lowers global growth forecast on emerging market worries

Posted on October 7, 2015 at 2:55 pm GMT

The IMF has downgraded its growth outlook for the world economy with improved growth in advanced economies offset by weaker growth in developing economies. The forecast for world growth for 2015 has been revised down to 3.1% from 3.3% in July’s forecast. This is slower than 2014’s 3.4% but it is expected to pick up to 3.6% in 2016. Economic growth in emerging markets and in developing economies is forecast to slow to 4.0% in 2015, making it the 5th [..]

European Session – Sterling rises on UK industrial production data, Canadian dollar gains on oil price surge

Posted on October 7, 2015 at 2:46 pm GMT

Sterling was one of the best performing major currencies today as it rallied above the key 1.53 level on stronger UK industrial production data. The pound accelerated its gains against the dollar to reach a two-week high of 1.5321 following the release of the August numbers which came in at 1.0% month-on-month to beat expectations of a 0.3% rise. Meanwhile, manufacturing production (which is a large component of industrial production), rose by 0.5% month-on-month, above a 0.4% increase that was [..]

Kuroda gives little clues on further stimulus as BoJ keeps policy on hold

Posted on October 7, 2015 at 10:33 am GMT

The Bank of Japan delivered no surprises when it announced to maintain monetary policy at current levels at the end of its two-day meeting today. A recent worsening outlook on the world economy and a slowdown in Japan’s largest trading partner, China, had led to some analysts to think that the Bank of Japan would ease policy. But in the statement that followed the decision, the Bank sounded confident that they would be able to achieve their 2% target. While [..]

Asian Session – Yen firms after Bank of Japan keeps policy unchanged

Posted on October 7, 2015 at 7:36 am GMT

The yen was firmer against major currencies today after the Bank of Japan kept its monetary policy unchanged at its latest meeting. The decision comes despite recent data showing industrial production falling for two consecutive months and inflation remaining close to zero. In its statement, the Bank of Japan said that the economy is expected to continue “recovering moderately” but acknowledged that the slowdown in emerging economies has affected Japanese exports and production. Although the majority of analysts were not [..]

Technical Analysis – AUDNZD stuck in range, downside risk remains

Posted on October 7, 2015 at 7:03 am GMT

AUDNZD has been consolidating in a range for the past three months. Prices have been confined within the Bollinger Band and are currently in the lower end of the band. A break below 1.0850 would increase downside momentum with scope to fall towards the 200-day moving average at 1.0745. RSI is falling and is in bearish territory below 50 so the risk of further downside exists. A break below the 200-day moving average would shift the current sideways market structure [..]

European Session – Euro rallies above 1.12 , dollar weighed as US trade deficit widens

Posted on October 6, 2015 at 2:28 pm GMT

The euro stabilized just above the key 1.1200 level, reaching as high as 1.1238 despite disappointing German factory orders that fell 1.8% month-on-month in August versus a gain of 0.5% expected. Meanwhile the prior reading was revised from -1.4% to -2.2%. Despite the deterioration in the data, the euro rose due to the broader risk appetite in the markets. But gains versus the dollar in the long term are expected to be limited due to the diverging monetary policies between [..]

Technical Analysis – EURUSD consolidating around 1.12; bias is neutral

Posted on October 6, 2015 at 1:25 pm GMT

EURUSD continued trading in a range today, fluctuating around the key 1.12 level. The intra-day upside bias is strong but this is not likely to be sustainable in the near term. RSI is only slightly above 50 and the stochastics are falling. Looking at the broader view, prices remain within the upward trending channel that’s been forming since mid-March. The positive trend is supported by the bullish crossover of the 50-day moving average with the 200-day moving average. But the [..]

Aussie moves higher after RBA maintains rates at 2%

Posted on October 6, 2015 at 10:04 am GMT

The Reserve Bank of Australia kept its cash rate unchanged at 2.00% for the fifth month today following its October meeting. The decision was widely expected but a surprise rate cut of 0.25% had not been ruled out given the weakening growth outlook for Australia’s largest trading partner, China. In its statement, which was very similar to the September statement, the RBA noted that “some further softening conditions in China and east Asia” and lower commodity prices had led to [..]

Asian Session – Aussie climbs after RBA keeps rates on hold; dollar steady

Posted on October 6, 2015 at 7:23 am GMT

The dollar was broadly steady in Asian trading on improving risk appetite following a strong close on Wall Street for US equities on Monday. Asian stocks also extended their gains on Tuesday, boosted by lowered expectations of the Fed raising interest rates this year after last week’s poor jobs data. Yesterday’s disappointing ISM non-manufacturing composite and service PMI numbers had limited impact on the dollar. The Reserve Bank of Australia kept its cash rate unchanged at 2.00% today as expected, [..]

Technical Analysis – AUDUSD breaks out of descending channel

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

AUDUSD broke out of the descending channel that started from May 2015 at 0.8162. Prices also broke above the kijun-sen line which was acting as a resistance level at 0.7098. The RSI has also turned bullish and has moved above 50. These are positive signals for the AUDUSD pair but are not sufficient to shift the bias. The near term bias is neutral as prices have been consolidating around the key 0.70 level. Prices would need to break above the [..]

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