News / Page 175

Markets await Yellen speech for clarity but ECB dampens hopes of immediate easing

Posted on September 24, 2015 at 11:27 am GMT

ECB President Mario Draghi on Wednesday dampened expectations that the European Central Bank will announce further stimulus measures anytime soon saying it was “too early to judge”. While Draghi acknowledged the downside risks to Eurozone growth and inflation outlook posed by the recent developments in China and in financial markets, he said more time would be needed to assess their full impact. The slowdown in China and other emerging economies, the recent appreciation of the euro and falling commodity prices [..]

Asian Session – Euro holds on to gains after Draghi comments as dollar eases

Posted on September 24, 2015 at 7:25 am GMT

Manufacturing activity slowed in Japan in September according to the flash reading. The Markit/JMMA manufacturing PMI fell to 50.9 in September from 51.7 previously. This was below forecasts of 51.2. The index held above 50, which indicates expansion, but more worrying was a sharp fall in new export orders, which contracted at the fastest pace in 2½ years. Tokyo shares closed over 2% lower on Thursday as markets reopened after a three-day national holiday and Japanese auto stocks were dragged [..]

Technical Analysis – USDCAD hits fresh 11-year high, scope for further upside

Posted on September 24, 2015 at 7:07 am GMT

USDCAD hit a new 11-year high of 1.3356 on Wednesday. More upside momentum is possible as RSI is in bullish territory, so there is scope for a move towards the next key psychological level at 1.3400. Failure to rise above yesterday’s peak would keep the pair in neutral. The market has been consolidating since the end of August above 1.3100. As long as support holds at 1.3100 then the outlook will remain bullish. The Ichimoku cloud and 200-day moving average [..]

European Session – Euro rises on less-dovish Draghi, dollar above 120 yen

Posted on September 23, 2015 at 2:39 pm GMT

Sterling was one of the worst performing major currencies today, with cable falling into the 1.52 handle to a two-week low of 1.5230. Pound weakness helped the euro advance by against it to reach the 0.73 handle. The cross rallied to as high as 0.7337. The main risk to the British currency will be an upcoming speech by Bank of England policy maker Benjamin Broadbent later tonight. The euro rallied on a not-so-dovish Mario Draghi. The ECB President was testifying [..]

Technical Analysis – AUDJPY back below 85 as bias turns bearish

Posted on September 23, 2015 at 12:58 pm GMT

AUDJPY extended its losing streak for a third day on increased downward momentum, dipping below the 85 handle. The near term bias has turned bearish again with both RSI and the stochastics trending down and in negative territory. The nearest resistance is at 87.50, the September 17 high, which is not too far off from the previous resistance level set by the Kijun-sen line around 87.30. The pair has been trading in a range since August 24, with the bottom [..]

China Manufacturing PMI falls to 6½-year lows while Eurozone PMI eases

Posted on September 23, 2015 at 10:37 am GMT

Flash PMI data out on Wednesday showed manufacturing activity continuing to shrink in China, but the Euro area remains buoyant as output was stable in September. The Caixin flash manufacturing PMI for September came in at 47.0 in September, below consensus estimates of 47.5 and down from 47.3 the previous month. This was the 7th consecutive month of a reading below 50, which indicates contraction, and takes output to a 6½ -year low. Decreases were reported in most areas including [..]

Asian Session – Dollar eases after weak China manufacturing PMI

Posted on September 23, 2015 at 7:29 am GMT

Manufacturing activity in China fell to a 6½-year low in September according to the latest PMI survey from Caixin. The flash reading showed manufacturing PMI falling to 47.0 in September from 47.3 in August. This was below estimates of 47.5 and was the 7th consecutive month that the reading was below 50. The data does little to indicate that the slowdown in China is bottoming out. China’s President, who is visiting the US, said that Beijing remains committed to economic [..]

Technical Analysis – GBPUSD under pressure but outlook remains neutral

Posted on September 23, 2015 at 7:10 am GMT

GBPUSD is under pressure and is testing support at the 200-day moving average at 1.5340. The intra-day bias remains to the downside as the RSI is below 50. A break below the 200-day moving average would signal further downside towards the September 4 low of 1.5162. To the upside prices will first find resistance at the convergence of the tenkan-sen and kijun-sen line at 1.5490. Above this, the Ichimoku cloud will act as a barrier. In the bigger picture, GBPUSD [..]

European Session – Euro falls to 1.11, dollar strong on policy divergence

Posted on September 22, 2015 at 2:35 pm GMT

The main drivers of the currency markets today were risk aversion and the return of expectations of a Fed rate hike. This led to a stronger dollar against most major counterparts except against the safe haven yen. The greenback bounced back from lows hit on Friday in the wake of the Fed’s decision not to raise rates immediately. However, recent comments from several Fed policy makers (Bullard, Lockhart and Williams), suggested that a rate increase remained possible, even for this [..]

Technical Analysis – US oil futures in consolidation mode; outlook neutral

Posted on September 22, 2015 at 2:03 pm GMT

US oil futures have been consolidating since the late August rally that saw prices peaking at 49.29 came to a halt. Prices have been moving in a range of between 49.29 and 43.20 for much of the past month and subsequently moving into the downward sloping Ichimoku cloud. The current neutral bias is likely to continue in the near and medium term as RSI fluctuates around 50 and the cloud begins to move sideways. Immediate resistance is provided by the [..]

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