News / Page 185

Technical Analysis – German share index rallies for second day but still stuck in bear territory

Posted on August 26, 2015 at 2:25 pm GMT

The German share index was gaining momentum during the day as it recovers from the 8-month low it set on August 24. Prices have met resistance around 10180 for a second day as the index looks to reclaim the 50% of the Fibonacci retracement level at 10389. Further upward momentum is needed to break above the 38.2% Fibonacci retracement level of the October 2014-April 2015 upleg at 10870, which would take it closer to the 200-day moving average. RSI and [..]

European Session – Dollar gains on durable goods orders, euro slides as Praet talks QE

Posted on August 26, 2015 at 2:20 pm GMT

The dollar was generally stronger against the euro, sterling and the yen but not so much against the commodity currencies like the Canadian dollar or Australian dollars. Firmer US yields provided some support to the greenback and risk sentiment somewhat improved after Monday’s panic selling especially in equity markets, that was precipitated by China’s stock market tumble. Ever since Beijing undertook more stimulus measures which included rate cuts and liquidity injections, markets have appeared to be calmer. Giving additional support [..]

Emerging market currencies hit hard by China worries and slump in commodity prices

Posted on August 26, 2015 at 11:52 am GMT

Emerging market currencies have been steadily falling against the dollar over the past year on rate rise speculation in the US and declining commodity prices, particularly crude oil. But with the worsening slowdown in the Chinese economy and the recent turmoil in China’s stock market, their depreciation has accelerated in recent weeks. Low liquidity in financial markets has also contributed to the exaggerated volatility in currency markets. The prospect of interest rates going up in the US has led to [..]

Asian Session – China rate cut fails to stabilize markets; dollar edges higher

Posted on August 26, 2015 at 7:37 am GMT

Financial markets around the world remain volatile as China’s rate cut and reduction in the reserve requirement ratio failed to convince investors that the move would be enough to calm markets. The People’s Bank of China cut its one-year lending rate by 0.25% and the reserve requirement ratio for large banks by 0.50%. European equities were boosted by the measures as the announcement came in European trading after Asian markets had closed. Major indices in Europe closed up between 3% [..]

Technical Analysis – Gold holds bearish bias below 1200

Posted on August 26, 2015 at 7:15 am GMT

Gold has remained below the key psychological level of 1200 since the end of June. Prices are challenging the 61.8% Fibonacci retracement of the rise from the 2008 low (681.43) to the 2011 high (1920.80). This was a record high and since then, prices have been falling and making lower peaks. Looking at the weekly chart, the outlook is bearish especially after the 50 and 100-week moving averages crossed below the 200-week moving average. Also the MACD is in negative [..]

European Session – Euro loses safe haven flows to fall below 1.15 as PBOC rate cut shifts risk

Posted on August 25, 2015 at 2:33 pm GMT

Currency markets saw a turnaround on Tuesday after Monday’s sharp moves. The safe havens like the euro and the yen reversed on broader risk appetite, after the introduction of further monetary stimulus in China. The country’s central bank (PBOC) cut interest rates as well as the reserve requirement ratio (RRR) today in an effort to prop up the exchange rate and to halt the stock-market tumble. Today’s rate cuts come after the PBOC’s liquidity injections into the markets early on [..]

Technical Analysis – AUDUSD rebounds from 6-year lows; outlook bearish

Posted on August 25, 2015 at 2:02 pm GMT

AUDUSD was back above the 0.72 handle after hitting a fresh 6-year low of 0.7033 on Monday. The intra-day momentum has weakened slightly as the pair has come off highs of 0.7249. Further upward momentum is possible as RSI and the stochastics are still pointing up but is likely to be weak. There is no change to the medium term outlook and prices remain in bearish territory below the Ichimoku cloud and the moving averages. Monday’s low of 0.7033 provides [..]

China cuts rates by 0.25% and lowers reserve requirement ratio by 0.50%

Posted on August 25, 2015 at 12:24 pm GMT

China’s central bank, the People’s Bank of China (PBOC), surprised the markets on Tuesday by announcing a reduction in interest rates, cutting its one-year loan rate to 4.60% from 4.85%. The one-year deposit rate has been cut by 0.25% to 1.75%. The PBOC also cut its reserve requirement ratio (RRR) for most large banks by 50 basis points to 18.0%, effective as of September 6. This is the fourth rate cut so far this year and the third reduction in [..]

Asian Session – Global stocks stabilize but China markets plunge again; dollar firmer

Posted on August 25, 2015 at 7:37 am GMT

Global equities slumped on Monday as concerns grow on the state of China’s economy and the ongoing stock market sell-off in China causes alarm in world markets. European stock markets closed down by around 5% on Monday but US equities staged a late rally to recoup earlier heavy losses. The Dow Jones Industrial had dropped by 1,000 points soon after trading opened but cut its losses to 588 points to close 3.6% lower. The S&P500 also moved higher from the [..]

Technical Analysis – USDJPY off 7-month low but bearish below 120.00

Posted on August 25, 2015 at 7:22 am GMT

USDJPY came under big selling pressure on Monday to break through the key psychological level of 120.00 and down to a 7-month low of 116.19. The market is also below the daily Ichimoku cloud and this gives a bearish bias. The RSI and stochastic both fell into bearish territory. They are indicating oversold conditions, calling for a correction or consolidation in the near term. We saw a bounce back in early Tuesday trading but the 120.00 level has proven to [..]

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