News / Page 186

European Session – Euro surges to 1.17, yen gains on safe haven flows as equity rout intensifies

Posted on August 24, 2015 at 2:26 pm GMT

Last week’s sell-off in global equity markets intensified today as concerns grew over the health of the Chinese economy and the pace of its slowdown following poor domestic data recently. Adding to concerns was the yuan’s devaluation earlier this month. As the world’s second largest economy stutters, many investors are now lowering their expectations of a rate hike by the Federal Reserve in September. Consequently, the US dollar underperformed today mainly against the euro and the yen but was up [..]

Technical Analysis – US benchmark index slumps to 10-month low deepening the bearish outlook

Posted on August 24, 2015 at 1:48 pm GMT

The US benchmark index was heading for a fifth straight day of losses on Monday as it broke below the 1900 level to hit a low of 1830.40 at the start of US trading. Today’s sell-off to 10-month lows could push prices to test 1812.75, which is the support level from the October 2014 downturn. With prices now sharply below the moving averages and the Ichimoku cloud, the medium-term outlook is looking increasingly bearish. The US index has breached the [..]

China leads plunge in global equities; emerging market currencies hit new lows

Posted on August 24, 2015 at 10:51 am GMT

China’s equity markets saw their biggest one-day drop since 2007 on Monday with the Shanghai SE Composite index closing 8.5% lower. Today’s losses have wiped out the stock market’s gains since the start of the year, though shares do remain around 40% higher than 12 months ago. The lack of any intervention or announcement of new stimulus measures by Chinese authorities over the weekend exasperated the mood of panic in the markets. Shares in other Asian markets also saw big [..]

Asian Session – Share slump continues as dollar and oil fall on China worries

Posted on August 24, 2015 at 7:24 am GMT

Shares in Asia followed the 3% slump in US and European markets on Friday to head for another sharp sell-off on Monday. China’s indices were the worst affected, with the Shanghai SE Composite down by over 7% and the Shanghai/Shenzen CSI 300 index down by 8% in late Asian trading. But shares in Japan and Australia were also hit hard, with Tokyo’s Nikkei 225 closing down by 4.6%. The latest panic in financial markets was triggered by weaker-than-expected manufacturing PMI [..]

Technical Analysis – Gold rallies to 7-week high but remains below 1200

Posted on August 24, 2015 at 7:19 am GMT

Gold has made an impressive rally since the end of July and climbed to 1168.16 on Friday, its highest since July 7. It is now hovering around the 61.8% Fibonacci retracement level of the rise from 681.43 (October 2008) to 1920.80 (September 2011). Prices are now testing this level at 1155.44. If prices move off this level and bounce higher to clear resistance at 1168.16 and past the 200-day moving average, the next target is 1200.00. This is an important [..]

European Session – Euro supported by positive Eurozone PMIs, dollar remains broadly weaker

Posted on August 21, 2015 at 1:50 pm GMT

The euro approached the key 1.13 level against the US dollar to hit a two-month high at 1.1306. Eurozone PMIs released today were mostly positive. The flash PMI for August suggests that the Euro area is still experiencing one of its best periods of economic growth and job creation during the past four years. The Markit flash composite PMI for the Eurozone rose to 54.1 in August from 53.9 in July. Estimates were for a reading of 53.7. The manufacturing [..]

Week Ahead – US data to keep dollar in spotlight; Q2 GDP likely to get revised up

Posted on August 21, 2015 at 1:50 pm GMT

The week ahead will be relatively light in terms of major data with the exception of the United States, which has a busy calendar for the coming week. Figures for new home sales, durable goods and personal spending could prove crucial ahead of the Fed’s September meeting. Second estimates of second quarter GDP data for the US, UK and Germany will also be closely watched. The first of the GDP data will come from Germany with the final estimate for [..]

Eurozone PMI points to increased activity in August but France lags

Posted on August 21, 2015 at 9:34 am GMT

Flash PMI data for the Eurozone showed manufacturing and services activity picking up in August. The Markit flash composite PMI for the Eurozone rose to 54.1 in August from 53.9 in July. Estimates were for a reading of 53.7. Manufacturing PMI was unchanged at 52.4, against expectations of 52.2. Services PMI rose to 54.3 in August from 54.0 in July and was above estimates of that it would stay unchanged. A reading above 50 indicates expansion, while a value below [..]

Asian Session – Weak China PMI weighs on aussie and oil; dollar falls to 8-week low

Posted on August 21, 2015 at 7:33 am GMT

Stocks in Asia fell again on Friday after Chinese manufacturing survey showed activity contracting at the fastest pace since 2009. The Caixin/Markit Manufacturing flash PMI came in at 47.1 in August, below estimates that it would stay unchanged at 47.8. New orders, new export business and output prices all fell at a faster rate during the month, heightening fears over a deepening slowdown in China’s economy. The Shanghai SE Composite index rebounded after briefly falling below the 3,500 level. It [..]

Technical Analysis – EURUSD bullish after leaving cloud

Posted on August 21, 2015 at 7:25 am GMT

EURUSD had a sharp rally to a near 2-month high just shy of the key 1.1300 level on Friday. The pair peaked at 1.1294. Resistance is seen at the 200-day moving average currently around 1.1310. Technicals are looking bullish. Prices have risen above the 55-day moving average and above the daily Ichimoku cloud. The tenkan-sen has crossed above the kijun-sen line. The daily RSI is in bullish territory. If upside momentum continues, there is scope to target 1.1466. To the [..]

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