News / Page 190

Pound dragged lower by soft UK jobs and earnings data

Posted on August 12, 2015 at 10:04 am GMT

UK unemployment showed signs of cooling off in June as the ILO measure of unemployment rose by 25,000 to 1.85 million in the three months to June. The unemployment rate stayed unchanged at 5.6%. Total employment fell by 63,000 over the quarter to 31.03 million, but was still higher than a year ago by 354,000 and the employment rate fell slightly to 73.4%. An unexpected drop in the number of people claiming unemployment benefits, which is one month ahead of [..]

Asian Session – Yuan slides again while euro marches higher

Posted on August 12, 2015 at 7:38 am GMT

The Chinese yuan fell again for a second day on Wednesday as the People’s Bank of China lowered the midpoint by a further 1.6% to 6.3306 per dollar. The yuan dropped to a 4-year low as it depreciated by 1.8% from its midpoint to fall to 6.4458 per dollar in late Asian trading. Emerging market currencies took a hit from the yuan’s slide as the Malaysian ringgit and the Indonesian rupiah fell to 17-year lows, with the Korean won and [..]

Technical Analysis – USDJPY bullish above daily Ichimoku cloud

Posted on August 12, 2015 at 6:58 am GMT

USDJPY remains above the tenkan-sen line and above the daily Ichimoku cloud. These provide bullish signals. The recent upside momentum has stalled for now but there is scope to target the June 5 high of 125.84. RSI is still above 50 but is trending sideways, which also highlights this pause in the uptrend. Immediate support is seen at 124.00. However a break below this level would lead to a fall to the cloud. The top of the cloud should provide [..]

European Session – Euro holds above 1.10 as Greece and creditors reach deal on third bailout

Posted on August 11, 2015 at 2:25 pm GMT

The euro moved higher during the course of the day as Greece and its creditors announced that they had agreed on the new bailout terms. The Greek Finance Ministry said that only ‘two or three small issues’ remain to be resolved and the final size of the bailout would amount to €85 billion over three years, of which €10 billion would be used to recapitalize Greek banks. Some of the main sticking points such as the primary surplus targets appear [..]

China devalues yuan on faltering economic growth

Posted on August 11, 2015 at 11:59 am GMT

China devalued its currency, the yuan, on Tuesday after recent economic data pointed to a deepening slowdown in the world’s second largest economy. The People’s Bank of China devalued the yuan by 1.9%, lowering the midpoint from 6.2298 per dollar to 6.1162 per dollar. China’s currency is not allowed to fluctuate more than 2% a day from the midpoint but investors were pleased that the midpoint will now be set based on market makers’ quotes and the previous day’s closing [..]

Technical Analysis – US Oil looks set to challenge 7-year low of $42

Posted on August 11, 2015 at 8:30 am GMT

While the price of oil had a particularly positive second quarter this year, its failure to clear the 60-62 dollars per barrel area led to a vicious reversal from late June to early August, which could lead to a retest of the 7-year low below $43. The price of oil is particularly significant for commodity-sensitive currencies and especially the currencies of major oil producers such as Norway, Russia, Canada and Mexico. Price action has clearly been bearish as the Tenkan-sen [..]

Asian Session – Aussie down over 1% on yuan’s devaluation but dollar edges higher

Posted on August 11, 2015 at 7:48 am GMT

China’s central bank surprised the markets by devaluing the yuan on Tuesday as the Chinese government seeks to boost the country’s exports. The yuan, which can only fluctuate 2% from its fixed midpoint, was devalued by 1.9% and the midpoint lowered to 6.2288 per dollar from 6.1162 per dollar. The People’s Bank of China also changed the way it sets the midpoint, which will now be based on market makers’ quotes and the previous day’s closing price, making the currency [..]

European Session – Fed’s Fischer comments sends dollar lower; Brent crude bounces back above $49

Posted on August 10, 2015 at 2:34 pm GMT

With very little to detract investors on the data front, comments from Fed officials Stanley Fischer and Dennis Lockhart were the main currency movers on Monday. The dollar has been fluctuating since mid-European session as it rose ahead of Fischer’s interview but fell on remarks that inflation should move closer to normal levels before interest rates start to rise. It later headed higher and dropped back again as Atlanta Fed President Dennis Lockhart started his speech. Fed governor Stanley Fischer, [..]

Technical Analysis – AUDUSD unable to hold above 0.74; outlook still bearish

Posted on August 10, 2015 at 12:44 pm GMT

AUDUSD reversed much of Friday’s gains on Monday as it dropped back below 0.74. The near term indicators point to some upward momentum as RSI is just below 50 and the stochastics are still rising. The nearest resistance is the July 21 and August 7 close of 0.7417. A break above this level is needed to strengthen the upside momentum. This would put prices within closer range of the 50-day moving average at 0.7532, which the pair needs to target [..]

Technical Analysis – GBPUSD Daily: Rangebound between 1.50 and 1.60

Posted on August 10, 2015 at 8:47 am GMT

Cable has been sort of directionless for a substantial period of time – more or less since it stabilized after its post-financial crisis crash from a high of 2.11 to a low 1.35 in 2008-2009 and traded between 1.40 and 1.70 for the past 5 years plus. The pound rallied from around 1.45 to nearly 1.60 between mid-April and mid-June but backed down towards the middle of the 1.50-1.60 range since then. On the downside, the 1.5330 3 ½ -month [..]

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