News / Page 193

Asian Session – Dollar and euro steady; weak China PMI weighs on Asian markets

Posted on August 3, 2015 at 8:13 am GMT

The dollar was steady in Monday’s Asian session after seeing some volatility on Friday. Weaker-than-expected employment cost index caused a dollar sell-off on Friday but the greenback managed to stage a late US session rally to recover most of its losses. The trigger for the dollar’s reversal was comments from St. Louis Fed President James Bullard who was quoted as saying that the US economy was “in good shape”. The dollar was back above the 124 handle against the yen, [..]

European Session – Dollar plummets on weak labor costs, pushing euro and gold higher

Posted on July 31, 2015 at 2:16 pm GMT

The euro accelerated its gains against the dollar on Friday after weaker-than-expected US labor costs caused a sharp sell-off of the dollar. The employment cost index in the US fell to 0.2% in the second quarter from 0.7% in the first quarter. This was well short of estimates of 0.6%. The euro briefly broke through the 1.11 handle before dropping back slightly to 1.1084 in late European session. It was also higher against the pound at 0.7086, while against the [..]

Week Ahead – Focus on US jobs and central banks as BoE, RBA and BoJ meet

Posted on July 31, 2015 at 12:36 pm GMT

With the Fed’s July policy meeting out of the way, focus will turn next week on the Bank of England, Bank of Japan and the Reserve Bank of Australia, which hold their scheduled monetary policy meetings. US employment numbers will also be closely eyed in addition to personal spending data. Starting the week, will be the Markit final manufacturing PMI for China, Japan and the Eurozone for July, as well as the main release for the UK. China’s final PMI [..]

Technical Analysis – EURGBP holds above 0.70 but outlook is bearish

Posted on July 31, 2015 at 8:53 am GMT

EURGBP moved higher on Friday after three straight sessions of losses but it was still not too far from the 7.5-year low of 0.6936 it touched on July 17. With the stochastics heading down towards 20 and RSI below 50, the near term bias is bearish. Any upside momentum being signalled from the rising RSI is weak. The medium term indicators are all looking bearish as prices remain below the moving averages and the Ichimoku cloud. The tenkan-sen line has [..]

Asian Session – Dollar mixed post Fed and GDP but euro moves higher

Posted on July 31, 2015 at 7:58 am GMT

The dollar rally fizzled out during Thursday’s US session, after making strong gains from the FOMC statement and yesterday’s GDP data. Expectations for a September rate rise remain strong and employment and inflation data until the Fed’s next meeting will be closely watched by the markets. Second quarter US growth disappointed slightly as the initial reading of 2.3% was below consensus estimates of 2.6%. But most analysts think that the tightening labor market will spur the US central bank to [..]

European Session – Eurozone data fails to lift euro; dollar rises despite unimpressive Q2 GDP

Posted on July 30, 2015 at 2:56 pm GMT

The euro failed to be inspired from positive Eurozone data as all attention was on US GDP estimates for the second quarter. US GDP rose by an annualized rate of 2.3% in the second quarter, falling slightly short of forecasts of 2.6%. The modest figure is an improvement on the first quarter’s upwardly revised 0.6% and supports the case that the US economy is growing at a moderate pace. The dollar surged after the data as markets view this as [..]

US Q2 GDP disappoints but Fed’s preferred inflation measure beats estimates

Posted on July 30, 2015 at 1:59 pm GMT

The US economy expanded at an annualized rate of 2.3% in the second quarter of the quarter, below estimates that it would grow by 2.6%. Although the shortfall is not significant enough to deter the Fed from raising interest rates, it does highlight the continued modest pace at which the US economy has been expanding at since the end of the financial crisis. Revisions made to previous years’ growth show the US economy expanded at an average rate of 2.1% [..]

Technical Analysis – AUDJPY looking bearish after brief rally loses steam

Posted on July 30, 2015 at 8:47 am GMT

AUDJPY was unable to sustain the rally from July 28 after finding resistance at the tenkan-sen line at around 90.78. The intra-day bias is on the upside with the stochastics still rising but RSI is in bearish territory, though it’s pointing up. In the medium term, the outlook for the pair is looking bearish as prices are below the Ichimoku cloud and the moving averages. AUDJPY would need to cross above the kijun-sen line at 92.50 if it’s going to [..]

Asian session – FOMC statement delivers no surprises but dollar still up while euro falters

Posted on July 30, 2015 at 7:58 am GMT

The dollar extended its gains from Wednesday’s US session in today’s Asian trading as the Fed’s positive assessment of the US economy suggested that a September rate rise remains a strong possibility despite the lack of clear signals. In its statement, the FOMC said that the labor market is ‘nearly balanced’ but that inflation continues to run below the target rate. This could indicate that the Fed would be more comfortable if inflation was closer to its 2% objective before [..]

Fed upbeat on jobs but September move uncertain due to low inflation

Posted on July 29, 2015 at 8:03 pm GMT

The Federal Open Market Committee (FOMC) concluded its two-day meeting on Wednesday by keeping its policy unchanged. Markets were not expecting any changes but were hoping the Fed would provide stronger signals on the possible timing of an interest rate increase. With July being the last meeting before September, which is widely tipped as the most likely date for a rate move, investors were left disappointed on the lack of clear signals by the FOMC. While the Committee sounded more [..]

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