News / Page 208

European Session – Euro regains 1.14 handle as markets await Eurogroup, dollar pressured by soft US CPI, Fed

Posted on June 18, 2015 at 2:15 pm GMT

All eyes are on the Eurogroup meeting today now that the FOMC meeting is out of the way. However, some key economic data from the UK and US briefly stole investors’ attention. May retail sales for the UK rose above expectations, by 0.2% m/m versus 0% forecast. Retail sales excluding auto fuel came in at 4.4%, above expectations of 4.3%. Today’s data coupled with Wednesday’s strong UK employment data helped lift the pound higher. In addition, a broadly softer US [..]

US inflation rises but below forecast; weekly jobless claims continue to fall

Posted on June 18, 2015 at 2:05 pm GMT

Inflation in the US appeared to be picking up in May as the annual CPI rate rose to 0% from -0.2% in April, but the rise was lower than estimates of 0.1%. The month-on-month change showed signs of accelerating prices as it rose by 0.4%, though this was still below forecast of 0.5%. Core CPI, which excludes food and energy, also came in weaker-than-expected at 1.7% annually, against estimates of 1.8%. The month-on-month increase was 0.1%, the slowest pace since [..]

Technical Analysis – EURJPY outlook strongly bullish

Posted on June 18, 2015 at 12:34 pm GMT

EURJPY broke through the 140 handle again but was unable to hold on to it. There is resistance not too far away at 140.71, which is the 61.8% of the Fibonacci retracement level from the December 2014 high of 149.76 to the April 2015 low of 126.08. This may prove to be a key resistance level if EURJPY is unable to confidently break above it as previous attempts to close above this level failed. A loss in momentum could see [..]

SNB keeps policy unchanged despite weak growth

Posted on June 18, 2015 at 10:04 am GMT

The Swiss National Bank kept its deposit rate at a record low of -0.75% on Thursday, in line with market expectations. The central bank also kept the three month Libor rate between -1.25% and -0.25%. The SNB has kept the deposit rate at record lows with the stated aim of making investments in the Swiss currency less attractive and thus gradually weakening the franc. In January the Swiss central bank removed the exchange rate ceiling between the Swiss franc and the [..]

Kiwi drops 1.5% against dollar on weak Q1 GDP data

Posted on June 18, 2015 at 9:21 am GMT

The New Zealand dollar took a tumble after weaker-than-expected GDP figures for the first quarter of 2015 shocked the markets. New Zealand GDP grew by just 0.2% in the first quarter from the previous quarter and was up 2.6% from the same quarter in 2014. Consensus estimates were for GDP to expand by 0.6% on the quarter, which would have been a milder slowdown from the 0.8% growth seen in the last quarter of 2014. This was the weakest growth [..]

Asian Session – Dollar falls on lower growth outlook and slower pace of rate increases

Posted on June 18, 2015 at 7:22 am GMT

The dollar fell on Wednesday after the publication of the FOMC statement and the Fed’s economic projections, which showed a reduction in the growth outlook for 2015-2017. The lower growth forecasts signalled a slower pace of increase in the interest rates than anticipated. However, markets were somewhat disappointed that the FOMC statement did not provide a clearer timeline of when interest rates are likely to go up. The statement said that economic growth has been expanding moderately but the Fed [..]

Technical Analysis – GBPUSD bullish outlook with scope to target 1.6000

Posted on June 18, 2015 at 7:04 am GMT

GBPUSD surged on Wednesday to a high of 1.5846, surpassing the May 14 high of 1.5813. The outlook is looking very bullish after the tenkan-sen crossed above the kijun-sen line. RSI is also indicating the possibility of further upside momentum as it is in bullish territory above 50 and not quite in overbought conditions yet. GBPUSD has the potential to reach 1.6000 but in order to achieve this it would have to get over the 50% Fibonacci retracement level of [..]

Fed on track to raise rates but cut in growth outlook signals slower rise

Posted on June 17, 2015 at 8:17 pm GMT

The Federal Reserve’s Federal Open Market Committee concluded its two-day meeting today, keeping policy unchanged as expected. Markets have been keenly waiting for the details of the FOMC statement as slower than expected economic growth since the start of the year has pushed back initial expectations that the Fed would begin tightening monetary policy as early as June. This has led to increased speculation over the timing and the pace of any interest rate rise with the Fed acknowledging that [..]

European Session – Sterling outperforms after strong UK jobs report, all eyes on FOMC

Posted on June 17, 2015 at 2:24 pm GMT

Sterling continued to outperform today after it rallied on a UK employment report that showed wage growth climbed to 6-year highs in April. Average weekly earnings growth (excluding bonuses) beat expectations and jumped 2.7% y/y versus 2.5% forecast. The strong data will likely bring forward the expectations of the first rate hike by the Bank of England. Also released out of the UK were the Bank of England minutes of the latest policy meeting which leaned towards a more hawkish [..]

Gold and silver continue to retreat from record highs

Posted on June 17, 2015 at 1:18 pm GMT

Gold prices not likely to recover to 2011 levels anytime soon Gold price has depreciated significantly from its all-time high of $1,920.80 per ounce it reached in September 2011 to around $1,180 per ounce currently. The main catalyst for the fall has been the US Fed’s tapering of its quantitative easing program, which is what drove prices to their record high in the first place. Gold price tends to rally when central banks expand their monetary base. But recently announced [..]

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