News / Page 209

Pound jumps on strong earnings data and hawkish BoE minutes

Posted on June 17, 2015 at 10:25 am GMT

The unemployment rate in the UK was unchanged from the previous month in April at 5.5%, in line with estimates. The ILO based figure fell by 43,000 to 1.81 million in April, while the claimant count measure fell by 6,500 in May, giving a rate of 2.3%, slightly above estimates of 2.2%. Total employment in the UK rose by 114,000 to 31.1 million. What caught the markets off guard however, were the average earnings data, which showed acceleration in April. Average [..]

Asian Session – Markets nervous ahead of Fed meeting and worsening Greek crisis

Posted on June 17, 2015 at 7:46 am GMT

Asian shares started the session lower hitting three-month lows but managed to mostly reverse earlier losses with the exception of Japan. The Nikkei 225 index was down by 0.19% after disappointing trade figures showing exports rose by only 2.4% in May, against estimates that they would grow by 3%. Investors were generally wary with both the Fed meeting later today and the Greek crisis occupying the markets. There were no signs that the current impasse between Greece and its creditors [..]

Technical Analysis – GBPJPY remains bullish as rally continues

Posted on June 17, 2015 at 7:06 am GMT

GBPJPY continues its rally and rose for a fifth consecutive day to reach 193.30 early on Wednesday. The immediate bias remains to the upside as the tenkan-sen line is rising and is above the kijun-sen line. The RSI is above 50 and is not quite overbought yet so there is room for further upside. The outlook is bullish as long as support holds at 190.21 in case of prices falling back down. The rising Ichimoku cloud highlights the underlying bullish [..]

European Session – Dollar flat ahead of FOMC, euro weighed by Greece uncertainty and Eurogroup

Posted on June 16, 2015 at 2:40 pm GMT

Today market price action was quite choppy, mainly because of a risk off tone due to uncertainty over Greece and a lack of any concrete news. There were rumours of a delay in the IMF payment which were later denied. Meanwhile the Greek Finance Minister said that no new concessions will be made and no new reforms will be put forward to the Eurogroup meeting on Thursday. Aside from headlines on Greece, the only important data out of the Eurozone [..]

Technical Analysis – EURUSD volatile but lack of direction keeps it in range

Posted on June 16, 2015 at 2:34 pm GMT

EURUSD reversed earlier gains to a high of 1.1329 to drop to around 1.1260. The pair has been consolidating recently but immediate bias is to the downside as RSI is heading lower towards 50 and the stochastic oscillator is bearish with the %K line trending down below the %D line. There are bullish signals coming from the Ichimoku cloud, which suggest EURUSD has some momentum to continue on its upward path that began in mid-March. Prices are above the Ichimoku [..]

Rising transport costs push up UK inflation back into positive territory

Posted on June 16, 2015 at 12:22 pm GMT

After a brief flirtation with deflation in April, UK inflation edged back up to positive territory, with the CPI rate rising to 0.1% year-on-year in May. The figure was within estimates and up from -0.1% in April. Month-on-month, CPI rose by 0.2% as expected. A rebound in the price of fuel contributed to rising prices as they were higher by 1.9% on the month, with overall transport costs rising by 0.6% in May. But electricity and gas prices continued to [..]

Asian Session – Dollar down as market braces for Wednesday’s Fed meeting outcome

Posted on June 16, 2015 at 7:31 am GMT

The US dollar was losing ground Tuesday on what must have been position adjustment ahead of the all-important Federal Reserve policy statement tomorrow. The 2-day Fed meeting starts today. Furthermore, updated economic forecasts and Janet Yellen’s press conference will be key in helping the market get a better picture on when the first interest rate hike in nine years will come. Euro / dollar was trading around 1.1315 as the euro not only kept but added the previous day’s gains. [..]

Technical Analysis – Bearish outlook for AUDUSD

Posted on June 16, 2015 at 7:17 am GMT

AUDUSD has been capped by the 61.8% Fibonacci retracement level of the rise from 0.7532 to 0.8162. This level lies at 0.7772. Meanwhile, the market is below the daily Ichimoku cloud which gives a bearish outlook. The RSI is below 50 in bearish territory and this also highlights the downside bias. The tenkan-sen line is below the kijun-sen line which increases the possibility of a fall in prices. Targets to the downside are the 76.4% Fibonacci at 0.7666 and the [..]

European Session – Euro recovers losses, rises during Draghi testimony

Posted on June 15, 2015 at 2:54 pm GMT

The euro was surprisingly resilient and recovered some losses made after news that a crucial last ditch effort meeting on Sunday between Greece and its creditors failed. The single currency attempted to close the gap made at the start of the Asian session when it opened lower against the dollar at 1.1210 versus Friday’s close of 1.1263. The high reached in the European session was 1.1259. Focus now shifts to Thursday’s Eurogroup meeting. Greece has four days to decide on [..]

Dollar unmoved from weak US industrial production data

Posted on June 15, 2015 at 2:49 pm GMT

Weaker-than-expected industrial production figures for the US had little impact on the dollar as the markets are more focused on Wednesday’s rate decision by the Fed and the escalating stand-off between Greece and its creditors. Nevertheless, as the Fed moves into a period of data dependency for the timing of its expected rate rise, it will be watching closely all indicators to assess the speed at which economic growth rebounds from the first quarter weakness. Industrial production in May declined [..]

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