News / Page 212

Peso, Rand and Lira out of favour as US rate rise looms

Posted on June 9, 2015 at 11:45 am GMT

South African Rand expected to weaken further in 2015 The South African rand has been steadily weakening against the US dollar since the second half of 2011 as economic growth has fallen below the African average after the 2008 recession. The rand has fallen to around 12.5 rand per dollar in June, its weakest level this year. Despite a rebound in mining output in the first quarter of 2015, the South African economy has been plagued by power shortages, which [..]

Asian Session – Euro off highs as dollar moves to recover losses

Posted on June 9, 2015 at 7:30 am GMT

The dollar dropped marginally in early Asian trading following Monday’s steep falls against major currencies. Reports that President Obama was quoted as saying that the strong dollar was “a problem” at the G7 summit in Germany hurt the greenback, although this was denied by the White House. Asian shares headed lower as growing expectations of a September rate rise in the US following Friday’s strong payroll data hit market sentiment. Hopes of additional stimulus measures by Chinese authorities were raised [..]

Technical Analysis – USDTRY maintains bullish outlook

Posted on June 9, 2015 at 7:26 am GMT

USDTRY gapped higher on Monday following Turkey’s election results. The pair surged to a record high at 2.8086 after breaking what was resistance at 2.7426 (April 24 high). This level is now acting as support on Tuesday. A break back below would bring the bias back to neutral and into the range that the USDTRY was trading in (between 2.5598 and 2.7426. RSI rose sharply and approached overbought levels at 70 but there is still room for more upside momentum. [..]

Technical Analysis – EURGBP in bullish mode but outlook is neutral

Posted on June 8, 2015 at 2:45 pm GMT

EURGBP reversed two days of declines to jump to 0.7337 today. Prices remain just above the Ichimoku cloud as well as the 50- and 100-day moving averages, indicating a bullish bias in the near term. But the current uptrend has not been strong enough to lift the tenkan-sen line above the kijun-sen line, suggesting that EURGBP is likely to stay within its current range in the medium term. RSI remains above 50 and is trending upwards so a renewed momentum [..]

European Session – Euro rises to 1.12, dollar fades post-NFP gains

Posted on June 8, 2015 at 2:41 pm GMT

The euro moved higher against the dollar during the European session, based on several developments. There was a first leg up to 1.1177 early in the session on better-than-expected German industrial production data and then followed by comments from US President Obama that he did not like the strong dollar. His remarks were later denied though but this did not stop the euro from moving another leg higher later in the session to 1.1224. Rising bund yields were supportive as [..]

Russian rouble and Norwegian krone to track oil’s path

Posted on June 8, 2015 at 1:10 pm GMT

Rouble recovers from close to collapse but geopolitical tensions still a threat The rouble has made a remarkable recovery in 2015 after slumping to around 80 roubles per dollar in late 2014 from around 35 roubles per dollar before the crisis. It has managed to overcome the double shock of plummeting oil prices and geopolitical uncertainty around the Ukraine conflict and the annexation of Crimea. The Russian central bank was forced to raise interest rates by 6.5% to 17% in [..]

Asian session: Dollar consolidates Friday’s gains; Japan’s GDP helps yen

Posted on June 8, 2015 at 7:28 am GMT

The US dollar continued to trade well-bid and mostly kept the substantial gains it made on Friday. The US economy created a surprising 280,000 thousand new jobs during May; much more than economists’ forecasts of 225,000 net new positions. The unemployment rate ticked up to 5.5% from 5.4% the previous month, but this was because of new job-seekers entering the labor force. Furthermore, average hourly earnings also surprised on the upside by coming in at 0.3% instead of 0.2% expected. [..]

Technical Analysis – Gold bearish below Ichimoku cloud

Posted on June 8, 2015 at 7:24 am GMT

Gold prices pushed lower on Friday after the strong US non-farm payrolls report, touching a low of 1162.69. The underlying market bias remains bearish as long as prices trade below the 200-day moving average and below the key psychological level at 1200.00 and also below the Ichimoku cloud. RSI is holding under 50 and the trend is falling, which supports the downside momentum. The tenkan-sen line is also capping prices. The market has scope to retest the March 17 low [..]

Dollar powers ahead after strong May payrolls data

Posted on June 5, 2015 at 1:56 pm GMT

US non-farm payrolls increased by 280,000 in May, following a downwardly revised 221,000 increase in April. This was the highest figure since December and comes above estimates of 226,000. The unemployment rate edged up slightly though to 5.5% as the number of people entering the workforce and looking for jobs increased. This compares with estimates that it would stay unchanged at 5.4%. Average hourly earnings also picked up pace increasing by 0.3% in May from the previous month, giving an [..]

European Session – Dollar spikes to new 12-year high against yen after strong non farm payrolls

Posted on June 5, 2015 at 1:14 pm GMT

Most major currencies weakened steadily agaisnt the dollar through the European session ahead of the US employment release. The non-farm payrolls report showed 280,000 jobs were added to the US economy in May which was better-than-expected and the highest so far this year. Most forecasts were for a gain for 225,000 jobs from April’s 223,000. The unemployment rate ticked up slightly to 5.5% from a prior 5.4%. It was expected to stay the same but due to more Americans looking [..]

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