News / Page 214

Euro, bond yields rally as ECB keeps QE policy steady

Posted on June 3, 2015 at 2:26 pm GMT

The European Central Bank kept its policy rates unchanged as well as its pace of quantitative easing since the Eurozone economy was continuing its recovery and inflation was also picking up. The ECB upgraded its inflation forecast for 2015 to 0.3% from 0% back in March, mainly as the price of oil has picked up. Inflation rates for 2016 and 2017 are forecast to be 1.5% and 1.8% respectively. GDP growth was forecast to be 1.5% for 2015 and 1.9% [..]

Australian GDP growth outstrips forecasts as exports jump

Posted on June 3, 2015 at 10:30 am GMT

Australia’s GDP grew by 0.9% in the first quarter of this year compared to the last quarter of 2014, defying consensus estimates that it would grow by 0.7%. This gives it a year-on-year growth of 2.3%, one of the highest in the developed world. The stronger-than-expected growth comes as a surprise as the Reserve Bank of Australia had warned of downside risks from the collapse in commodity prices, as well as from a noticeable slowdown in China’s economy, which is [..]

Asian Session – Euro stronger ahead of ECB meeting and Greek talks; Aussie rises after strong GDP

Posted on June 3, 2015 at 7:30 am GMT

The euro held on to Tuesday’s gains this morning as it continued to benefit from stronger-than-expected flash CPI data. Eurozone inflation rose by 0.3% annually, against expectations of 0.2% in May’s flash estimate. This pushed up Eurozone bond yields, with German 10-year bund yields rising 13 bps to 0.664%, giving further boost to the euro. News that Greece’s creditors had agreed on a bailout offer to present to Greece also gave some positive momentum to the euro. European leaders have [..]

Technical Analysis – GBPUSD tests 50% Fibonacci

Posted on June 3, 2015 at 7:05 am GMT

GBPUSD rose for a second day on Wednesday to 1.5374 after bouncing off key support at 1.5182. This level is the 50% Fibonacci retracement level of the upleg from 1.4564 to 1.5813. The intraday bias is bullish based on technical indicators. The RSI is pointing back up. The market is still above the daily Ichimoku cloud, and this supports the upside bias. A move higher would target the 23.6% Fibonacci level at 1.5522, which would act as a resistance level. [..]

European Session – Euro rallies to 1.11 on Eurozone inflation and hopes of Greek deal

Posted on June 2, 2015 at 2:38 pm GMT

The main focus of currency markets on Tuesday was on Greece and Eurozone inflation which drove the euro up into the 1.11 handle. Eurozone inflation rose into positive territory for the first time since November, to print a reading of 0.3% in May following a flat reading in April. Core consumer prices – which exclude food and energy – climbed 0.9%, accelerating from 0.7% in April. Meanwhile, headlines regarding Greece lent some optimism to investors that a debt deal was [..]

Technical Analysis – EURJPY rallies to 4.5-month high; outlook still bullish

Posted on June 2, 2015 at 2:19 pm GMT

EURJPY rose to four- and half-month highs, reaching a peak of 138.86 before pulling back closer to around 138.00. Prices have been above the Ichimoku cloud since April 30 and while they’ve since remained in a range, today’s break above the 50% Fibonacci retracement level at 137.91, of the downleg from December’s 149.76 to April’s 126.08, signifies a shift in momentum. The RSI has hit 70 and the tenkan-sen and kijun-sen lines remain positively aligned indicating a strong bullish bias [..]

Eurozone flash CPI rises by more than expected in May

Posted on June 2, 2015 at 11:32 am GMT

Flash CPI figures out this morning for the Eurozone showed consumer prices rising by more than expected in the Euro area in May. Annual inflation in the Eurozone came in with a reading of 0.3% for May in the flash estimates. This compares with an annual rate of 0% in April. Consensus estimates in a Reuters poll were for a figure of 0.2%. Core CPI, excluding energy, food and alcohol & tobacco, also came in above estimates in May at [..]

RBA keeps rates unchanged but absence of easing bias boosts aussie

Posted on June 2, 2015 at 9:52 am GMT

The Reserve Bank of Australia kept its overnight cash rate unchanged at 2% at its June meeting today as expected. Having cut the cash rate by 0.25% in the previous month, the RBA is adopting a wait-and-see policy if further cuts would be needed as commodity prices remain weak and economic growth is below the long-term average. In his statement, RBA Governor Glenn Stevens said that although household spending is higher and exports are rising, business capital spending remains weak [..]

Asian session – Aussie rallies after RBA holds rates; dollar peaks above 125 yen

Posted on June 2, 2015 at 7:23 am GMT

The Reserve Bank of Australia gave the Australian dollar a boost, as it not only kept interest rates unchanged as expected but also retained its neutral bias towards future policy. There were some contradictory signals from RBA officials and weak data recently that made a shift of bias possible during this meeting. As the RBA held, the aussie jumped above 77 cents after briefly dipping below 76 US cents against the dollar before the central bank’s announcement. The euro was [..]

Technical Analysis – AUDUSD intraday upside momentum strong after RBA

Posted on June 2, 2015 at 7:16 am GMT

AUDUSD rallied to 0.7708 early on Tuesday after the RBA held rates unchanged. The immediate bias is to the upside since momentum is strong – RSI is above 50 on the hourly chart and prices are above the hourly Ichimoku cloud. On the daily chart, today’s move higher is still seen as a correction to the down trend from 0.8162 to 0.7597. The market is below the daily Ichimoku cloud and will likely find resistance from the lower cloud level [..]

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