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European Session – Euro weighed by Greece concerns as Eurogroup meeting takes place

Posted on May 11, 2015 at 2:07 pm GMT

The market’s attention shifted back to Greece today after a temporary pause due to the UK elections and US nonfarm payrolls last week taking the spotlight. The Eurogroup meeting takes place in Brussels today, with Greece dominating the agenda as the cash-strapped country continues talks with its creditors in order to unlock the next portion of its bailout funds worth 7.2 billion euros. A decisive agreement is not expected to be reached today as too many issues remain unresolved but [..]

China cuts rates by 25bps to stave off slowdown

Posted on May 11, 2015 at 12:07 pm GMT

China’s central bank on Sunday cut its benchmark rates for the third time in six months as growing evidence points to a deepening slowdown of the Chinese economy. The People’s Bank of China (PBOC) cut its benchmark one-year lending rate by 25 basis points to 5.1%, and its benchmark deposit rate also by 25 basis points to 2.25%. The Bank also lifted its deposit-rate ceiling to 150% of the benchmark from 130%. Shares jumped on the news with the main [..]

Asian Session – Euro drops ahead of Eurogroup on Greece; kiwi lower on rate cut expectations

Posted on May 11, 2015 at 7:15 am GMT

The euro was under pressure during Monday’s Asian trading, ahead of a key Eurogroup meeting of Eurozone finance ministers that will evaluate the progress on negotiations between Greece and its lenders. Expectations for today’s meeting are fairly low since no deal is expected but there is also concern whether Greece can successfully meet its debt repayment deadlines in the coming days and weeks. The euro dropped to as low as 1.1131 but managed to recover to around 1.1170 compared to [..]

Technical Analysis – GBPUSD rally capped by 200-day moving average

Posted on May 11, 2015 at 7:09 am GMT

GBPUSD rally on Friday was capped by the 200-day moving average. After hitting a high of 1.5521 the pair eased lower in early Monday trading. However the intra-day bias remains to the upside as the RSI is in bullish territory above 50 and the tenkan-sen line is rising. Also prices are above the daily Ichimoku cloud. Immediate resistance comes in at 1.5551, the February 26 high. This is a critical level, which if broken would shift the long term outlook [..]

European Session – Sterling rally holds; US adds 223k jobs in April

Posted on May 8, 2015 at 2:22 pm GMT

Sterling dominated the European session as the surprise win for the Conservatives in the UK elections took centre stage. Markets were clearly pleased with the outright majority win of the Conservatives, as the pound jumped by around 1% against the dollar and by around 1.5% against the euro and the yen. UK stocks were also boosted with the main FTSE-100 share index up by over 2% in afternoon trade. Negative UK trade data did little to dent the pound’s strength, [..]

Week Ahead – UK and Eurozone data to be in focus on backdrop of UK elections and Greek talks

Posted on May 8, 2015 at 11:29 am GMT

The week ahead is set to be another busy one as a host of economic data is released while the UK election outcome and Greek debt negotiations will also likely grab attention at the start of the week. The pound will be in focus again as markets will await for news of the new Conservative cabinet taking shape and whether it will involve any coalition partners. Some sort of coalition agreement, whether a loose deal or a formal pact is [..]

Pound soars as early count points to victory for the Conservatives

Posted on May 8, 2015 at 8:15 am GMT

The pound rose sharply in Asian trading after the first exit polls revealed a strong surge for the Conservatives. Various polls throughout the election campaign had the Conservatives running neck and neck with the Labour party. But the Conservatives are now clearly in the lead as the largest party in Westminster and appear to be in with a strong chance of achieving a small majority. Sterling jumped by around 1% against both the dollar and the euro soon after the [..]

Asian Session – Sterling rallies as Tories win UK election

Posted on May 8, 2015 at 7:22 am GMT

The pound was the main winner of Friday’s Asian Session, as it rallied following the announcement of exit polls that showed Britain’s ruling conservative party winning the UK elections but probably needing the help of a junior partner to form a stable majority government. This was a positive surprise for UK assets, as many analysts were fearful of a more balanced outcome that would result in a deadlock and difficulties in forming a new government. The conservatives are also traditionally [..]

Technical Analysis – EURGBP shifts to the downside

Posted on May 8, 2015 at 6:57 am GMT

EUR/GBP fell sharply on Friday after the UK election exit polls pointed to a victory for the Conservative Party. The downside bias strengthened after prices fell back into the Ichimoku cloud. This suggests the market has topped at the May 7th high of 0.7482 in the near-term. Prices have also fallen below the tenkan-sen and kijun-sen lines and RSI dipped just below the 50 line – all these are indicating an intra-day bearish bias. A break of support at 0.7116 [..]

European Session – European shares fall as rising bond yields spooks markets; Dollar firms on Weekly Jobless Claims

Posted on May 7, 2015 at 1:59 pm GMT

European stock markets were sharply down on Thursday, though later recovering somewhat, as they reacted to rising government bond yields, which continued their upward path. Bond prices came under pressure after Spain and France sold bonds of up to 4.5 billion euros and 8.5 billion euros respectively. The yields spike was enough to prompt Poland to cancel its own bond sale planned for today. Ten-year German bund yields, which act as a benchmark for the Eurozone, were up 0.13% to [..]

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