News / Page 228

Worries over Greek default intensify as Eurogroup agreement still not in sight

Posted on April 21, 2015 at 10:28 am GMT

Greece has been the main focus at the start of the week and is likely to dominate it for the remainder of the week as the Eurogroup meeting approaches on Friday and markets will be closely monitoring how the negotiations progress.Friday’s meeting of Eurozone finance ministers in Riga is aimed at reaching an agreement on Greece’s proposals for economic reforms needed to secure the final payments of its 2012 bailout program. Worries about a possible default were heightened yesterday after [..]

Asian Session – Dollar strengthens against most majors; Euro weighed down on Greek concerns

Posted on April 21, 2015 at 7:30 am GMT

The dollar continued to make steady gains overnight against most major currencies with the dollar index up by around 0.20% in late Asian trade to 98.10. The euro dropped below 1.07 dollars in early European trade. Weighing on the euro were worries that Greece could default on its debts after news emerged that the Greek government has asked public bodies in the country to transfer their cash reserves to cover its financing needs. The European Central Bank’s asset purchase program [..]

Technical Analysis – EURCHF giving bearish signals

Posted on April 21, 2015 at 6:43 am GMT

EURCHF extended down to its lowest level since January 29 to reach a low of 1.0232 on Monday. Prices stopped just above the 50% Fibonacci retracement level of the upleg from 0.9649 to 1.0810. The overall outlook is bearish as the RSI is falling and is in bearish territory below 50. The tenkan-sen and kijun-sen lines are falling and these are bearish signals. There has been a sequence of lower highs and lower lows since February 20. A break below [..]

European Session – Euro, pound give back gains; dollar shorts take profits

Posted on April 20, 2015 at 2:18 pm GMT

The euro and the pound plummeted today against the dollar, during a session that saw little in the way of economic data reports. The euro fell to as low as 1.0711 after trading as high as 1.0844 on Friday and returned most of those gains on apparently little economic news. Anxiety about Greece’s continued membership of the Eurozone could have been one negative factor weighing on the euro as days pass without real progress on negotiations regarding the reforms the [..]

China’s central bank cuts RRR by 1% in hope of avoiding deep slowdown

Posted on April 20, 2015 at 9:52 am GMT

On Sunday, China’s central bank cut the cash reserve ratio that banks are required to hold as reserves in an attempt to encourage bank lending and stimulate the slowing economy. The People’s Bank of China cut the reserve requirement ratio (RRR) for all banks by 100 basis points to 18.5%, which comes into effect on April 20. This was the steepest reduction in the RRR since the height of the global financial crisis in 2008 and shows that the authorities [..]

Asian Session – Chinese Reserve Requirement cut boosts aussie; dollar under pressure

Posted on April 20, 2015 at 8:15 am GMT

The latest move by the Chinese authorities to cut the banks’ Required Reserve Ratio (RRR) was welcomed by stocks and metals – particularly boosting the Australian dollar in foreign exchange markets. The aussie rose to as high as 0.7841 against the US dollar as the latest stimulus shows the determination of the authorities to help the economy. The aussie backed down to 0.7815 afterwards. The People’s Bank of China cut the RRR from 19.5% to 18.5%. The move also helped [..]

Technical Analysis –AUDUSD consolidates, could downtrend resume?

Posted on April 20, 2015 at 5:34 am GMT

The near term bias for AUDUSD is neutral as the pair has appeared to have bottomed at 0.7532 following a decline from the September 2014 high of 0.9400. Prices rose to a high of 0.7841 but the current rebound could be seen as a short term correction before the downtrend resumes as the outlook remains bearish as can be seen by the Ichimoku cloud which is falling. Also the 200-day moving is falling and this is a bearish signal. Prices [..]

European Session – Eurozone and US inflation data show upwards shift in price trend

Posted on April 17, 2015 at 2:56 pm GMT

Eurozone inflation data out today helped allay fears of Eurozone economies being trapped in a deflationary cycle as the Eurozone consumer price index for March ticked up to -0.1% year-on-year from -0.3% in February, in line with forecasts. Core inflation, which excludes food and energy, was also higher at 1.2%, though this was slightly below expectations of 1.3%. Markets were reassured however from the month-on-month figures that showed consumer prices up 1.1% from the previous month, and breaking the trend [..]

Week Ahead – Eurozone recovery in focus but Grexit fears remain ahead of Eurogroup meeting

Posted on April 17, 2015 at 12:11 pm GMT

Next week will see a number of key indicators for Eurozone countries as manufacturing and services PMI data are released for France, Germany and the Eurozone, as well as German IFO Business Climate and ZEW Economic Sentiment indices. Markets will be paying close attention to these figures for further evidence of the strengthening recovery in Eurozone economies, which will be coming against the backdrop of the worsening situation in the debt negotiations for Greece. The German ZEW Economic Sentiment indicator, [..]

Asian Session – Dollar on the ropes as weak data seen pushing out rate hike

Posted on April 17, 2015 at 7:48 am GMT

The US dollar dropped more against key majors such as the euro, the yen and the Australian dollar, as the case against a June rate hike by the Federal Reserve grew. Data that was on the weak side concerning unemployment claims, housing starts and building permits disappointed dollar bulls the previous day. Furthermore, Fed Governor Dennis Lockhart said that recent data made a June rate hike less likely. The Fed Vice Chair Stanley Fischer on the other hand tried to [..]

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