News / Page 252

European Session – Euro supported by strong German ZEW but focus remains on ECB

Posted on January 20, 2015 at 2:44 pm GMT

The euro moved very little against the dollar today as markets are focused on Thursday’s European Central Bank policy meeting and a Greek election on Sunday, both being major risk events for the single currency. The ECB is widely expected to launch more QE (quantitative easing). However, what makes markets nervous is the uncertainty of the amount of QE. More aggressive measures of above 600 billion euros could see the euro move down another leg while a number below 500 [..]

Forex News – Chinese growth slows down but with a silver lining

Posted on January 20, 2015 at 2:42 pm GMT

News that Chinese growth for the 4th quarter was at 7.3% year-on-year was a slight beat on expectations the economy would grow by 7.2%. For the year as a whole, China expanded by 7.4% versus a growth target of around 7.5% and the previous year’s 7.7% rate. Despite the relatively high figure in absolute terms, this rate is the slowest for China in the past 24 years and it is looking to fall lower still in 2015. Growth should be [..]

Asian Session – Chinese growth helps dollar, pushes yen lower

Posted on January 20, 2015 at 8:41 am GMT

News that Chinese economic growth was slightly faster-than-anticipated helped risk assets despite a cut in the IMF’s world economic outlook forecasts. 4th quarter growth came in at 7.3% year-on-year for the world’s second largest economy, as the growth rate during 2014 fell to 7.4% from 7.7% during the previous year. Although such a growth rate is the envy of most countries in the world, it was the slowest growth rate for 24 years for China. The beat in Chinese growth [..]

Technical Analysis – AUDUSD back below 0.8200, cloud weighs

Posted on January 20, 2015 at 8:23 am GMT

AUDUSD has ended its retracement from 4-year lows. After peaking at 0.8294 last Thursday, the pair has been making lower highs to fall back below the key 0.8200 level. The market is below the daily Ichimoku cloud which is falling and highlights the underlying bearish trend. The kijun-sen line is just crossing below the tankan-sen and the RSI has dipped back below the 50 line back into bearish territory. Strong support is seen at 0.8031, the 4-year low hit on [..]

European Session – Euro off 11-year lows as markets await ECB

Posted on January 19, 2015 at 3:31 pm GMT

Major currency pairs made only slight moves today heading into risk-filled events this week so investors are nervous. The main focus will be on Europe, particularly on the European Central Bank meeting on Thursday, followed by the elections in Greece on the weekend. Meanwhile, markets are still reeling from the shock of the SNB move last week. Also the US public holiday today (for Martin Luther King Day) has kept liquidity thin. The euro moved off an 11-year low of [..]

Forex News – ECB meeting preview: a QE program more complex than most

Posted on January 19, 2015 at 3:06 pm GMT

The most important event of the coming days will be the meeting of the European Central Bank on January 22 in Frankfurt. During this meeting, the unveiling of further stimulus to help the Eurozone economy is expected. Specifically, the ECB is expected to announce a quantitative easing program, which will involve the purchase of government bonds. This sounds straightforward enough as such programs have been used repeatedly in recent years in countries such as the United States, the United Kingdom [..]

Asian Session – Euro recovers from 11-year low ahead of crucial week

Posted on January 19, 2015 at 8:22 am GMT

The euro managed to recover from a fresh 11-year low registered on Friday ahead of the key risk events of the European Central Bank meeting on Thursday and the Greek snap elections on Sunday. The euro was buying 1.1570 dollars at the end of Asian trading, having fetched as little as 1.1460 on Friday. The market is expecting the outcome of the European Central Bank meeting and particularly whether the ECB will do QE, what bonds it will buy exactly, [..]

Technical Analysis – EURJPY bearish below cloud and 200 dma

Posted on January 19, 2015 at 8:17 am GMT

EURJPY continues to extend lower and remains bearish below the daily Ichimoku cloud. The market is also below the 200-day moving average while the tenkan-sen and kijun-sen lines are negative aligned and pointing downwards – all these factors are reinforcing the underlying bearish momentum. There is scope is for further losses to 134.13- the October 2014 low. Reaching this point would mean the market would retrace the entire move made from 134.13 to 149.76. To the upside 140.00 is a [..]

European Session – Euro continues to drop to fresh lows vs the dollar, franc still volatile

Posted on January 16, 2015 at 3:29 pm GMT

The euro fell further to register fresh 11-year lows versus the US dollar, trading as low as 1.1512. Record low bond yields in the Eurozone took away support from the euro, while there were jitters with respect to the situation in Greece when two Greek banks asked for possible emergency liquidity assistance (ELA) ahead of elections next week. The euro was fighting to hold on to the 1 Swiss franc level, as euro / franc dipped below parity to 0.9850. [..]

Forex News – Week Ahead: ECB looms large; UK employment and Eurozone Markit to be watched also

Posted on January 16, 2015 at 2:23 pm GMT

A crucial ECB meeting in Frankfurt, Markit Eurozone flash PMIs, UK employment and retail sales reports as well as Chinese growth and Japanese trade balance will likely prove to be the highlights of the coming week. Given the volatility unleashed by the Swiss National Bank, currency markets will likely remain volatile given such key risk events – particularly the euro. As already stated, the coming week will feature the all-important ECB meeting on Thursday, January 22. It will be the [..]

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