News / Page 269

European Session – Sterling plunges on dovish inflation report

Posted on November 12, 2014 at 3:16 pm GMT

Sterling was – as expected – the main focus of attention during today’s European trading as key employment statistics out of the UK, the publication of the Bank of England’s inflation report and Mark Carney’s press conference provided plenty of news to digest. Cable dropped to around 1.58 from above 1.59 before the day’s events and euro / pound climbed to 78.80 pence from just above the 78 pence level. Mark Carney’s statement that he was “more likely than not” [..]

Forex News – Slightly worse than expected employment, dovish Carney hit Sterling

Posted on November 12, 2014 at 1:52 pm GMT

It was a busy day for the UK currency as the release of the monthly employment data as well as the quarterly Bank of England Inflation Report and the press conference by the Bank’s Governor Mark Carney took place. Firstly, Unemployment with the ILO definition missed predictions for a drop to 5.9% from 6% the previous period. This combined with the slower growth in employment (+112 thousand the quarter-on-quarter change) and the constant claimant count rate of 2.8%, suggests that [..]

Technical Analysis – EURJPY, Daily: Euro / Yen, overbought, eyes 11-month high at 145.66

Posted on November 12, 2014 at 9:06 am GMT

With the recent wave of yen weakness, the euro has managed to make a new high for the year against the Japanese currency at 144.69. However, euro / yen has still not managed to exceed the 6-year high which was registered back in late December of 2013 at 145.66. This is the next target of the euro up move and should be relatively easy to achieve. However, as is the case with other yen crosses, the yen is quite oversold [..]

Asian Session – US Dollar gives back ground in absence of further positive news

Posted on November 12, 2014 at 7:42 am GMT

The dollar retreated during the latter half of today’s Asian session, as traders decided to book some further profits on their dollar longs. The absence of fresh positive news to sustain the dollar’s positive momentum also weighed on the currency. The Japanese yen managed to push the dollar back to 115.14, as the greenback briefly topped the 116 yen level the previous day. The yen was at the center of attention, as there were unconfirmed reports of Prime Minister Abe’s [..]

European Session – Yen under pressure after reports that sales tax hike to be delayed

Posted on November 11, 2014 at 3:03 pm GMT

The Japanese yen found itself under renewed pressure after a report the government was considering a delay in raising the sales tax again. There was also the scenario of an early election and this means that both monetary and fiscal stimulus would be present in the months ahead. This boosted equities and weakened the yen as the dollar momentarily traded above 116 yen (a fresh 7-year high) and euro / yen climbed to 143.82. Euro / dollar was relatively little [..]

Forex News – Yen drops on government decision reports, ignores current account

Posted on November 11, 2014 at 1:17 pm GMT

The Japanese currency slipped to a fresh 7-year low today, on improving risk appetite and reports that an early Japanese election could be called and that a planned sales tax increase next year would be delayed. An early election – possibly before the end of the year – would most probably lead to a renewal of Shinzo Abe’s mandate for 4 additional years and that would prevent the further erosion of his popularity if the economy fails to rebound. The [..]

Technical Analysis – Dollar / yen breaks to 7-year high at 116; likely volatility ahead

Posted on November 11, 2014 at 9:09 am GMT

Dollar / yen rose to its highest level since October 2007 today, topping 116 at one level. It has been a remarkable rally for the dollar, since the October 31 announcement by the Bank of Japan that it would increase its already substantial monetary stimulus. Dollar / yen rose from 109 to 116 in the ensuing period. On the upside, if the dollar’s bullish move continues, it could challenge the 123.50-124 highs of 2007. The 120 level could present some [..]

Asian Session – Yen drops as dollar advances closer to previous week’s highs

Posted on November 11, 2014 at 7:49 am GMT

The Japanese yen was the session’s biggest loser, as strong risk appetite worked against the currency after stocks in both Wall Street and Tokyo rallied. 10-year US Treasury yields also climbed to 2.36%, which was another supportive factor in favor of the dollar. Dollar / yen traded as high as 115.44, within striking distance of the 115.60 7-year high of the previous week. Euro / yen was also strong, scaling the 143 handle to trade at 143.31. The yen received [..]

European Session – Dollar regains some lost ground in the absence of news

Posted on November 10, 2014 at 2:48 pm GMT

The US dollar managed to reclaim some of the ground it lost during the Asian session, pushing euro / dollar back towards 1.2474 and gaining against the yen to reach 114.3. The US dollar was still relatively far from the highs it achieved before Friday’s US employment report, which proved to be an excuse for taking profits by dollar longs. There is some concern that the dollar may have gained too much too fast and that the level of speculative [..]

Technical Analysis – GBPUSD, Daily: Pound on downtrend and 15-month low versus dollar

Posted on November 10, 2014 at 9:18 am GMT

Like most other currencies, the pound has also been a victim of the strength of dollar strength, as the currency’s bull run ended at 1.7190 in mid-July earlier this year. Pound / dollar made a new 15-month low of 1.5788. The indications for the pound are negative since it is trading below the cloud and the Tenkan-sen is below the Kijun-sen, which is also negative. The Chikou span is also free to move lower, as it may encounter resistance only [..]

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.

News

XM Live Chat