News / Page 288

Forex News – US August nonfarm payrolls’ disappointment seen as one-time miss

Posted on September 8, 2014 at 11:56 am GMT

News on Friday that the change in August nonfarm payrolls was below expectations was a surprise as the labor market had shown consistent strength in delivering new jobs over 200 thousands monthly for six straight months. Therefore, news that the number of new positions created was just 142 thousand against expectations of 225 thousand was a negative surprise. There were also some negative decisions during the previous months. However, there was some suspicion that one-off factors were at work. For [..]

Technical Analysis – EURCHF near 2-year lows

Posted on September 8, 2014 at 9:52 am GMT

EURCHF downside remains as prices continue to fall within the bearish channel. The negatively aligned tenkan-sen and kijun-sen lines highlight the bearish market structure as does the RSI which is below 50. However RSI is approaching oversold levels at around 30 which signals some exhaustion in the downside momentum. Prices are consolidating in the past few days after touching an almost 2-year low of 1.2043 on September 4. The downside target comes in at 1.2027 and 1.2005. Resistance is seen [..]

Technical Analysis – USDJPY rallies to near 6-year highs

Posted on September 8, 2014 at 7:03 am GMT

USDJPY rallied up to new multi‐year high of 105.69 on Friday – the highest since October 2008. The pair broke above the January 2nd high of 105.43. The short-term daily technicals remain bullish, with most indicators showing upside potential. The tenkan-sen and kijun-sen lines are positively aligned. However the RSI is at extreme levels above 70 warning that the market is overbought. Also prices are well above the Ichimoku cloud. Support is seen at 104.33 while the next level of [..]

Asian Session – Yen under pressure following disappointing GDP, current account data

Posted on September 8, 2014 at 6:42 am GMT

The yen was under some pressure during today’s Asian session as Japanese second quarter GDP contracted slightly more than anticipated by analysts. The initial estimate was a contraction of 6.8%, while the revised number showed a 7.1% annualized contraction. A worrying sign was that business investment contracted by a larger-than-initially-estimated 5.1% (-2.5% was the initial estimate). The economy’s weak performance was of course due to the sales tax increase on 1st April, but it is an open question now whether [..]

European Session – Weak jobs creation causes profit-taking in dollar

Posted on September 5, 2014 at 1:41 pm GMT

The dollar’s advance was halted today as a result of a weak US employment report for August. The headline number of jobs created dropped to 142 thousand compared to a slightly upwardly revised 212 thousand figure during the previous month. It was the weakest performance this year in terms of jobs created and although the figure is not excessively weak, it does show some moderation in the pace of job creation. There were also some special factors at play such [..]

Forex News – Week ahead: Chinese trade and inflation, New Zealand rates and US retail sales to dominate

Posted on September 5, 2014 at 12:16 pm GMT

Next week will definitely be a bit of an anti-climax given the really important ECB meeting and US employment report of the week that just passed. Data out of China, Australia and the United States will be complemented by the monetary policy decision by the Reserve Bank of New Zealand. Starting with the US dollar, the absence of major events and economic releases until Friday’s advance retail sales report for August, may cause a pause in the dollar’s rally as [..]

Technical Analysis – EURUSD Weekly: after 1.30, what’s next?

Posted on September 5, 2014 at 8:29 am GMT

The rapid descent of the euro against the dollar from the 1.3992 level in early May (a near 3-year high), to below 1.30, forces traders to turn to longer-term charts in order to find important technical areas that could act as support. After the euro broke the psychologically important 1.30 level, it registered a low at 1.2920, which is the lowest since July of 2013 – a 13-month low. Looking at the chart, the next important level is 1.2750. This [..]

Asian Session – US dollar rallies across the board on policy divergence bets

Posted on September 5, 2014 at 7:01 am GMT

The US dollar registered some sharp gains, as economic data released out of the United States, supported the case in favor of a recovering US economy and tighter monetary policy, in contrast to other developed economies such as the Eurozone and Japan. The previous day’s non-manufacturing (or services) ISM number climbed to its highest in 9 years. The dollar’s outsized gains came after the European Central Bank cut its key target rate by 0.10% to lower it to 0.05% and [..]

European Session – ECB rate cut, ABS purchase program plunges euro to 1.30 level

Posted on September 4, 2014 at 2:21 pm GMT

A surprise 10 basis points rate cut by the ECB, driving the key refinancing rate down to just 0.05% as well as a decision to begin the purchase of asset-backed securities made up of loans to the private, non-financial sector, drove the euro substantially lower during today’s European session. This was a surprise to the markets, as many were expecting the ECB to take little action ahead of October’s bank stress test announcement and as many speculated that the ECB [..]

Forex News – Bank of Japan keeps policy steady while Kuroda hints at yen weakness

Posted on September 4, 2014 at 12:36 pm GMT

The Bank of Japan kept its policy unchanged today, with zero interest rates and a quantitative easing program of 60-70 trillion yen annually (570-670 billion dollars). Governor Kuroda sounded upbeat about the economy’s prospects, both with respect to economic growth as well as inflation. He was optimistic that a recovery in jobs and incomes would help the economy overcome the second quarter weakness when the sales tax was raised from 5% to 8%. However, given some recent weakness in household [..]

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