News / Page 294

Forex News – Soft UK inflation pressures sterling

Posted on August 19, 2014 at 9:49 am GMT

UK inflation data released today pushed sterling lower as the softer numbers will likely ease pressure on the Bank of England to raise interest rates soon. The headline inflation number came in well below the BoE’s target 2% rate. According to the Office for National Statistics the Consumer Price Index (CPI) for July rose 1.6% year-on-year. The drop was more-than-expected, as analysts had forecast a decline to 1.8% from June’s 1.9%. On a month-to-month basis, consumer process fell 0.3%. The [..]

Technical Analysis – GBPUSD downside risk

Posted on August 19, 2014 at 7:44 am GMT

The downtrend from mid-July remains intact and GBPUSD appears to remain under pressure while it trades below the daily Ichimoku cloud and the downtrend line. Technical indicators show downside risk – tenkan-sen and kijun-sen are negatively aligned, RSI is in bearish territory and MACD is negative. The market is below the 10-day moving average but is supported by the 200-day moving average, suggesting there might be a temporary pause in the decline of prices. Near-term support is seen at 1.6656, [..]

Asian Session – US dollar holds firm, FOMC minutes eyed

Posted on August 19, 2014 at 7:02 am GMT

The US dollar held onto gains made after being boosted yesterday by upbeat US housing data. Rising US Treasury yields helped buoy the dollar after the NAHB Housing Market index rose more-than-expected to reach a 7-month high in August. The dollar extended gains versus the yen today to reach a high of 102.64, having maintained a rally from a low of 101.50 hit on August 8. The main driver of the dollar will be the FOMC minutes from the Federal [..]

European Session – Dollar boosted by US housing data

Posted on August 18, 2014 at 2:56 pm GMT

The dollar strengthened after upbeat US housing data, causing the euro to lose earlier gains. The euro tumbled to a low of 1.3358. Earlier in the day, the euro had inched up to 1.3394 after better-than-expected Eurozone trade surplus at +16.8bln euros versus +15.3bln expected and up from a previous +15bln expected. However other fundamentals from the Eurozone will likely pressure the euro. Last week’s combination of disinflation, disappointing growth from the three largest European economies and a flat quarterly [..]

Forex News – Week Ahead: All eyes on Jackson Hole Symposium

Posted on August 18, 2014 at 9:50 am GMT

The meeting of world central bankers at the Jackson Hole Symposium this week will be the main focus of the markets, particularly on Friday when Fed Chair Janet Yellen gives her keynote speech. Investors will look out for any clues on the timing of interest rate rises by the Fed, which has kept rates at near zero in an effort to help spur recovery in the US economy. Other central bank speakers at Jackson Hole include European Central Bank Chief [..]

Technical Analysis – EURUSD consolidates and pauses decline

Posted on August 18, 2014 at 7:28 am GMT

EURUSD is consolidating near 9-month lows of 1.3332 and remains capped below the key psychological level of 1.3400. On the daily chart, the tenkan-sen and kijun-sen lines have leveled off, while the stochastic and RSI are rising, signaling that the downside momentum has weakened for now. This gives scope for a bounce to 1.3444, the August 1st high, once prices are able to break above the key 1.3400 level. A daily close below the 2014 low of 1.3333 will increase [..]

Sterling boosted by BoE Governor Carney comments

Posted on August 18, 2014 at 6:52 am GMT

Sterling was the biggest mover early in the Asian session as it opened with a gap higher at 1.6730 from Friday’s close of 1.6690 and peaked at a high of 1.6733. The main catalyst to the rally was a comment from Bank of England Governor Mark Carney over the weekend which signaled that interest rates could rise soon as real wages were not a pre-condition for rate hike. The euro held onto gains made against the dollar after rallying Friday [..]

European Session – Dollar weaker after US jobless claims hit 6-week high

Posted on August 14, 2014 at 1:11 pm GMT

The euro was resilient despite a run of disappointing Eurozone data today which showed the region’s economy stalled in the second quarter of the year. A surprise contraction in Germany and weakness in the French economy dragged overall gross domestic product figures. The Eurozone was expected to grow by at least 0.1%, a slightly slower rate than a prior 0.2%. The zero growth rate raised concerns about the state of the economic recovery in the 18-nation region, which is likely [..]

Forex News – German economy contracts in Q2, drags Eurozone growth down

Posted on August 14, 2014 at 11:03 am GMT

The Eurozone economy stalled in the second quarter of the year, after a surprise contraction in Germany and weakness in the French economy dragged overall gross domestic product figures. The Eurozone was expected to grow by at least 0.1%, a slightly slower rate than a prior 0.2%. The zero growth rate raised concerns about the state of the economic recovery in the 18-nation region, which is likely to be impacted negatively by the Ukraine crisis and the sanctions against Russia, [..]

Technical Analysis – GBPUSD selling pressure

Posted on August 14, 2014 at 8:16 am GMT

GBP/USD briefly spiked to 1.6837 on Wednesday and after failing to close above the key 78.6% Fibonacci retracement level the pair tumbled to retrace 100% of the 1.6698 – 1.7190 upleg. Cable was last at 1.6656 early on Thursday, with the bias firmly on the downside and with scope to target the March 24 low of 1.6464. The daily technical indicators are reinforcing the bearish market structure. The tenkan-sen and kijun-sen lines are increasingly negatively aligned, while RSI and MACD [..]

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