News / Page 302

Asian Session – Kiwi slumps on RBNZ comments, aussie benefits from Chinese PMI

Posted on July 24, 2014 at 6:45 am GMT

The Kiwi or the New Zealand dollar was the main loser of today’s trading after the Central Bank Governor Graeme Wheeler warned that the level of the currency was “unjustified and unsustainable”. After the Reserve Bank of New Zealand hiked rates as expected to 3.50% from 3.25%, the Governor also signaled a pause in the interest rate increase cycle so as to observe what is happening to inflation and the economy following the rise in the currency and the four [..]

Technical Analysis – S&P 500 rallies to all-time highs

Posted on July 23, 2014 at 2:15 pm GMT

The S&P 500 remains bullish and is currently consolidating at all-time highs after a strong rally that took it to a new intra-day high of 1980.50 today. The 21-day and 200-day moving averages are positively aligned and the market is supported above the 21dma. The tenkan-sen and kijun-sen lines are also positively aligned, adding to the bullish market structure. Momentum indicators are in bullish territory although showing signs of exhaustion. The RSI and MACD have flattened out while the stochastic [..]

European Session – Sterling falls after BoE minutes

Posted on July 23, 2014 at 1:26 pm GMT

The main focus of the markets today was on the Bank of England policy meeting minutes which revealed the voting pattern of the Monetary Policy Committee (MPC). The voting results showed that there was a unanimous vote amongst the nine-member MPC. The minutes were less hawkish than expected and showed that MPC members were cautious with regards to the central bank’s policy decision, thereby failing to boost expectations of an interest rate hike by the end of this year as was hoped. [..]

Forex News – US core inflation for June comes in soft, fails to boost US dollar

Posted on July 23, 2014 at 8:53 am GMT

The US inflation report for June was not particularly exciting news, as the figures more or less met expectations. Headline inflation came in at 0.3% month-on-month and 2.1% year-on-year; right in line with forecasts. Core inflation however, which excludes volatile food and energy prices, was slightly below expectations as it came in at 0.1% month-on-month and 1.9% year-on-year (0.2% and 2.0% respectively was what was expected). Furthermore, higher gasoline prices were responsible for 0.2% of the 0.3% month-on-month rise of [..]

Technical Analysis – EURUSD strongly bearish below 1.3500

Posted on July 23, 2014 at 6:55 am GMT

EURUSD has turned bearish after breaking below key support of 1.3500. Daily technical indicators all point to the downside bias – RSI has fallen into bearish territory below 50, MACD has fallen below zero and the stochastic is at oversold conditions. Prices remain below the daily Ichimoku cloud and there was a bearish cross of the tenkan-sen and kijun-sen lines. The psychological level at 1.3400 comes into focus. Below this, there is scope to target the November low of 1.3293. [..]

Asian Session – Aussie surges on higher-than-expected inflation while euro languishes

Posted on July 23, 2014 at 6:38 am GMT

The Australian dollar was the day’s best performer following inflation figures that beat estimates. The trimmed mean consumer price index, which excludes the most extreme price changing categories, is an inflation measure that the Reserve Bank of Australia closely follows when setting monetary policy. The year-on-year change came in at 2.9% versus 2.7% expected. The RBA targets inflation between 2% and 3%. Other measures of inflation were more or less in line with expectations. The Australian inflation figures mainly disappointed [..]

European Session – Dollar falls after US inflation data

Posted on July 22, 2014 at 1:36 pm GMT

The dollar was the main focus of the markets today as important inflation data was to be released from the US. The Consumer Price Index (CPI) is an important input into Fed policy so the data today caused some volatility in the dollar. The headline CPI number came in as expected at 0.3% month-on-month in June, down from May’s 0.4%. The core number came in slightly below expectations at 0.1% versus 0.2% forecast. A higher CPI number would have been [..]

Forex News – Geopolitical risk and its impact on the markets

Posted on July 22, 2014 at 10:03 am GMT

Some serious negative geopolitical events have been influencing markets during the past few weeks and months and geopolitics is fast becoming a factor that investors must pay close attention to. The crisis in Ukraine has proved a focal point during 2014, as markets gyrate from unease to calm over events such as the annexation of Crimea by Russia, the fighting in Eastern Ukraine, the withdrawal of Russian troops from the border between Russia and Ukraine and sanctions imposed by Europe [..]

Technical Analysis – EURJPY bearish below 137.00

Posted on July 22, 2014 at 7:00 am GMT

EURJPY is very bearish, continuing to push lower after breaking below a key support level at 137.50. Prices are below the daily Ichimoku cloud and the tenkan-sen and kijun-sen lines are negatively aligned, adding to the bearish market structure. Momentum is also bearish – RSI is below 50 and MACD is below zero. There is scope to target support at 136.22, the February 4 low. To the upside, resistance lies at 137.50 and 139.28. EURJPY remains bearish below 137.00. [..]

Asian Session – Focus on geopolitics helps oil to climb; yen drops on risk rebound

Posted on July 22, 2014 at 6:38 am GMT

The yen was the main loser during Tuesday’s Asian trading as some investors used the market’s nervousness about developments out of Ukraine and Gaza as an opportunity to buy risk assets cheaper and get rid of safe haven assets. Dollar / yen traded north of 101.50 at 101.55, while euro / yen was well bid above 137 at 137.31. The positive risk sentiment and the fall in the yen helped the Nikkei rise by 0.84%, while gold fell below 1310 [..]

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