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Asian Session – US dollar softens as Fed begins final policy meeting of the year

Posted on December 13, 2016 at 6:37 am GMT

The Federal Reserve begins a two-day monetary policy meeting today and markets highly anticipate a rate rise of at least 25 basis points. This would be the first increase in a year. US Treasury yields and the dollar have been rising in the buildup to the FOMC meeting. The benchmark 10-year Treasury bond yield jumped to a 2-year high on Monday before steadying. The greenback climbed to a fresh 10-year high of 116.11 yen yesterday but eased slightly to trade [..]

European Session – Euro and pound head higher as dollar falls back; Oil holds near highs

Posted on December 12, 2016 at 4:32 pm GMT

The US dollar hit a fresh 10-month high against the yen at the start of European trading on Monday, only to fall back later in the session. The greenback retreated to around 115.40 yen in late European session, having earlier briefly broken above 116 yen for the first time since February. Investor nerves over the Fed’s two-day policy meeting, which starts tomorrow, weighed on the dollar, even as US treasury yields continued to edge higher. Government bonds yields have been [..]

Technical Analysis – USDCAD extends decline; short term bearish bias remains

Posted on December 12, 2016 at 9:12 am GMT

USDCAD extended its decline on Monday to touch a low of 1.3110, the lowest since October 20. The short-term bearish bias is still in place and this is highlighted by the falling RSI and MACD. Prices are heading towards the 200-day moving average which would likely act as support and restrict a further decline. This support level lies at 1.3074 and coincides with the 61.8% Fibonacci retracement level of the rise from 1.2762 to 1.3587. Below this, the key 1.3000 [..]

Asian Session – Oil jumps to 1-½ year high after non-OPEC producers agree to cut output; Canadian dollar gains

Posted on December 12, 2016 at 7:47 am GMT

Oil prices surged more than 4 per cent on Monday after non-OPEC producers reached an agreement to cut production by 558,000 barrels a day starting in January. The deal comes two weeks after OPEC made a pact to reduce output by 1.2 million barrels a day. These were both landmark deals that aim to ease the global oil supply glut and help boost oil prices. Since the November 30 OPEC deal, oil prices have gained 20 percent to their highest levels [..]

European Session – Dollar makes new 10-month high vs yen; euro slips below $1.06

Posted on December 9, 2016 at 4:08 pm GMT

The US dollar was back in demand in Friday’s European session as yesterday’s policy decision by the ECB boosted US treasury yields, while the euro sagged. The yen also fell back on the back of broader risk-on sentiment. The ECB’s surprise announcement on Thursday that it will reduce the pace of monthly asset purchases and add lower yielding and shorter-dated bonds to its list of securities continued to weigh on the single currency today. The euro slipped below 1.06 dollars [..]

Forex News – China reports rising consumer and producer prices in November

Posted on December 9, 2016 at 3:16 pm GMT

China’s economy has shown signs of recovery as inflation rose in November, driven higher by pick-up in industrial activity. Producer prices rose the highest in five years last month as a result of the impact of rising industrial commodities prices globally. China is the world’s second largest economy and has a heavy manufacturing sector. It is a major consumer of raw materials such as coal, steel and copper. The producer price index jumped 3.3 per cent year-on-year in November, the most [..]

Week Ahead – All eyes on Fed; Bank of England, SNB and Norges Bank meet too

Posted on December 9, 2016 at 1:30 pm GMT

After this week’s surprise actions by the ECB, markets will be hoping that central bank meetings over the next seven days won’t stray too far from expectations. Apart from the Fed’s much anticipated FOMC meeting, central bankers from the UK, Switzerland and Norway will also be gathering for their regular policy meetings. In terms of data, inflation and retail sales figures for the UK and the US will be the main highlight. Japanese business outlook expected to improve in Q4 [..]

Technical Analysis – EURUSD bearish below 1.09

Posted on December 9, 2016 at 8:49 am GMT

EURUSD regained the 1.06 handle today after a more than 1 percent drop on Thursday. The bias remains to the downside. Immediate support lies at 1.0600 and below this 1.0500 is another key support level. To the upside the 1.0700 level is a barrier. Above this 1.0850 is another resistance level. The 50-day moving average provided resistance on Thursday at 1.0873. Looking at the bigger picture, the structure is bearish and the market is below the moving averages. There was [..]

Asian Session – Euro consolidates losses after confusing ECB move; China’s inflation rises

Posted on December 9, 2016 at 7:44 am GMT

China released data today which showed inflation was on the rise in the world’s second largest economy. Consumer prices rose 2.3% year-on-year in November, which was faster than the expected 2.2% rise but beat the previous month’s 2.1% increase. The main driver behind the quicker pace of inflation was the rise in food prices. The Australian dollar initially fell despite the upbeat figures out of China, which is Australia’s major trading partner. The aussie dipped to a session low of [..]

Forex News – ECB surprises by extending QE to December 2017 and slowing pace of bond purchases

Posted on December 8, 2016 at 4:17 pm GMT

The European Central Bank held its final policy meeting of this year and unveiled new parameters in its quantitative easing programme. Interest rates remained unchanged as expected. The main takeaway of today’s policy announcement was that the central bank would maintain monetary policy until its scheduled end date in March 2017 but decided to extend the asset purchase program beyond this date with some tweaks to it. The euro initially surged on the news to hit a one-month high of [..]

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