News / Page 347

European Session – Euro drops below $1.37 as dollar strengthens

Posted on February 26, 2014 at 2:56 pm GMT

Most major currency pairs traded well within yesterday’s ranges, with few market moving news headlines today. There was economic data out today with regards to German consumer confidence and UK revised GDP but the market will likely take its direction from more important events such as Eurozone inflation data on Friday and Fed Chair Yellen’s testimony on Thursday. The euro hit a new daily low against the dollar after tumbling to 1.3710. Highs of 1.3756 were hit early in the [..]

Forex News – Analysts ponder over meaning of recent yuan drop

Posted on February 26, 2014 at 2:54 pm GMT

On Tuesday, 25th February, the Chinese Yuan dropped at a rate which drove it outside the plus or minus 1% level from a midpoint set by the People’s Bank of China. This was a relatively rare occurrence. The dollar rose by 1.3% compared to its mid-January low of 6.04 to reach 6.126 by the end of trading on Tuesday. Tuesday’s move of almost 0.5% was significant given the glacial pace with which the tightly controlled yuan moves. For example, during [..]

Technical Analysis – Will EURCAD uptrend hold or reverse on double top?

Posted on February 26, 2014 at 10:02 am GMT

EURCAD has been in a strong uptrend in recent months, climbing to a more-than 4-year high. The market has stalled after reaching the 1.5300 area. The upper Bollinger band is also capping the market around this area. After breaching 1.5200 the pair accelerated higher to form a top at 1.5303 before falling back to find support at 1.4912. This is the 23.6% Fibonacci level of the move from the September 6 low of 1.3645 to the January 29 high of [..]

Asian Session – Dollar hurt by low US consumer confidence

Posted on February 26, 2014 at 7:43 am GMT

There was little action again in the Asian session. Weak US consumer confidence data offered little encouraging signs for a strong economic outlook in the United States. The Conference Board survey showed consumer confidence in February fell to 78.1 versus 80 forecast and 79.4 previous. Other data showed US home price gains slowed in December. Meanwhile there were comments from the Fed policy maker Daniel Tarullo yesterday who said that monetary policy is a possible tool to deal with broad [..]

Forex News – S&P 500 makes new intraday all-time high – what does it signal?

Posted on February 25, 2014 at 3:27 pm GMT

Following a challenging January, the US stock index benchmark, the S&P 500 was down 5.7% year-to-date at the beginning of February – its first 5% correction since June of 2013. Since the February 3 low, it has rallied sharply, to make a fresh intraday high of 1858. The index was up 30% during 2013; its best year since 1997. There was plenty of optimism coming into 2014, as according to the consensus view, a strengthening US economy was likely to [..]

European Session – Sterling rises after BOE’s McCafferty comments

Posted on February 25, 2014 at 3:18 pm GMT

News flow was limited in the Asian and European sessions today resulting in subdued trading with most currency pairs contained in ranges. Dollar weakness prevailed across the board as weak US data yesterday continued to weigh on sentiment for the US currency. The best performer was the sterling after Bank of England MPC member Ian McCafferty said market expectations of a rate hike in spring next year were “not unreasonable”. Sterling rose to a session high of 1.6717 on the [..]

Technical Analysis – Is the S&P forming a double top?

Posted on February 25, 2014 at 9:34 am GMT

The S&P hit an intra-day record high on Monday at 1856.25. Prices fell back below key resistance of 1845.75 which is a level that has been retested several times and has been difficult for the market to stay above. The long-term trend is bullish as indicated by the moving averages. The 50, 100 and 200-day moving averages are all rising and price action remains above them. However, in the short-term, a correction to the downside is possible as the market [..]

Asian Session – Dollar lower after weak US data

Posted on February 25, 2014 at 7:42 am GMT

The Asian session was relatively quiet due to the lack of market moving data. Risk sentiment was upbeat though as Wall Street swung higher and the S&P hit a record high yesterday. The Nikkei average climbed to a 4-week closing high. The dollar is broadly lower after US economic data from Monday’s session was mostly weak, as Markit Services PMI posted a substantial drop in February, the National activity index from the Chicago Fed fell to a 7-month in January [..]

European Session – Euro reverses post – German Ifo rally

Posted on February 24, 2014 at 2:42 pm GMT

An unexpected rise in German business morale gave a boost to the euro which rallied close to a 7-week high versus the dollar. Gains were capped after Eurozone annual inflation came in well below the European Central Bank’s target. The February German Ifo business climate index reached its highest level since July of 2011, hitting 111.3, versus 110.6 the previous month. A separate report showed Eurozone CPI rose to above-forecast at 0.8%. However, the reading was below the ECB’s 2% [..]

Forex News – German IFO business sentiment survey points to economic improvement

Posted on February 24, 2014 at 1:53 pm GMT

News that the German IFO business climate index in February reached its highest level since July of 2011 was further evidence that the German economy was on a steady path of recovery during the course of 2014. The business climate index came in at 111.3, versus 110.6 the previous month and also 110.6 that economists were expecting. The other components of the survey also gave an upbeat picture. The current conditions index jumped to 114.4 versus 112.4 the previous month. [..]

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