News / Page 35

European Session – Euro see-saws as ECB shocks by cutting size of bond purchases

Posted on December 8, 2016 at 3:32 pm GMT

The euro’s steady ascent in today’s European session came to an abrupt end after the European Central Bank surprised markets by unexpectedly reducing the size of its asset purchase program. At its latest policy decision, the ECB kept its main interest rates unchanged but defied consensus expectations that it would continue purchasing Eurozone government bonds at a monthly pace of €80 billion, and instead announced it will reduce the size to €60 billion from April 2017. The ECB also surprised [..]

Technical Analysis – WTI oil futures remain on uptrend despite strong resistance around 52.00

Posted on December 8, 2016 at 1:45 pm GMT

WTI oil futures are looking bullish again in the near term following last week’s sharp gains. The MACD is back in positive territory and above the red signal line. Prices are also above the Ichimoku cloud and the moving averages, underlining the bullish picture. However, although prices reached a 17-month high of 52.38 on Monday, it is the third time since June that oil futures have met stiff resistance in the 51.50-52.50 zone. A sustained rise above 52.50 is needed [..]

Technical Analysis – EURGBP looking bearish below cloud

Posted on December 8, 2016 at 9:53 am GMT

EURGBP has rallied 3% from the 4½-month low of 0.8304 it set on Monday, but despite the gains, the pair remain significantly below the Ichimoku cloud. Prices moved below the cloud and below the 50-day moving average in November, and the Tenkan-sen and Kijun-sen lines are negatively aligned, indicating a bearish bias in the near-term. RSI also points to negative momentum as it remains below 50 (although it has recovered from oversold levels). If prices resume their downtrend, immediate support [..]

Asian Session – Euro edges higher as focus turns to crucial ECB meeting; China reports upbeat trade data

Posted on December 8, 2016 at 5:59 am GMT

Market sentiment was upbeat in the Asian session today and received an added boost after China reported much better than expected trade data. Both imports and exports rose to leave a trade surplus of $44.6 billion. China is the second largest world economy, and today’s data is an indication of stronger global, as well as domestic demand. Imports rose 6.7% year-on-year, contrary to expectations of a 1.3% decrease, while exports increased 0.10% year-on-year versus a projected 5% decline. Both readings [..]

European Session – Pound slips on weak data, Brexit vote but euro firmer ahead of ECB

Posted on December 7, 2016 at 3:44 pm GMT

Major currencies were struggling for direction in Wednesday’s European session as cautiousness set in ahead of tomorrow’s ECB policy decision and next week’s FOMC meeting. The US dollar and the euro were confined to tight ranges but the pound underperformed as a combination of disappointing data and Brexit developments took their toll on the British currency. The euro benefited from positive risk sentiment brought about by reports suggesting Italy’s third biggest lender will likely receive a state bailout. This eased [..]

Investment themes – Euro / dollar at crossroads as “Trump trade”, European uncertainty may have peaked for now

Posted on December 7, 2016 at 1:46 pm GMT

The announcement that the Italian referendum on Sunday, December 5 was lost by the government with the decisive margin of 60-40, led to a 21-month low in the euro / dollar exchange rate. Euro / dollar briefly dipped to 1.0505 but the pair quickly rebounded to above 1.07. Below 1.05 lies the 13-year low of 1.0460, which was struck in March 2015. The euro’s rebound surprised market participants as the single currency found itself trading higher than the level at [..]

Forex News – Australian GDP data casts doubt on RBA’s rosy outlook; aussie slides on negative growth

Posted on December 7, 2016 at 11:55 am GMT

Australia’s economy unexpectedly contracted in the third quarter of the year as business investment and construction output deteriorated more sharply than anticipated. Australia’s GDP declined by 0.5% quarter-on-quarter in the three months to September – the first contraction in 5½ years. Expectations were for the economy to expand by 0.3% q/q and it compares with an upwardly revised figure of 0.6% in the prior quarter. On a year-on-year basis, growth slowed from an impressive 3.1% rate in the second quarter [..]

Technical Analysis – USDJPY neutral at overbought levels; bullish structure remains

Posted on December 7, 2016 at 8:39 am GMT

USDJPY hit a 10-month high of 114.82 on December 1 and has since struggled to advance further. The bullish market structure remains in place but in the near term the bias has turned neutral as the market consolidates gains after the strong rally that took prices to overbought levels. RSI remains in overbought territory above 70 although the indicator has eased lower from last week’s high of 85. Any decline in USDJPY is expected to find immediate support at 112.86 [..]

Asian Session – Aussie drops on negative Australian GDP number

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

The Australian dollar was one of the worst performing major currencies in today’s Asian session after GDP data showed the Australian economy contracted more than expected in the third quarter. The aussie tumbled to $0.7415 from $0.7473 in reaction to news of the worst contraction since the financial crisis. Third quarter GDP fell 0.5% quarter-on-quarter and was the first negative result since the first quarter of 2011. In the previous quarter, GDP rose a revised 0.6%. Today’s number was much [..]

European Session – Euro steadier as Italy remains in spotlight; Dollar slightly firmer

Posted on December 6, 2016 at 3:44 pm GMT

Major currencies were steadier in European trading on Tuesday with the euro and the pound holding near multi-week highs, while the US dollar firmed from yesterday’s 3-week low. The positive risk sentiment from Asia carried forward to the European session with major European stock indices extending Monday’s gains. Reports that the Italian government was preparing a state aid for the country’s third largest bank, Monte dei Paschi di Siena, helped the recovery in risk appetite following the rejection by Italian [..]

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