News / Page 359

Technical Analysis – S&P rally stalls near all-time highs

Posted on January 15, 2014 at 9:40 am GMT

The S&P 500 rally has currently stalled near the all-time highs hit on January 2nd when it reached 1845.75. The market is now at an important point as the S&P consolidates at these all-time highs and it would be interesting to see if it will be able to sustain these gains to push above the 1845 level. Key resistance is definitely found at 1850 but once prices break above this level, a move higher will be accelerated to the 2000 [..]

Asian Session – Dollar bolstered by US retail sales and more tapering expectations

Posted on January 15, 2014 at 7:34 am GMT

The US dollar was bolstered by better-than-expected US retail sales data, which helped ease concerns about the pace of growth in the US economy. Investors felt more confident in buying back the dollar after its recent retreat on the back of weak nonfarm payrolls on Friday. December US retail sales edged up in December by 0.2% while a core gauge posted a larger increase of 0.7% versus 0.4% expected. The data showed that American consumers spent more and that the [..]

Forex News – Retail sales data show US consumer in good form during December

Posted on January 14, 2014 at 3:17 pm GMT

[caption id="attachment_12659" align="alignnone" width="550"] (click to enlarge)[/caption] Following the disappointing employment report, today’s advance retail sales for December was the most important indicator of the current week concerning the US economy. Specifically, the question is whether the much weaker-than-expected nonfarm payrolls is an indication of a weakening US economy or if other indicators are pointing to a decent economic recovery and that the employment report was a weather-related one-off. Following today’s release on retail sales, the indication is that consumer [..]

European Session – Euro higher on Nowotny remarks, pound up despite slower UK inflation

Posted on January 14, 2014 at 2:30 pm GMT

Positive newsflow from the Eurozone kept the euro buoyed while the pound recovered after UK inflation data. In other news, US retail sales helped the dollar against the yen but otherwise had little impact. The main data release during the European session was UK CPI data for December, which showed a slower pace in inflation at 2% versus a prior 2.1%. The pound initially dropped on the news to 1.6395 but soon recovered later in the session to highs of [..]

Technical Analysis – USDJPY to resume upside momentum?

Posted on January 14, 2014 at 8:44 am GMT

USDJPY underlying upside momentum in the long term remains bullish but in the short-term there is some consolidation of the recent strong rally that took the pair to 5-year highs. Friday’s weak nonfarm payrolls pushed the pair to retreat to 102.84 on Monday, the lowest since December 18 and off the 5-year high of 105.43 hit on January 2nd. On the daily chart, USDJPY has retraced 23.6% of the move from the October 2013 low of 96.53 to the January [..]

Asian Session – Yen weakens on record trade deficit

Posted on January 14, 2014 at 7:24 am GMT

The yen gave back some gains made recently against the dollar after Japan’s disappointing current account data dented sentiment on the Japanese currency today. This gave a chance for the dollar to recoup losses made after a huge tumble following disappointing US nonfarm payrolls data on Friday. The weaker jobs number caused a sell-off in the dollar as markets were concerned about the health of the US economy and there was some speculation that a Fed rate hike may be [..]

European Session – Euro and pound drop as dollar rebounds, yen extends post-nfp gains

Posted on January 13, 2014 at 2:30 pm GMT

The pound and the euro were the biggest losers of the European session as the dollar managed to reduce the pace of its decline after the weak employment report on Friday. The yen continued to make sharp gains against currencies that did particularly well against it during the previous year. In this way, the euro dived against the yen, hitting more than a 1-month low as it fell below 141 to 140.76 – down 0.44%. On Friday’s US close, the [..]

Forex News – Week ahead: more data to shed light on fed tapering pace

Posted on January 13, 2014 at 1:20 pm GMT

Following the weaker-than-expected employment report the previous Friday, the main focus of the week ahead will be what fresh data imply about the strength of the US economy. Specifically, a key number that will be watched is the advance December retail sales for the United States. This report should yield crucial clues as to how the US consumer behaved during the all-important Christmas shopping period. Strong spending during that period could provide the economy with a substantial boost and will [..]

Technical Analysis – Oil, 4-hourly: holding above the 7-month low of 91.20

Posted on January 13, 2014 at 9:42 am GMT

[caption id="attachment_12463" align="alignnone" width="550"] (click to enlarge)[/caption] Oil has been dropping recently on expectations that the deal between Iran and six major powers will lead to increased supply of Iranian oil to the markets. Oil for short-term delivery fell to 91.24 on Thursday 9th January, which is a 7-month low. It should be pointed out however that the break was not convincing as there was not enough follow-through selling near an area that has also been tested 2 ½ months [..]

Asian Session – Dollar extends losses as US nonfarm payrolls disappoint

Posted on January 13, 2014 at 7:09 am GMT

The US dollar extended losses from Friday’s tumble following the dismal nonfarm payrolls which cast doubt on the Fed taper. The weak jobs number in December leads to speculation that the pace of tapering could possibly be a bit slower than expected going forward. A mere 74,000 jobs were created last month which was well short of at least 200,000 that most economists had expected. The dollar struggled against the yen and plunged to 103.24 in the Asian session, the [..]

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