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Technical Analysis – Gold struggling to hold above 1330 on increased downside pressure

Posted on August 8, 2016 at 9:28 am GMT

Gold prices extended Friday’s sharp losses today to hit an intra-day low at just above 1330. The commodity continues to face downward pressure with the stochastics trending down and falling below 50, while prices today slipped below the 20-day moving average. Further losses are therefore possible in the near term with support likely to come at around the 1325 area. Below that, the 50-day moving average comes into focus at 1310. A drop below the 50-day moving average would shift [..]

Asian Session – Dollar extends post-NFP gains; China trade data disappoints again

Posted on August 8, 2016 at 7:59 am GMT

Risk appetite continued to rise on Monday following Friday’s stronger-than-expected non-farm payrolls report, which helped improve the outlook for the US economy. The dollar extended its gains into today’s Asian session, while Asian equities rallied to one-year highs on the back of the risk-on mood. One of the biggest gainers was the Nikkei 225 index in Tokyo, which closed up 2.4%. However, shares in China were up by a smaller 0.9% as disappointing trade data weighed on the Chinese market. [..]

European Session – Dollar rallies on good nonfarm payrolls; gold tumbles

Posted on August 5, 2016 at 3:11 pm GMT

The European session was mostly quiet ahead of the all-important nonfarm payrolls report. Trading in most major currency pairs was subdued until the data which surprised to the upside and sent the dollar on a strong rally. The July jobs report showed that 255,000 jobs were created which was well above expectations for a 180,000 print, and there was an upward revision to the June figure to 292,000 from 287,000. This was the second consecutive robust jobs report which also [..]

US non-farm payrolls and earnings beat estimates; dollar jumps

Posted on August 5, 2016 at 3:04 pm GMT

It was another strong month for US jobs in July as non-farm payrolls beat estimates for a second month, underlining the view that the labor market remains solid despite a blip in May. Non-farm payrolls rose by 255k in July, sharply above estimates of 180k. In an additional boost, June’s original estimate of 287k was revised higher to 292k and May’s figure was revised back up by 13k. July’s jobs report was positive across the board with gains made in [..]

Week Ahead – RBNZ meets amid rate cut expectations; China data also eyed

Posted on August 5, 2016 at 12:34 pm GMT

The Reserve Bank of New Zealand is expected to follow the RBA in cutting rates next week as New Zealand’s inflation outlook deteriorates further. Industrial output numbers from China, the Eurozone and the UK will be the main data of the week, while there will be no shortage of indicators to watch out of China. Eurozone industrial output to rebound June was a poor month for industrial production across much of the Eurozone but a sizeable rebound is expected in [..]

Asian Session – Dollar subdued ahead of NFP; pound stabilizes after post-BoE fall

Posted on August 5, 2016 at 7:55 am GMT

The dollar lost some ground in Asian trading on Friday as investors turned cautious ahead of the US jobs report later today. Non-farm payrolls will likely have eased in July from the strong surge seen in June but are still expected to come in at a healthy pace of 180k. A solid jobs report is seen as keeping the door open for a rate hike later in the year, which would support the dollar. But in the meantime, the greenback [..]

Technical Analysis – EURUSD holds above 200dma but downside pressure exists

Posted on August 5, 2016 at 7:23 am GMT

The rally from 1.0951 to 1.1233 stopped dead at the 100-day moving average and prices turned back down. EURUSD is currently trading around 1.1140 in the early European session on Friday. Momentum weakened as the RSI reversed at 60 following a strong rise from below 50. The indicator is flat now around the 50 level which suggests prices will likely consolidate in the near term. But the stochastic is falling and is indicating there is downside pressure in the market. [..]

European Session – Gold jumps, pound falls after BoE cuts rates to 9-year low and expands QE

Posted on August 4, 2016 at 2:33 pm GMT

The Bank of England dominated the market’s focus today as there were few other developments to note. Sterling came under heavy selling pressure on the announcement that the BoE made its first interest rate cut in seven years and added more stimulus. The market was satisfied with the more aggressive stance by the Bank. While the 25 basis point rate cut to a record low 0.25% was widely expected, markets were split on whether the BoE would expand its quantitative easing program, [..]

Bank of England cuts rates and restarts QE; signals further easing

Posted on August 4, 2016 at 2:31 pm GMT

The Bank of England cut interest rates for the first time since March 2009 at its policy meeting today, reducing borrowing costs in the UK from 0.50% to a new record low of 0.25%. The move had been fully priced in by the markets but the Bank surprised by overdelivering with its stimulus package. In addition to the 0.25bps rate cut, the BoE announced a combination of measures aimed at lifting demand in the economy, which the Bank sees as [..]

Technical Analysis – GBPJPY consolidates but bearish bias persists

Posted on August 4, 2016 at 10:04 am GMT

GBPJPY consolidated for a fourth day on Thursday as it stayed confined between the 50% and 61.8% Fibonacci levels. The 61.8% Fibonacci retracement level of the July upleg from 128.75 to 143.22 is providing immediate support at around 134.25, while the 50% Fibonacci level is the nearest resistance at 136. The momentum indicators remain in bearish territory with RSI flatlining below 50 but the stochastics could be about to break out of oversold level above 20 as the %K line [..]

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