News / Page 91

ECB raises growth and inflation outlook but says risks remain on downside

Posted on June 2, 2016 at 3:05 pm GMT

The European Central Bank met in Vienna today for its latest monetary policy meeting and as expected, kept interest rates and its asset purchase program unchanged. There were more details however on some of the policies announced in March but not yet implemented. The purchase of corporate bonds (corporate sector purchase program) will commence on June 8, while the new series of the targeted longer-term refinancing operations (TLTRO) will begin on June 22. The TLTRO program is aimed at boosting [..]

European Session – Euro falls after ECB; oil tumbles after OPEC fails to cap oil output

Posted on June 2, 2016 at 2:43 pm GMT

The early part of the European session was relatively quiet as markets geared up for the more important events later in the day that included the European Central Bank meeting and Draghi press conference, ADP payrolls, US jobless claims and the OPEC meeting. The euro fell after the ECB made only marginal upward adjustments to its inflation projections. The Bank kept its main interest rate unchanged in negative territory, as was widely expected. The euro started to fall during the [..]

Technical Analysis – NZDUSD finds resistance at 50-DMA after two-day rally

Posted on June 2, 2016 at 9:58 am GMT

NZDUSD has seen a partial reversal of the January-April uptrend that took prices from 0.6346 to 0.7053. It has now retraced 38.2% of this upleg, having rebounded from sharper losses that drove the pair below the 50% Fibonacci level. Prices have been capped by the 50-day moving average at around 0.6830 for the past two days as the upside momentum from earlier in the week has started to fade. RSI has already dipped back towards neutral at 50, while the [..]

Asian Session – Dollar slips despite positive indicators; euro firms ahead of ECB

Posted on June 2, 2016 at 7:53 am GMT

The US dollar was broadly lower against a basket of currencies on Thursday as a strong yen weighed on the greenback. The dollar index slipped to around 95.30 in Asian trading, extending yesterday’s losses. Positive business sentiment surveys out of the US on Wednesday failed to lift the dollar. The Fed’s latest Beige Book, which reports on regional economic conditions, was also not enough to convince traders that a June or July rate hike was a certainty. The Fed’s June [..]

Technical Analysis – EURGBP in descending channel, below 0.80

Posted on June 2, 2016 at 7:17 am GMT

EURGBP appears to be on a downward trajectory. The pair has been in a descending channel during the past two months, falling from a high of 0.8116 and breaking below the key 0.80 level and below the 50-day and 100-day moving averages. This brings a shift to the recent bullish bias from 0.6981 to 0.8116. There was an upward move in the past two days but prices stalled just below the 100-day moving average, which will likely restrict any upside [..]

European Session – Sterling tumbles to 2-week low on Brexit fears; dollar halts decline after upbeat ISM data

Posted on June 1, 2016 at 3:02 pm GMT

Sterling underperformed despite UK manufacturing PMI coming in better-than-expected. However, this upbeat data was overshadowed by Brexit concerns after the latest poll showed a shift towards voting to leave the European Union in the June 23 referendum. Two Guardian/ICM polls showed that the “Leave” camp had a 52-48 lead against the “Remain” camp. This was a shift from polls last week that indicated those favouring to stay in the EU were in the lead. The news led to a selloff [..]

Polls scare away pound bulls while aussie rebound fails at 73 cents

Posted on June 1, 2016 at 2:38 pm GMT

Pound scare The biggest mover of the past few sessions in the foreign exchange market has been the British pound. While polls had until recently been showing an increasing double-digit lead for the “remain” campaign, there was a big turnaround as the latest polls have actually reversed and are showing either a dead heat or the “leave” camp slightly ahead. For example, it was the first time that a telephone poll indicated that the “leave” camp was ahead of “remain”, [..]

Strong Australian economy casts doubt over further RBA easing

Posted on June 1, 2016 at 11:19 am GMT

Australia’s economy continued to power ahead in the first quarter of the year as GDP expanded by 1.1% over the quarter – the highest in four years. The figure beat expectations of 0.8% quarter-on-quarter growth and is up from 0.7% in the previous quarter, which itself was revised up from an earlier estimate of 0.6%. On a year-on-year basis, growth stood 3.1% higher than the first quarter in 2015. The main drivers of growth in the first three months of [..]

Asian Session – Aussie gains after strong GDP; Yen jumps on sales tax announcement

Posted on June 1, 2016 at 7:55 am GMT

The Australian dollar was lifted by better-than-expected GDP data today, as the Australian economy continued to outperform other advanced economies. Australian GDP growth in the first quarter was 1.1% quarter-on-quarter, beating forecasts of 0.8%. Annual growth in the first quarter accelerated to 3.1% and was helped by an upward revision to the previous quarter. The aussie jumped 0.8% against the dollar to hit a two-week high of 0.7298 as traders pared back expectations of an RBA rate cut. But it [..]

Technical Analysis – GBPUSD downside risk; 50-day MA supports

Posted on June 1, 2016 at 7:13 am GMT

GBPUSD is now forming a neutral bias after the bullish move from 1.4004 to 1.4768 stalled and the market is consolidating just above the 50% Fibonacci of this upleg from April to May. This Fibonacci level lies just below the key psychological 1.44 level at 1.4386. The high of 1.4768 is the extent of the bullish phase and the short term bias has shifted to neutral, and will remain so as long as the market remains above the 50% Fibonacci. [..]

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