News / Page 274

European Session – Euro rises as focus shifts to ECB’s stress tests

Posted on October 24, 2014 at 1:47 pm GMT

Currency markets took on a cautious tone ahead of key risk events over the weekend and next week. On Sunday, the European Central Bank’s stress tests on 130 Eurozone banks will be released. Uncertainty around the finances of some of the Eurozone’s banks dampened sentiment on the euro. Investors didn’t pay too much attention to Germany’s Gfk consumer confidence survey today despite a surprising turn higher in October. If a substantial number of Eurozone banks fail the stress tests and [..]

Forex News – Week ahead: Fed meeting towers over other data releases and events

Posted on October 24, 2014 at 10:12 am GMT

Central bank meetings in the US, New Zealand and Japan are expected to be the highlights of next week as economic data releases may take a second seat. The German IFO survey, Japanese inflation numbers and advance US 3rd quarter GDP will be key. One interesting statistic for the Eurozone will be the release of the German IFO business confidence survey for October. In light of the forecast-beating Markit PMI survey of the past week, the IFO is expected to [..]

Technical Analysis – USDCAD in rising channel

Posted on October 24, 2014 at 7:12 am GMT

USDCAD is in an uptrend, making consistent higher highs and higher lows. It remains in its rising channel on the daily chart and is currently testing the lower channel line ahead of key support at 1.1200. Resistance stands at 1.1300 and a break above this level would strengthen the bullish momentum to target the 5-year high of 1.1384 hit on October 15. RSI remains in bullish territory although it has flattened out suggesting some consolidation in the near-term. However, the [..]

Asian Session – Yen curbs losses following ebola scare

Posted on October 24, 2014 at 6:36 am GMT

News that a case of ebola infection had been discovered in New York City disrupted the positive mood evident in markets during the US session. As ebola spreads, there are fears it could prove much more damaging than first thought. The new case was a New York-based doctor who recently returned from West Africa. Because of the news there was some profit-taking in risk assets and dollar / yen. US stocks staged a powerful rally the previous day, with the [..]

European Session – Euro up after PMIs, pound hurt by retail sales

Posted on October 23, 2014 at 1:23 pm GMT

Market sentiment for the euro was more upbeat after releases of more encouraging-than- expected PMIs from the Eurozone. Markit’s Composite Flash PMI rose to 52.2 in October which was above forecasts. Analysts expected a drop to 51.7 from September’s reading of 52.0. The data helped the euro rebound from a 1-week low of 1.2613 to a session high of 1.2675. Also helping the single currency was strong German flash PMI data, which showed manufacturing in Europe’s largest economy moved into [..]

Forex News – Eurozone manufacturing continues to expand, helps euro to contain losses

Posted on October 23, 2014 at 12:11 pm GMT

News that Markit PMI business confidence numbers were better-than-expected provided a much-needed boost for the weakening euro today. The flash (preliminary) composite index for the Eurozone rose to 52.2 in October compared to 52 the previous month and beat analyst expectations it was going to dip to 51.5. This went against the image that has been gaining ground in the markets that the Eurozone was slowing down so much that recession was just around the corner. With respect to the [..]

Technical Analysis – GBPUSD maintain downside bias to retest 1.5873

Posted on October 23, 2014 at 7:43 am GMT

GBPUSD maintains its bias to the downside. The market has been making lower highs and lower lows. After bouncing from 1.5873 prices were unable to move beyond 50% of the downleg from the September 19 high of 1.6523 to the October 15 low of 1.5873. This 50% Fibonacci level at 1.6197 is now strong resistance. Prices are currently finding support at the 23.6% Fibonacci at 1.6024. Failure to hold at this level would open the way towards a retest of [..]

Asian Session – Dollar maintains CPI gains ahead of Eurozone PMIs

Posted on October 23, 2014 at 6:59 am GMT

The US dollar remained strong, pushing euro / dollar down to the 1.2630 1-week low, as a forecast beating US inflation number yesterday was expected to contrast with weaker Eurozone PMI indicators later in the day. Euro / dollar subsequently recovered slightly to 1.2645. The dollar also climbed to as high as 107.33 against the Japanese yen. The main news of the Asian session was that Chinese manufacturing PMI from HSBC / Markit for October climbed to 50.4 from 50.2 [..]

European Session – Sterling down on dovish BoE minutes, euro below 1.27

Posted on October 22, 2014 at 1:49 pm GMT

The euro remained heavy today, weighed by the market belief that the European Central Bank will begin corporate bond buying, despite it denying such reports. The euro broke below the key technical level of 1.2700 today and slid to as low as 1.2658 against the dollar. Focus will now turn to Eurozone preliminary PMIs on Thursday. Sterling fell after a dovish Bank of England minutes today. The minutes of the October policy meeting showed MPC members were firmly against raising [..]

Forex News – Australian inflation likely to keep RBA on the sidelines for now

Posted on October 22, 2014 at 12:48 pm GMT

Australian inflation for the third quarter was announced today and it showed a slowdown to 2.3% from the previous quarter’s 3.0% inflation peak. 2.3% was also the inflation rate expected by economists. Australian inflation has moved around a fair amount during the past 5 years, with a peak of 3.5% and a trough of 1.2%. One adjusted measure of Australian inflation was actually lower than expectations. The so-called “trimmed mean CPI” calculated by the country’s central bank fell to 2.5% [..]

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