OctaFX_Farid Posted April 20, 2015 Author Share Posted April 20, 2015 USD/CNY further downside lies ahead – Danske Bank FXStreet (Edinburgh) - Senior Analyst at Danske Bank Flemming Nielsen sees the pair grinding lower in the medium term. Key Quotes “It is still our view that China will not allow the CNY to depreciate substantially despite data suggesting that growth continued to slow in early 2015”. “In our view, CNY remains well supported by an increasing trade balance surplus in the wake of a sharp decline in import prices and China’s relatively closed capital account, which limits capital outflow”. “China’s ambition to have CNY included in the SDR later in 2015 also suggests that China will probably not rock the boat ahead of a decision”. “We still expect a moderate depreciation of CNY within the current trading band and we have revised our forecasts for USD/CNY lower for 1M and 3M in light of faster than expected appreciation of the CNY over the past month”. OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page Apr 20,2015 OctaFX.Com News Updates Trade with OctaFX - the Most Reliable Forex broker! Quote Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted April 20, 2015 Author Share Posted April 20, 2015 DXY down from 98.00 FXStreet (Edinburgh) - The US Dollar Index, which gauges the greenback vs. its main competitors, is now deflating from session highs just above the 98.00 handle. DXY keeps gains The index remains on track to extend the recovery from last week’s deep pullback to the 97.00 area, although today’s upside momentum run out of legs above the 98.00 mark. Nothing relevant in terms of data releases in the US economy, with only the Chicago Fed National Activity Index dropping to -0.42 for the month of March. In the meantime, Greek jitters appear to be the main driver behind the risk-off trade, as markets shifter their focus on the Eurogroup meeting on Friday. DXY relevant levels The index is now advancing 0.24% at 97.75 with the next hurdle at 98.66 (high Mar.31) ahead of 99.18 (high Apr.9) and then 99.36 (high Apr.15). On the other hand, a breakdown of 97.00 (low Apr.17) would target 96.93 (low Apr.7) en route to 96.33 (low Apr.6). OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page Apr 20,2015 OctaFX.Com News Updates Trade with OctaFX - the Most Reliable Forex broker! Quote Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted April 21, 2015 Author Share Posted April 21, 2015 USD/JPY: Gains capped by weak Treasury yields FXStreet (Mumbai) - The USD/JPY pair has pared gains to trade at 119.34 levels, after having hit a high of 119.78 levels. The weakness in the US treasury yields is supporting the Japanese Yen. Yen gains as 10-year treasury yield falls The 10-year yield in the US fell three basis points to 1.867%, while the 30-year yield declined more than three basis points to 2.538%. Consequently, the Japanese Yen, which tracks Treasury prices, recovered losses against the USD. Moreover, the safe haven assets are showing signs of strength ahead of the US session on concerns over the lack of an agreement on economic reforms for bailout funds between Greece and its creditors. The pair could extend the drop if the treasury yields continue to slide ahead in the data. USD/JPY Technical Levels The immediate support is located at 119.26 (100-DMA), under which losses could be extended to the previous session’s low of 118.52. On the flip side, a break above 119.42 (5-DMA) could drive the pair higher to its 50-DMA located at 119.91. OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page Apr 21,2015 OctaFX.Com News Updates Trade with OctaFX - the Most Reliable Forex broker! Quote Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted April 21, 2015 Author Share Posted April 21, 2015 EUR/HUF back to lows near 297.00 FXStreet (Edinburgh) - The Hungarian forint is now depreciating further vs. the single currency on Tuesday, dragging EUR/HUF to re-visit session lows near 297.00. EUR/HUF weaker post-NBH The cross saw its downside renewed after the NBH surprised markets by lowering its refi rate to 1.80% from 1.95% in today’s meeting. Recall that market consensus was expecting the central bank to remain on hold. The cross is retreating for the second consecutive session so far, trading in 5-day lows near the 297.00 handle. EUR/HUF key levels At the moment the cross is losing 0.27% at 297.25 with the next support at 296.74 (low Jan.2 2014) ahead of 295.29 (low Apr.15) and then 295.17 (low Dec.31 2013). On the upside, a break above 300.49 (high Apr.6) would expose 301.98 (high Apr.20) and finally 302.64 (high Apr.17). OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page Apr 21,2015 OctaFX.Com News Updates Trade with OctaFX - the Most Reliable Forex broker! Quote Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted April 21, 2015 Author Share Posted April 21, 2015 Grexit risk being priced in – MP FXStreet (Barcelona) - Dean Popplewell, Director of Currency Analysis at MarketPulse, comments that markets believe the ECB is preparing to subtly apply further pressure on Greece banks, while on the other side a Grexit risk is being priced in as uncertainty related to a EU-Greece agreement increases. Key Quotes “Interested parties are trying to get Greece to conform to creditors demands. There are currently two avenues of pressures on Greece to force them into fulfilling said demands. There is firstly via the banking system, and second via the liquidity situation of the government. By the latter, the Greek government has more control. The markets saw that yesterday when the Greek government issued various decrees for local government cash balance to be deposited in the Central Bank for government use.” “It’s the funding of the banking system that Greece has no control over. That’s dependent on the ECB’s role as “lender of last resort” through the use of ELA (Emergency Liquidity Assistance).” “The market now believes that ECB staff is preparing a proposal to subtly apply further pressure. They could do this by increasing haircuts on Greek bank collateral offered for ELA.” “The Eurogroup require a Greek reaction, as a member they are required to fulfill all protocols and not just back away from responsibility. Applying subtle pressure hopefully will garner a positive reaction. To date it has not and time is running out as the uncertainty over how Greece and its creditors will come to an agreement has led the market to continue to price in a rising risk of Grexit.” “The Greek yield curve continues to invert (short yields rise faster than long would suggest default).” “The question and answer yet to be discussed in detail is if a default and exit does become a reality, will the ECB’s QE limit contagion?” OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page Apr 21,2015 OctaFX.Com News Updates Trade with OctaFX - the Most Reliable Forex broker! Quote Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted April 21, 2015 Author Share Posted April 21, 2015 EUR/USD struggling to regain 1.0700 – FXStreet FXStreet (Barcelona) - EUR/USD has recovered from the daily low at 1.0659, but requires a break above 1.0715 to confirm additional gains, explains Valeria Bednarik, Chief Analyst at FXStreet. Key Quotes “The EUR/USD pair recovered from a daily low set at 1.0659 in the European morning, following market comments about the ECB studying a way to limit financial aid to Greece.” “In Germany, the ZEW survey for April showed that the local Economic Sentiment fell for the first time since October 2014, down to 53.3 from previous 54.8. In the EZ however, Economic Sentiment improved above expected in the same month. There are no relevant fundamental readings scheduled for the US, with the market then probably continue trading on sentiment.” “Short term, the 1 hour chart shows that the price stands below the 38.2% retracement of its latest bearish run at 1.0715, the immediate resistance, whilst the 20 SMA heads lower around it. In the same chart, the technical indicators are bouncing from their oversold levels but remain below their mid-lines, which suggest some follow through above the mentioned level is required to confirm additional advances.” “In the 4 hours chart the Momentum indicator heads lower below 100 whilst RSI indicator stands flat around 48.” “Support levels: 1.0680 1.0640 1.0590” “Resistance levels: 1.0715 1.0745 1.0775” OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page Apr 21,2015 OctaFX.Com News Updates Trade with OctaFX - the Most Reliable Forex broker! Quote Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted April 21, 2015 Author Share Posted April 21, 2015 EUR/CHF has met the 1.0255/50 target – Commerzbank FXStreet (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank, notes EUR/CHF failing to hold the 1.0255/60 zone might lead to further losses towards 1.00. Key Quotes “EUR/CHF has met the 1.0255/50 target. We note the TD perfected set up on the daily chart and would recommend if not already done so, exiting shorts. The 1.0250/55 zone represents the January 16 high and the 50% retracement.” “We expect this to hold the initial test, but if not, this is also regarded as the break down point to 1.00.” “A downward bias will be maintained while EUR/CHF trades below the resistance line at 1.0556.” OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page Apr 21,2015 OctaFX.Com News Updates Trade with OctaFX - the Most Reliable Forex broker! Quote Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted April 21, 2015 Author Share Posted April 21, 2015 EUR/JPY likely to test 126 in the near-term – FXStreet FXStreet (Barcelona) - FXStreet Editor and Analyst, Dhwani Mehta, sees risk for EUR/JPY being tilted to the downside, anticipating a move lower towards 126 on a break below 126.80. Key Quotes “Technically, on the daily chart, EUR/JPY continues to trade in a short-term downtrend channel, with cross finding good support at 126 levels. On the same chart, the cross remains below all its moving averages indicating persistent underlying weakness.” “Moreover, the pair broke below the crucial 10-DMA located at 127.70, which triggered a fresh sell-off, knocking-off EUR/JPY to session lows at 127.46.” “Currently, the cross continues to trade around the 10-DMA support-turned resistance indicating more room for declines. The daily RSI at sub 40 remains in the bear range and aims lower, also supporting the case for further downside in the making.” “Greece crisis is likely to be the dominating theme in the week ahead with the shared currency expected to remain pressured across the board. This may support the case for EUR/JPY to retest of 126 levels in the near term.” “The pair is likely to find a good support at 126.80, below which EUR bears may take over, driving EUR/JPY to 126 handle.” “However, a failure to breach 126.80 levels, the pair may rebound to 128.70 resistance zone.” OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page Apr 21,2015 OctaFX.Com News Updates Trade with OctaFX - the Most Reliable Forex broker! Quote Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted April 21, 2015 Author Share Posted April 21, 2015 RBA might hold rates steady, go long AUD/USD – Growth Aces FXStreet (Barcelona) - The Growth Aces Research Team expects RBA to maintain a neutral bias in May, which is against market expectations for a rate cut, and might support AUD gains. Key Quotes “The RBA cut interest rates to a record low of 2.25% in February, but the central bank surprised many analysts by skipping further moves at its policy meetings in March and April. The next RBA meeting is scheduled for May 5 and financial markets expect a rate cut. Futures markets imply around a 50% chance of a quarter-point easing in May, rising to nearly 90% in June.” “In our opinion the RBA may surprise the market and keep rates on hold which will support the AUD.” “There were no major changes in the RBA language but the AUD/USD fell significantly after Stevens’ comments. Moreover, investors expect soft CPI figures on Wednesday (1:30 GMT) adding to pressure on the AUD.” “We got long on AUD/USD at 0.7730 and AUD/JPY at 91.80. The longs could be in trouble in case of weaker CPI reading. The nearest support levels is 0.7673, daily low on April 16.” “Resistance: 0.7736 (55-dma), 0.7798 (hourly high Apr 20), 0.7844 (high Apr 20)” “Support: 0.7673 (low Apr 16), 0.7600 (psychological level), 0.7573 (low Apr 15)” “AUD/USD: long at 0.7730, target 0.7950, stop-loss 0.7620” “AUD/JPY: long at 91.80, target 94.00, stop-loss 90.80” OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page Apr 21,2015 OctaFX.Com News Updates Trade with OctaFX - the Most Reliable Forex broker! Quote Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted April 21, 2015 Author Share Posted April 21, 2015 USD/JPY hits a fresh 1-week high FXStreet (Córdoba) - The US dollar strengthened across the board after Wall Street opening bell and pushed to the upside the USD/JPY pair that rose from 119.40 to 119.83, hitting the strongest level since April 14. Currently trades at 119.65, up 0.40% for the day, headed toward the second daily gain in row as it continues to recover from 118.53, the 3-week low that reached yesterday. The yen dropped across the board during the last two hours as US stocks opened mixed. The Dow Jones index was falling 0.13% while the Nasdaq was rising 0.47%. USD/JPY short term technical levels To the upside, immediate resistance lies at 119.80/85 (daily high), 120.00 and 120.40/45. On the opposite direction, support might now be located at 119.50, 119.30 (European session low) and 119.10/15 (daily low). OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page Apr 21,2015 OctaFX.Com News Updates Trade with OctaFX - the Most Reliable Forex broker! Quote Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted April 21, 2015 Author Share Posted April 21, 2015 GBP/USD looking bearish – Varengold FXStreet (Barcelona) - The Varengold Bank Research Team gives the technical outlook for GBP/USD using daily charts. Key Quotes “.. the GBPUSD has reached a significant resistance, after seven days of gains in a row. This level coincides with the top side of an uptrend channel in the RSI, anticipating a bearish movement, where the previous lows seem the support to take into consideration. Above the current price, the mentioned 1.4980 resistance looks tough to be broken at first.” “Support Levels around 1.4568” “Resistance Levels around 1.4980” OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page Apr 21,2015 OctaFX.Com News Updates Trade with OctaFX - the Most Reliable Forex broker! Quote Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted April 21, 2015 Author Share Posted April 21, 2015 Greece crisis: Riga summit expected to be a non-event – TDS FXStreet (Barcelona) - The TD Securities Team comments on the recent developments concerning Greece, and further notes that this week’s Eurogroup summit is likely to be a non-event in delivering a EU-Greece agreement. Key Quotes “Headlines confirmed our suspicions that the market and Greek leaders have been too complacent in thinking the ECB would continue to provide ELA funding uninterrupted. There is reportedly an increasing minority of ECB Governors opposed to Greek ELA, and while it requires a two-thirds vote to turn it off, the staff has now prepared various options for increasing the haircuts on ELA lending.” “With the Greek government backtracking on pension and public sector employment reform yesterday, it still seems this week’s Summit in Riga will be a non-event in delivering a deal and May 11-12 is now set as the potential make-or-break deadline with the next Eurogroup and IMF repayment due then.” OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page Apr 21,2015 OctaFX.Com News Updates Trade with OctaFX - the Most Reliable Forex broker! Quote Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted April 21, 2015 Author Share Posted April 21, 2015 Greek default without ‘Grexit’ would be too negative for EUR – SG FXStreet (Barcelona) - Kit Juckes of Societe Generale shares the key developments surrounding Greece – default risks, Grexit talks and the possible impact on the single currency. Key Quotes “The Greek crisis was ignored by the FX market last week as peripheral spreads widened and the Euro rallied. This morning, it's the reason for the Euro to be softer and the dollar to be rallying again.” “The reasons given for day-to-day gyrations of EUR/USD within its broad 1.0450-1.1050 range need to be taken with a pinch of salt but....a Greek default without ‘Grexit', might be the single most negative outcome for the Euro, and ECB Vice-President Vitor Constancio, pointedly observed that default doesn't automatically imply exit.” “Meanwhile, as the government scrambles around for cash, there is much talk of Greece introducing a parallel currency.” OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page Apr 21,2015 OctaFX.Com News Updates Trade with OctaFX - the Most Reliable Forex broker! Quote Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted April 22, 2015 Author Share Posted April 22, 2015 USD/CAD found support at 1.2210 FXStreet (Edinburgh) - The Canadian dollar is now shedding part of the initial gains vs. the greenback, pushing USD/CAD back to the 1.2235/40 band. USD/CAD eyes on the US docket Spot found some support in the 1.2210 area during the European morning, ahead of the US data releases due later: Existing Home Sales (5.05 M exp. in March), Housing Price Index (0.7% Feb) and the weekly report on crude oil inventories by EIA, expected to increase by 2.375 million barrels in the week ended on April 17th. After bottoming out in fresh multi-month lows just below the 1.2100 handle last week, the pair gained steam and recovered the 1.2200 mark and beyond, although gains seem to be limited by yesterday’s tops near 1.2300. USD/CAD significant levels At the moment the pair is losing 0.30% at 1.2244 and a breach of 1.2215 (low Apr.21) would expose 1.2180 (low Apr.20) and finally 1.2100 (psychological level). On the other hand, the immediate resistance aligns at 1.2296 (high Apr.21) followed by 1.2300 (psychological level) and then 1.2328 (high Apr.16). OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page Apr 22,2015 OctaFX.Com News Updates Trade with OctaFX - the Most Reliable Forex broker! Quote Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted April 22, 2015 Author Share Posted April 22, 2015 Germany: still the main beneficiaries of ECB’s QE – ING FXStreet (Barcelona) - Carsten Brzeski of ING, sees the recent ZEW index release as a confirmation for their outlook for German economy, with ECB’s QE and fundamentals expected to power the economy ahead. Key Quotes “Yesterday’s ZEW index had something for everyone, both pessimists and optimists. At face value, the drop in the headline figure to 53.3, from 54.8 in March, could be regarded as a sign of caution and maybe even new uncertainty stemming from the Greek crisis. At second glance, however, it is very hard to find any sense of pessimism in yesterday’s ZEW reading.” “In fact, the current assessment component of the ZEW index reached its highest level since July 2011. With the strong increase, it does not really come as a surprise that the headline index saw a small decline. In fact, when it comes to the ZEW index, everything is relative.” “As the starting position is much stronger than in March, the small drop in the headline figure is another sign of optimism, rather than new pessimism.” “Moreover, judging from the combination of the current assessment component and the outlook, the ZEW index has never ever painted a rosier scenario for the German economy than yesterday.” “Over the last two years, the ZEW index has returned as an interesting and more reliable indicator for future economic growth. While between 2010 and 2012, the fundamental and structural strength of the German economy prevailed, it is now cyclical factors like dropping oil prices, a weakening euro and the ECB’s QE, which are the most important growth drivers.” “Against this background, ZEW index confirms our positive take on the German economy. As a main beneficiary of the ECB’s QE programme, supported by sound domestic fundamentals, the German economy should power ahead.” “Only the benign neglect of the possible fallout of the – once again – escalating Greek crisis calls for caution. The situation is clearly more dangerous and volatile than financial market participants seem to believe.” OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page Apr 22,2015 OctaFX.Com News Updates Trade with OctaFX - the Most Reliable Forex broker! Quote Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted April 22, 2015 Author Share Posted April 22, 2015 Credit Suisse: Positioning for Greece and price of uncertainty on the euro – eFXnews FXStreet (Barcelona) - The Strategy team at Credit Suisse, shares the possible trade setups for EUR/USD for different scenarios of Greece risks and euro uncertainty, as noted by eFXnews. Key Quotes “It is probably not true that the EUR has ignored Greek risks. Without needing to price in this issue, EUR would likely have lower implied volatility, less skew in favor of EUR puts and arguably a higher spot price. EURUSD might be challenging the top of its recent roughly 1.0450 – 1.1050 range rather than languishing near the middle.” “Market participants who think Greek risks can subside within three months should be looking at the possibility of a meaningful EUR pop higher over that time frame.” “Market participants who like us think the underlying trend in EUR is lower across the board due to negative euro area core rates – but also think Greek risks can diminish in the next three months – should look to exploit the skew surface by buying EUR put spreads or EUR puts with reverse knock outs (RKOs). We have introduced both varieties into our trade idea portfolios in the past two weeks.” “Market players looking for a default outcome in Greece in the next three months should be aware that to some extent this is already in the price. Of course both implied volatility and skew in EUR can rise further, much as Greek bond yields and European equities implied volatility can too. But it is hard to argue that out-of-the-money EUR puts are a uniquely cheap way of playing for this outcome.” This content has been provided under specific arrangement with eFXnews. OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page Apr 22,2015 OctaFX.Com News Updates Trade with OctaFX - the Most Reliable Forex broker! Quote Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted April 22, 2015 Author Share Posted April 22, 2015 USD/JPY stance remains neutral very near term– Westpac FXStreet (Edinburgh) - In the view of strategists at Westpac, the outlook for USD/JPY remains neutral for the upcoming sessions, although dips should be regarded as buying opportunities. Key Quotes “We maintain a neutral bias for ¥ and EUR/JPY for yet another week”. “However, we remain of the view that USD/JPY remains a buy on dips and target the 117/119 band”. “Markets will start to turn the focus towards the BoJ meeting April 30”. “The fact that it comes the day after the FOMC outcome means we should expect to see some reasonable volatility over that last week of April”. “We stay neutral and wait for dips to buy”. “Range trading since February has proven frustrating. ST/MT momentum factors are relatively neutral, keeping directional bias low”. OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page Apr 22,2015 OctaFX.Com News Updates Trade with OctaFX - the Most Reliable Forex broker! Quote Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted April 22, 2015 Author Share Posted April 22, 2015 EUR/USD likely to see additional declines below 1.0715 – FXStreet FXStreet (Barcelona) - With EUR/USD weakening due to the SNB fuelled slump, Valeria Bednarik, Chief Analyst at FXStreet, expects a break below 1.0715 to lead to further losses towards 1.0630 for the pair. Key Quotes “News that Greece has cash enough to face its upcoming maturities and won't have financial issues until late June, has brought relief to the common currency that advanced up to 1.0800. Sellers however surged around the critical figure, sending the pair back lower ahead of the US opening. Market's mood has found also support from better-than-expected inflation readings in Australia, released during the past Asian session, sending the dollar generally lower across the board.” “In Europe, Italy released its monthly inflation readings, slightly above expectations and also supportive of a EUR rally.” “Nevertheless, and despite broad dollar weakness, the EUR retraces sharply alongside with the CHF, on news the SNB announced pension funds can be subject to negative rates.” “Technically, the 1 hour chart shows that the price broke below its 20 and 100 SMAs, now the immediate support level around 1.0745, whilst the technical indicators are aiming higher and breaking below their mid-lines.” “In the 4 hours chart, a mild negative tone prevails, as the technical indicators head lower below their mid-lines, whilst the price stands below its moving averages.” “Additional declines below 1.0715 should lead to a stronger decline, eyeing 1.0630 as a probable daily low.” “Support levels: 1.0715 1.0680 1.0630” “Resistance levels: 1.0770 1.0810 1.0850” OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page Apr 22,2015 OctaFX.Com News Updates Trade with OctaFX - the Most Reliable Forex broker! Quote Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted April 22, 2015 Author Share Posted April 22, 2015 SNB announces fewer exemptions from negative interest rates FXStreet (Córdoba) - The Swiss National Bank (SNB) said it has considerably reduced the group of sight deposit account holders that are exempt from negative interest. The SNB completed its review and announced on Wednesday negative interest will now also apply to the so-called sight deposit accounts held at the SNB by enterprises associated with the Confederation, the Federal Pension Fund, and the SNB's pension fund. The affected account holders will be accorded the minimum exemption threshold of CHF 10 million, to which negative interest does not apply. In addition, the accounts of the cantons of Geneva and Zurich, as well as that of the City of Zurich, will be wound up. The SNB imposes a charge of 0.75% on sight deposit account balances at the central bank. OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page Apr 22,2015 OctaFX.Com News Updates Trade with OctaFX - the Most Reliable Forex broker! Quote Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted April 22, 2015 Author Share Posted April 22, 2015 US March existing home sales rise strongly - is the soft patch over? – ING FXStreet (Barcelona) - Previewing the US March existing home sales data, Rob Carnell of ING, comments that it won’t be wise to declare this as an end to the soft patch of the US economy, but a stronger USD and higher yields might be expected from here. Key Quotes “US existing home sales for March rose to a 5.19m annual rate, a good deal above the 5.03m expected and one of the strongest results this side of the financial crisis (November 2009 saw a 5.44m rate, and July 2013 a 5.31m rate). Whilst this is noisy data, with the volatile condo segment growing at an 11.1% rate against a still strong 6.1% rise in single family homes, this was still a decent result.” “But with housing transactions a slow moving part of the economy, it is probably not wise to declare the US soft-patch over just yet, though there were also some encouraging increases in median house prices, which should help to support consumer confidence and spending in the coming months.” “That said, with next week’s FOMC meeting closing in, and limited additional data in advance of this, we see little likelihood that this result is enough to warrant a hint at a policy change in June from the accompanying April FOMC text.” “The market response to this data should be a stronger USD and higher bond yields and implied Fed rates. But with this result fairly marginal for the Fed decision, we don’t think any market response will be substantial, or necessarily long-lived.” OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page Apr 22,2015 OctaFX.Com News Updates Trade with OctaFX - the Most Reliable Forex broker! Quote Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted April 22, 2015 Author Share Posted April 22, 2015 EUR/GBP drops to 1-month lows FXStreet (Córdoba) - EUR/GBP weakened after the release of the Bank of England minutes and accelerated the decline after the Swiss National Bank reduced exemptions on negative rates. The pair bottomed at 0.7120, level last seen in March 17. EUR/GBP breaks key support Earlier it traded above 0.7200 momentarily but failed to hold, lost momentum and weakened sharply after breaking the 0.7160/70 support area, that capped the decline during the last five trading days. From the lows, EUR/GBP bounced slightly to the upside and currently trades at 0.7140, down 50 pips from yesterday's closing price. The euro is having the worst day against the pound and is approaching 2015 lows that lie at 0.7014. OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page Apr 22,2015 OctaFX.Com News Updates Trade with OctaFX - the Most Reliable Forex broker! Quote Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted April 22, 2015 Author Share Posted April 22, 2015 EUR/JPY no longer a barometer of risk-on/risk-off sentiment - FXStreet FXStreet (Barcelona) - There has been a shift in the characteristics of EUR/JPY as a currency which reflected risk-on/risk-off sentiments, largely due to the transition in EUR from a growth to a funding currency, explains Omkar Godbole, FXStreet Editor and Analyst. Key Quotes “EUR is a funding currency, but not a safe haven – The Euro is no longer a growth currency. With the Refi rate at 0.05% and the deposit rate at -0.20% it is now a funding currency.” “The ECB’s QE led drop in German long term bond yields to near zero levels means the investors have to look out for other high yielding assets outside the Eurozone. This is nothing but Draghi’s portfolio adjustment effect. However, the search for yield is high during risk-on rallies. Hence, the EUR is likely to be sold now during risk-on rallies in the markets.” “However, that does not mean the shared currency would be preferred in times of risk-off rallies. Though a funding currency, it is still not a safe haven asset.” “With Greece issue and debt problems the currency is likely to be a last resort - below Treasuries, Gold, Japanese Yen and Swiss franc in times of risk-off.” “Consequently, the pair does not represent a risk-on/risk-off as accurately as it did earlier.… the strong direct correlation does not exist now.” OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page Apr 22,2015 OctaFX.Com News Updates Trade with OctaFX - the Most Reliable Forex broker! Quote Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted April 23, 2015 Author Share Posted April 23, 2015 USD/JPY retreats as US new home sales slump /b] FXStreet (Córdoba) - USD/JPY retreated from the 120.00 area as the dollar weakened after the latest string of US data showed new home sales dropped sharply in March while Markit manufacturing PMI missed expectations. US new home sales fell 11.4% to an annual rate of 481,000 in March, pulling back from a 7-year high and below expectations of 513,000. Meanwhile, the Markit manufacturing PMI fell to 54.2 in April from 55.7 in March. The dollar weakened and fell to a session low of 119.84 against the yen, but remained well within its daily range. At time of writing, USD/JPY is trading at 119.88, virtually unchanged on the day. OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page Apr 23,2015 OctaFX.Com News Updates Trade with OctaFX - the Most Reliable Forex broker! Quote Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted April 23, 2015 Author Share Posted April 23, 2015 GBP/USD technicals warn of upside risk – Scotiabank FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, notes short-term technicals for GBP/USD remain bullish and warn of building upside risk, with next resistance at 1.5166. Key Quotes “GBP is down 0.2% into the NA session, having failed yesterday to close above its 50‐day MA at 1.5030. Retail sales was disappointing, rising just 0.2%m/m ex auto and falling –0.5%m/m including autos. The soft release is not enough to shift the course of growth in the UK, but does provide reason to be cautious.” “Our base case is that GBP is vulnerable leading into the election uncertainty but that it closes the year having stabilized against the USD and gained further ground against EUR.” “GBPUSD short‐term technicals: bullish—technicals are warning of upside GBP risk, with the MACD moving averages, candle chart and recent trend all suggestive of upside risk. Support lies at yesterday’s open of 1.4926, with resistance at the March 18th high of 1.5166.” OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page Apr 23,2015 OctaFX.Com News Updates Trade with OctaFX - the Most Reliable Forex broker! Quote Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted April 23, 2015 Author Share Posted April 23, 2015 EUR/USD correction an excellent sell opportunity – BAML FXStreet (Barcelona) - MacNeil Curry, CFA, CMT, Technical Strategist at BofA-Merrill Lynch, sees EUR/USD correction heading into a triangular formation, possibly a sell signal for parity. Key Quotes “The correction in €/$ continues to unfold. However, the correction is turning increasingly Triangular (a range defined by two contracting trendlines). This is one of our favorite patterns and should provide an excellent opportunity to go short for a move toward 1.0000 once the pattern completes. For now, stay patient.” “Gains should not exceed the 55d at 1.0967, while a break of 1.1053 points to a larger correction than anticipated.” OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page Apr 23,2015 OctaFX.Com News Updates Trade with OctaFX - the Most Reliable Forex broker! Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.