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Gold trades marginally lower ahead of the US session

 

 

FXStreet (Mumbai) - Gold prices recovered intraday losses on weak European equities and weak US index futures. 

 

Gold now trades 0.06% lower at USD 1224.90/Oz levels, after having recovered from the low of USD /Oz hit earlier today. Prices recovered during the European session after the bearish Oil demand forecast from the International Energy Agency pushed the European stock markets lower. The German DAX is down 1.32%, while the Ftse is down 1.39%. Meanwhile, weakness in the European equities has pushed the US index futures into the negative territory. The S&P futures have weakened % at the time of writing. 

 

Furthermore, the falling US treasury yields are supporting Gold prices as well. The 10-yr Treasury yield in the US retreated 5.6 basis points to trade at 2.122%. Consequently, the US dollar index too, has declined 0.30% to trade at 88.32 levels. 

 

Gold Technical Levels

 

Gold has an immediate support located at 1221.18 (5-DMA), under which prices could test 1210.18 (10-DMA). Meanwhile, resistance is seen at 1233 and 1237 levels.   

 

 

 


 

 

Dec 12, 2014

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Gold trades marginally lower ahead of the US session

 

 

FXStreet (Mumbai) - Gold prices recovered intraday losses on weak European equities and weak US index futures. 

 

Gold now trades 0.06% lower at USD 1224.90/Oz levels, after having recovered from the low of USD /Oz hit earlier today. Prices recovered during the European session after the bearish Oil demand forecast from the International Energy Agency pushed the European stock markets lower. The German DAX is down 1.32%, while the Ftse is down 1.39%. Meanwhile, weakness in the European equities has pushed the US index futures into the negative territory. The S&P futures have weakened % at the time of writing. 

 

Furthermore, the falling US treasury yields are supporting Gold prices as well. The 10-yr Treasury yield in the US retreated 5.6 basis points to trade at 2.122%. Consequently, the US dollar index too, has declined 0.30% to trade at 88.32 levels. 

 

Gold Technical Levels

 

Gold has an immediate support located at 1221.18 (5-DMA), under which prices could test 1210.18 (10-DMA). Meanwhile, resistance is seen at 1233 and 1237 levels.   

 

 

 


 

 

Dec 12, 2014

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Nikkei ends the week lower ahead of Sunday’s elections

 

 

FXStreet (Mumbai) - The Japanese stocks rose today following modest gains in the US stocks and weakness in the Yen, although gains were not sufficient to push stocks higher on a weekly basis. 

 

The Nikkei index ended 0.66% higher at 17,371.58 levels, compared to the previous session’s close of 17,257.40 levels. However, the gains were not sufficient to avoid a weekly loss of 3.06%. The markets took heart from the Yen’s fall against the US dollar, although gains were capped since investors remained cautious ahead of the house of representative election on Sunday.

 

Among stocks, General contractors Taisei, Kajima and Shimizu enjoyed handsome gains on expectations that the LDP will promote public works spending post victory in the election. The weaker yen spurred buying of automaker Toyota and camera maker Canon. 

 

Meanwhile, falling crude prices punished the resource stocks like trading houses Mitsubishi and Mitsui as well as oil distributors JX Holdings and Cosmo Oil. Automaker Honda and electronics maker Sony were also downbeat.

 

Nikkei Technical Levels

 

The index has an immediate resistance located at 17,520.45 (Nov 14 high), above which gains could be extended to 18,030.50 (Dec 8 high). Meanwhile, support is seen at 17,127 (Nov 4 high) and 16,907.43 (Nov 17 low). 

 

 

 

 


 

 

Dec 12, 2014

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GBP/USD remains in bearish territory

 

 

FXStreet (Guatemala) - GBP/USD is trading at 1.5735, up 0.11% on the day, having posted a daily high at 1.5747 and low at 1.5695.

 

GBP/USD is up on the greenbacks weakness, lower US yields and sharp losses in equities all due to oil losses. The major has risen again and away from the supporting area of low 1.57’s, breaking up through the 1.5740 resistances and five-month downtrend. 

 

Above here, key resistance remains at 1.6184, which is the October high as noted by Karen Jones, chief analyst at Commerzbank who explained while below here the market remains bearish.

 

Next week is packed on the calendar and markets will be turning towards, UK CPI, UK MPC Minutes, UK Unemployment, US CPI, US FOMC and UK Retail Sales. 

 

 

 

 


 

 

Dec 12, 2014

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GBP/USD remains in bearish territory

 

 

FXStreet (Guatemala) - GBP/USD is trading at 1.5735, up 0.11% on the day, having posted a daily high at 1.5747 and low at 1.5695.

 

GBP/USD is up on the greenbacks weakness, lower US yields and sharp losses in equities all due to oil losses. The major has risen again and away from the supporting area of low 1.57’s, breaking up through the 1.5740 resistances and five-month downtrend. 

 

Above here, key resistance remains at 1.6184, which is the October high as noted by Karen Jones, chief analyst at Commerzbank who explained while below here the market remains bearish.

 

Next week is packed on the calendar and markets will be turning towards, UK CPI, UK MPC Minutes, UK Unemployment, US CPI, US FOMC and UK Retail Sales. 

 

 

 

 


 

 

Dec 12, 2014

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EUR/JPY fails to hold above 148.00

 

 

FXStreet (Córdoba) - EUR/JPY jumped after the beginning of the American session as the yen weakened across the board and climbed to 148.16 reaching the strongest level since Wednesday. 

 

But the pair failed to hold above 148.00 as the USD/JPY retreated from 119.10 to 118.65 while EUR/USD remained steady above 1.2450, near daily highs. 

 

EUR/JPY unable to erase losses

 

Despite rising for the second day in a row on Friday the euro is headed toward a weekly decline versus the yen ahead of Japanese elections as currently trades at 147.80.

 

The pair is about to post the first weekly loss after rising consecutively during the previous eight weeks. 

 

 

 

 


 

 

Dec 12, 2014

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EUR/USD hits fresh highs above 1.2500

 

 

FXStreet (Córdoba) - EUR/USD finally broke above the 1.25 mark to hit its highest level in nearly 3 weeks, supported by better-than-expected European PMIs and pushed even higher following upbeat ZEW German survey and trade data.

 

After 3 days of infructuous attempts, EUR/USD gathered enough momentum to pierce the 1.2500 resistance area and stretched to a high of 1.2527, last seen Nov 26, extending its recovery from this year low of 1.2246. At time of writing, EUR/USD is trading at 1.2520, recording a 0.64% gain on Tuesday.

 

EUR/USD levels to watch

 

As for technical levels, EUR/USD could find immediate resistances at 1.2530/35 (Nov 26 high/50-day SMA) and 1.2575 (Nov 20 high). On the flip side, supports are now seen at 1.2414 (Dec 15 low), 1.2400 (psychological level) and 1.2370 (Dec 11 low). 

 

 

 

 


 

 

Dec 16, 2014

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German Economic Sentiment rises to highest since May 2014

 

 

FXStreet (Mumbai) - The Zew indicator of Economic sentiment for Germany rose to 34.9 in December, highest since May 2014. The indicator has moved well above its long-term average of 24.4 points. 

 

The assessment of the current situation in Germany also improved to 10.0 points in November. Both the data for Germany easily surpassed the median estimates. Meanwhile, the Zew data also showed the sentiment indicator for the Eurozone increased to a reading of 31.8 points in December, while the indicator for the current situation in the Eurozone decreased in December to minus 62.8 points. 

 

As per ZEW President, Professor Clemens Fuest, “Confidence in the German economy seems to be slowly returning among the financial market experts surveyed by ZEW. This increase is related to favorable economic conditions such as the weak euro and the low crude oil price. The recently published German export figures already show a positive trend. However, we should be aware that the current optimism is fuelled by factors that might change even over the short term.” 

 

 

 

 


 

 

Dec 16, 2014

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DAX climbs higher on Upbeat German data

 

 

FXStreet (Mumbai) - Germany’s benchmark index, the DAX, traded higher today, reversing losses from the previous session after Germany’s manufacturing sector as well as overall economic conditions improved in December.

 

Currently, the DAX 30 trades at 9397.80 levels, up 0.71%, compared to Friday’s close of 9334.01. The DAX gained strength after upbeat Germany’s PMI readings and ZEW Economic Sentiment Surveys pointed towards a stabilizing German economy. Germany's ZEW survey, the key measure of investors' sentiment, hit 31.8 points this month, a jump from November's 11.5, against market estimates of 20 points increase. The German flash PMI showed an expansion to 51.2 points after November's 49.5.

 

The index is trading with a positive market breadth, an advance decline ratio of 19:11. Among the major gainers, shares in Continental AG, Deutsche Telekom AG and ThyssenKrupp AG are up 0.70% to 1.55%. While, Commerzbank AG and RWE AG lost 0.50% to 0.78%.

 

DAX Technical Levels

 

The index has an immediate resistance at 9461.53 (Nov 18 High), above which gains could be extended to 9520 (Oct 1 High) levels. Meanwhile, support is seen at 9323.52 (Nov 18 Low) and 9268.63 (Nov 6 Low) levels. 

 

 

 

 


 

 

Dec 16, 2014

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AUD/USD hits 2-day highs

 

 

FXStreet (Córdoba) - The US dollar weakened in the currency market during the European session and pushed AUD/USD to the upside, amid better-than-expected data from the Eurozone. 

 

The pair climbed to 0.8274, reaching the highest price since last Friday and currently trades at 0.8250/55, 45 pips above yesterday’s closing price. 

 

AUD/USD rebounds from 0.8198

 

During the Asian session the aussie reached a fresh multi-year low versus the US dollar after the release of the Chinese HSBC PMI Manufacturing index that dropped in December, according to the preliminary reading to 49.5, from 50.0; reaching the lowest level in seven months. The pair bottomed at 0.8198 but rebounded and then gained bullish momentum after breaking above 0.8235.  

 

 

 

 


 

 

Dec 16, 2014

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Gold stuck at USD 1200

 

 

FXStreet (Mumbai) - The price of the yellow metal appears stuck at USD 1200 after it declined from the high of USD 1204 hit few minutes earlier. 

 

Gold now trades 0.65% lower at USD 119.80/Oz levels. The yellow metal recovered from the low of USD 119.80/Oz levels hit during the Asian session after the HSBC PMI data showed a contraction in the Chinese manufacturing activity. The metal also received support from the weakness in the Asian equity markets. 

 

However, the gains have been halted around USD 1200 during the European session since the HSBC data showed a rebound in the German manufacturing activity along with a rise in the German economic Sentiment to May 2014 highs in December. The Major European stock markets have moved higher which has reduced the demand for Gold. The Dax currently trades 1.005 higher, while the Ftse is up 1.21%. Meanwhile, the US dollar index has extended losses during the European session to trade 0.52% lower at 88.26 levels. 

 

Gold Technical Levels

 

The metal has an immediate resistance at the daily high of 1204, above which prices face another resistance at 1208 levels. Meanwhile, support is seen at 1198.40 (10-DMA) and 1190.00 levels.  

 

 

 

 


 

 

Dec 16, 2014

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GBP/JPY trades near 1-month low levels

 

 

FXStreet (Mumbai) - The pound lost ground against the Japanese counterpart and fell close to one month low levels after Japanese yen regained strength versus US dollar.

 

Currently, the GBP/JPY pair trades at 183.05, down -0.65% on the day, after having hit day’s low of 181.66 levels couple of hours ago. The GBP/JPY pair remains pressured as the Japanese yen continues its rise against the US dollar, taking USD/JPY to 116.58 levels, down -1.06% on the day. Adding to the downside in GBP/JPY, the pound remained pressured on sharp deceleration seen in UK CPI inflation numbers.

 

GBP/JPY Technical Levels 

 

To the upside, the next resistance is located at 183.60 (10-day SMA) and above which it could extend gains to 183.98 (20-day SMA) levels. To the downside, immediate support might be located at 182.46 (Nov 19 Low) and below that at 181.04 (Nov 17 Low) levels. 

 

 

 


 

 

Dec 16, 2014

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NZD/USD gains, breaks above 0.78 handle

 

 

FXStreet (Mumbai) - The New Zealand dollar advanced against its US counterpart, snapping three days of declines as US dollar bulls took a back seat ahead of Fed’s two-day monetary policy commencing shortly. 

 

The NZD/USD pair trades now at 0.7782 levels, up 0.49% on the day, after posting a fresh daily high of 0.7801 levels. The kiwi climbed higher against the greenback today on broad based US dollar sell-off against major currencies as markets now shift their focus towards US macro data due for release later in the day. The US dollar index, which measures the greenback against a basket of six major currencies, continued its decline from the strongest level since March 2009 to trade at 88.04, down by -0.76%, on the day.


NZD/USD Technical Levels

 

To the upside, the next resistance is located at 0.7810 (Dec 3 High), above which it could extend gains to 0.7850 (Dec 12 High) levels. To the downside immediate support might be located at 0.7755 (Dec 14 Low), below that at 0.7727 (Dec 4 Low) levels. 

 

 

 


 

 

Dec 16, 2014

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EUR/USD reaches 4-week highs

 

 

FXStreet (Córdoba) - EUR/USD managed to break above 1.2500 and climbed to fresh 4-week highs in a volatile session where the dollar rallies against emerging market currencies but falls against majors.

 

Better-than-expected Eurozone data acted as trigger, sending EUR/USD to a high of 1.2569, last seen November 20 and the euro has managed to hold onto gains despite the cautious tone among financial markets. At time of writing, EUR/USD is trading at 1.2545, recording a 0.92% gain Tuesday.

 

Investors also remain wary as tomorrow the Fed concludes its 2-day monetary policy meeting, with focus on the 'considerable time' description of the period the bank considers it’ll be appropriate to keep historical low rates.

 

EUR/USD levels to watch

 

Immediate resistances are now seen at 1.2575 (Nov 20 high) and 1.2600 (psychological level/Nov 19 high), while supports could be found at 1.2414 (Dec 15 low), 1.2400 (psychological level) and 1.2370 (Dec 11 low). 

 

 

 


 

 

Dec 16, 2014

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UK Inflation forecast for December 2014 – RBS

 

 

FXStreet (Barcelona) - Ross Walker of RBS forecasts the UK inflation readings for December 2014, anticipating CPI to fall to 0.6% from November’s 1.0%.

 

Key Quotes

 

“CPI inflation fell to a 12-year low of 1.0% in Nov from 1.3% in Oct, significantly below City forecasts (consensus & RBS: 1.2%).”

 

“CPI inflation is forecast to fall to 0.6% in December, with the core CPI inflation rate edging up slightly to 1.3%.”

 

“RPI inflation is forecast to fall to 1.6% in Dec from 2.0% in Nov.”

 

“Medium-term inflation forecasts lowered significantly: CPI <1% for almost all of 2015 and below target throughout 2016.” 

 


 

 

Dec 16, 2014

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FOMC expected to change its language in its statement – FXStreet

 

 

FXStreet (Barcelona) - FXStreet Analyst, Craig Drake, notes that high expectations revolve around Fed’s Wednesday meeting for a shift in its language, with the phrase “considerable time” anticipated to be dropped out of Fed’s communication.


Key Quotes

 

“The big expectation for the conclusion of the Federal Reserve’s Federal Open Market Committee meeting is for a shift in language. The FOMC is expected to drop the phrase “for considerable time” in reference to maintaining near-zero rates in favour of an emphasis on patience.”

 

“As part of the Fed’s reliance on forward guidance (something ushered in by Janet Yellen when deputy chairman of the Fed), the Fed has repeated the statement that “it likely will be appropriate to maintain the 0 to 0.25 percent target rate for the federal funds rate for a considerable time” after the end of its asset purchase programme – with the “considerable time” emphasis something that has been in place since 2012.”

 

“90-day Eurodollar implied probabilities of a Fed funds rate hike is being priced around mid-2015 in line with conservative consensus expectations from the majority of the big bank forecasts, however, we may see this being pushed later into the third quarter of 2015, with the Fed seemingly in no hurry to abandon its current ultra-loose monetary conditions despite an official Fed forecast of 2.8 percent GDP growth in 2015.”

 

“The Fed is also expected to downplay declines in inflation in view of recent sharp declines in oil prices” 

 


 

 

Dec 16, 2014

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EUR/JPY hovers around Technical support

 

 

FXStreet (Mumbai) - The single currency has recovered part of its losses against the Japanese Yen ahead of the US session to trade above a key technical support of 145.71 on the daily charts. 

 

The EUR/JPY pair now trades 0.75% lower at 145.76 levels, after having recovered from a low of 144.97 hit earlier today. Moreover, the EUR/USD pair gained sharply to 1.2530 levels during the last couple of hours, while the USD/JPY recovered from the low of 115.58 levels, to trade at 116.22 levels at the time of writing. The weakness in the US treasury yields helped the single currency gain strength against the greenback, while the Yen saw a technical correction against the US dollar. 

 

EUR/JPY Technical Levels

 

The pair has an immediate support located at 145.71 (Dec, 27 high), below which losses could be extended to 145.00 levels. Meanwhile, resistance is seen at 146.26 and 146.85 levels. 

 

 


 

 

Dec 16, 2014

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GBP/CHF recovers above 1.5100

 

 

FXStreet (Córdoba) - GBP/CHF is rising for the second day in a row after, recovering after falling on Tuesday to 1.4993, the lowest price in three weeks. Recently the pair printed a fresh at 1.5168. 

 

The pound gained momentum in the market on Wednesday after UK employment data and Bank of England’s minutes and so far is the best performer among European currencies. 

 

Yesterday, on a volatile session GBP/CHF dropped sharply from 1.5100 to 1.4990 but then rebounded and erased losses to finish the day above 1.5100.

 

GBP/CHF technical levels

 

To the downside support might be located at 1.5060, 1.5010 and 1.4990 (Dec 16 low). On the opposite direction, resistance could lie at 1.5165 (daily high) and above here at 1.5190 (Dec 16 high) and 1.5245. 

 

 


 

 

Dec 17, 2014

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JPY is soft as risk aversion shifts and exports disappoint – Scotiabank

 

 

FXStreet (Barcelona) - JPY trades weak on a shift in risk aversion and disappointing exports and imports, with fluctuations in risk appetite being the largest near term drivers for the USD/JPY pair, notes Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank.

 

Key Quotes

 

“JPY is soft today, having retraced half of yesterday’s strength on a shift in risk appetite. Japan’s trade balance was narrower than expected but both exports and imports disappointed, with exports up just 4.9%y/y and imports falling –1.07%y/y. The lower oil price is a net benefit to the economic backdrop, even as it could weigh on inflation on the near-term.”

 

“However for USDJPY the current fluctuations in risk appetite have proven the largest near-term drivers. Over time we expect USDJPY to be driven higher by the fundamental backdrop; however in the near-term USDJPY is likely still vulnerable to risk aversion induced downside pressures.”

 

“USDJPY short‐term technicals: mixed—technicals are conflicting, suggesting that USDJPY has not developed a trend. Accordingly, the technical outlook is somewhat clouded.”

 

“Support lies at the recent low of 115.57; while resistance comes in at yesterday’s open of 117.82 followed by 118.20.” 

 

 


 

 

Dec 17, 2014

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FTSE gains almost 1%

 

 

FXStreet (Mumbai) - The London’s Ftse index opened higher following on the increased probability of a delay in the interest rate hike in the US, although part of the gains have been erased. 

 

The Ftse traded 0.89% higher at 6391 levels at the time of writing, compared to the previous session’s close of 6336.48 levels. The index had opened higher at 6418.50 levels, before declining to the current level of 6391. The index breadth is positive with an advance-decline ratio of 88:11. The Ftse Oil Equipment Services and Distributions index gained 4.75%, while the Mining index is up 1.42%. All other sectors are trading in green, except the Telecom index, which has weakened 1.14%. 

 

Among stocks, Petrofac and Tullow Oil have gained 5.64% and 4.43% respectively. Meanwhile, Cocacola and United Utilities have weakened 2.33% and 1.5% respectively. The index hit a low of 6358 levels before recovering on a stronger-than-expected UK retail sales data for November. 

 

FTSE Technical Levels

 

The index has an immediate resistance at 6446, above which gains could be extended to 6544 levels. Meanwhile, support is seen at 6361 and 6294 levels. 

 

 

 


 

 

Dec 18, 2014

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Oil rallies 3%, Sell-off seen as overdone

 

 

FXStreet (Mumbai) - Both Crude oil benchmarks climbed higher, extending gains seen in the Asian trading as the massive sell-off seen in the past week was seen as excessive.

 

Currently, Brent oil trades at USD 63.26/ barrel and WTI crude oil trades at USD 58.54/ barrel, both gaining about 3% on the day. Oil prices gained strength today also as Saudi Oil Minister Ali al-Naimi reiterated that it's difficult if not impossible for OPEC or Saudi Arabia to cut production and added "the market is passing through the temporary problem," which was caused mainly by a global economic slowdown.

 

Moreover, Russian President Vladimir Putin’s speech too added to the rally in oil prices. Putin said the Russian economy will rebound and the plummeting currency will stabilize while predicting the current crisis could last two years at the most. As he pointed out the economic performance will depend on the external factors and the recovery may come sooner should these change for the better.

 

Crude Oil Technical Levels

 

Brent oil has an immediate resistance which stands at 63.94 (Dec 12 High), above which gains could be extended to 65.37 (Dec 11 High) levels. Meanwhile, support is seen at 62.27 (5-day SMA), from here losses could be extended to 61.45 (20-day SMA) levels. 

 

 

 


 

 

Dec 18, 2014

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Canadian dollar gains on Oil price rebound

 

 

FXStreet (Mumbai) - The US dollar erased moderate gains from the Asian session and fell against the Canadian counterpart as traders now focus towards a set of US economic data due for release in the US trading.

 

The USD/CAD pair slid -0.49% on the day to trade at 1.1574, as against previous session close of 1.1631 levels. The Canadian dollar gained against the greenback during the European session as oil prices rallied to 3% which provided further impetus to the loonie, oil being Canada’s top export. The loonie also remains supported before US unemployment Claims and Philly Fed Manufacturing Index which are expected to come in negative than market forecasts. The US dollar also remains subdued as markets digest FOMC announcement. 

 

USD/CAD Levels to consider

 

To the upside, the next resistance is located at 1.1601 (5-day SMA) and above which it could extend gains to 1.1619 (10-day SMA) levels. To the downside immediate support might be located at 1.1546 (200-day SMA) and below that at 1.15 levels. 

 

 

 


 

 

Dec 18, 2014

OctaFX.Com News Updates

 

 

 


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