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AUD/USD dips back below 0.7800

 


FXStreet (Córdoba) - AUD/USD failed to sustain gains above 0.7800 and pulled back at the beginning of the American session, trimming intraday gains.

 

The Australian dollar reached a daily high of 0.7823 versus the greenback, but lacked follow-through and retreated toward the 0.7780 area in recent dealings. At time of writing, the pair is trading at 0.7790, still up 0.52% on the day. 

 

AUD/USD remains vulnerable with the downside exposed in the long term amid divergent policies from the RBA and the Fed, with the Australian bank cutting rates to a record low of 2.25% on Tuesday, even when AUD/USD managed to take back post-decision losses. 

 

 

 

 

 

 


 

 

Feb 05,2015

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GBP/USD upside favoured – FXStreet

 

 

 

FXStreet (Barcelona) - According to Valeria Bednarik, Chief Analyst at FXStreet, GBP/USD is now favouring the upside, having made a fresh high at 1.5313, with the immediate support now at 1.5250 levels.

 

Key Quotes

 

“The GBP/USD pair reached a fresh 4-week high at 1.5313 this Thursday..”

 

“Earlier on the day, the Bank of England had its monthly economic meeting, leaving its policy unchanged as expected, and triggering no actual moves in the pair.”

 

“The strong advance could be attributed partially to recent up beating data in the UK and the recovery in the oil prices, but part of it was due to the break of technical levels.”

 

“The 1 hour chart shows that indicators are getting exhausted in overbought territory, losing their early strength while the 20 SMA maintains a strong bullish slope below the current price.”

 

“In the 4 hours chart, technical indicators maintain a strong upward momentum, despite entering overbought territory, while the price has broken above its 200 EMA, now the immediate support at 1.5250, for the first time in 8 months.”

 

“The pair is now favored to the upside, although ahead of US employment figures next Friday, some consolidative range could be expected.” 

 

 

 

 

 


 

 

Feb 05,2015

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Rising inventories keep Copper in red

 

 

 

FXStreet (Mumbai) - Copper prices on Comex trades slightly lower today, extending losses from the previous session, however was set for its biggest weekly gain in more than two years ahead of US NFP data.

 

LME stocks at 13-year High


The red metal trades at 2.588 levels, having previously posted day’s low at 2.582 and day’s high at 2.615 levels. Copper prices remains pressured as the metal’s inventories rose yet another day, adding to signs of a glut in a market that continues to grip the copper markets.

 

Inventories at LME warehouse jumped 34500 metric tons, or 13%, to 284,600 tons yesterday, the highest in almost a year and sits at 13-year high.

 

Copper prices are expected to continue its downtrend as less demand from China, the world's biggest user of copper, is leading to excess supplies as economic activity cools-off across the all the sectors. Moreover, manufacturers and other buyers often slow purchases of the metal this time of year before the Lunar New Year holidays.

 

Copper Technical Levels

 

Copper prices have an immediate resistance located at 2.60, above which gains could be extended to 2.618 levels. Meanwhile, support is seen at 2.52 levels, below which it can extend losses to 2.50 levels. 

 

 

 

 

 

 


 

 

Feb 06,2015

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AUD/USD steady above 0.7800

 

 

 

FXStreet (Córdoba) - AUD/USD rose during the Asian session and peaked at 0.7858, reaching the highest price since January 29 and then pulled back modestly. During the last hours it has remained steady trading around 0.7830, on a quiet session as traders await the US employment report. 

 

The aussie is headed toward a weekly gain of around a hundred pips against the US dollar, as it recovers from multi-year lows that reached on Tuesday at 0.7625.

 

RBA and politics

 

During the Asian session the Reserve Bank of Australia downgraded its growth and inflation forecast in its monetary policy statement. Political uncertainty jumped in Australia after Luke Simpkins, announced that he would be moving a motion to have the leadership declared open, that could removed from office the current prime minister Tony Abbott, as early as next week. 

 

 

 

 

 

 

 


 

 

Feb 06,2015

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NZD/USD clings on to 0.74 handle ahead of US NFP

 

 

 

FXStreet (Mumbai) - NZD/USD shaved-off Aussie backed gains and traded flat as traders now eagerly await US labour market report due for release in the US session.

 

Struggles above 0.7400

 

Currently, the NZD/USD traded flat at 0.7405, wiping out previous gains on the back of solid gains in the Aussie. The kiwi lost ground as the US dollar strengthened versus the major currencies before the release of robust US jobs data. 

 

The US dollar index, measuring the relative strength of the greenback versus six major currencies advanced close to fresh daily highs at 93.92 levels, recording a 0.21% gain on the day. 

 

NZD/USD Technical Levels

 

To the upside, the next resistance is located at 0.7439 and above which it could extend gains to 0.7454 levels. To the downside, immediate support might be located at 0.7340 levels and below that at 0.7300 levels 

 

 

 

 

 

 

 


 

 

Feb 06,2015

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Natural gas recovers from 2-1/2 year lows

 

 

 

FXStreet (Mumbai) - Natural Gas prices on NYMEX rebounded today after falling to fresh two and a half year lows in the US last session amid abundant supplies as reflected by the Energy Information Administration (EIA) data.

 

Trades above USD 2.60/mmBtu

 

The futures currently trade 0.52% higher at USD 2.614/mmBtu. Prices hit a 2-1/2 year low of USD 2.578/mmBtu in the previous session after EIA showed stockpiles fell less than expected last week. Inventories sit at 2.4 trillion cubic feet, up 24% from a year ago and just 1.2% below the five-year average. The rebound in prices is seen on a short-covering rally after the recent slump in prices.

 

However, the markets now bet on forecasts of near-normal weather which may continue to drag natural gas prices down.

 

Natural Gas Technical Levels 

 

The immediate support is seen at 2.575 (Aug 2012 low), under which losses could be extended to 2.408 (Sept 2009 low). Meanwhile, resistance is seen at 2.63 and 2.69 levels

 

 

 

 

 

 

 


 

 

Feb 06,2015

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Chinese economic growth could decelerate in H1 2015 – DB

 

 

 

FXStreet (Edinburgh) - In the view of economists at Deutsche Bank, the Chinese economy could expand at a slower pace into the first quarter of the present year.


Key Quotes

 

“Growth momentum remains weak as property investment growth continues to slow”. 

 

“We expect growth to trend down in Q4 2014 and H1 2015. In Q1 2015 GDP growth may drop to 6.8% yoy”.

 

“The policy easing cycle has started. We expect the government to cut benchmark interest rates further by 25bp in Q2 and another 25bp in Q3 2015 and cut the RRR by a cumulative 100bps by mid- 2015 to stabilize the economy”.

 

“We expect growth to pick up slightly in H2 2015, and full year growth to reach 7%”. 

 

 

 

 

 

 

 


 

 

Feb 06,2015

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GBP/USD drops near 1.5200

 

 

 

FXStreet (Edinburgh) - After a brief dip to the vicinity of the 1.5200 handle, GBP/USD recovered the 1.5220 area although it remains in the red territory.

 

GBP/USD eroding gains

 

Spot is giving away part of last week’s important upside above the 1.5200 mark, bolstered by the steadiness around the BoE and a positive PMI from the Services sector in the UK. However, the pair will remain in the spotlight ahead of the critical BoE’s Quarterly Inflation Report due on Thursday and less relevant industrial and manufacturing releases on Tuesday.

 

From the positioning space, speculative GBP net shorts were trimmed a tad in the week ended on February 3rd, pointing to an extension of the consolidative pattern seen in the last weeks.

 

GBP/USD relevant levels

 

The pair is now losing 0.11% at 1.5219 and a breakdown of 1.5200 (psychological level) would open the door to 1.5170 (low Feb.5) and then 1.5169 (10-d MA). On the flip side, the next hurdle lines up at 1.5295 (40-d MA) followed by 1.5353 (high Feb.6) and then 1.5355 (high Jan.5). 

 

 

 

 


 

 

 


 

 

Feb 06,2015

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SEB: USD/JPY should turn lower soon – eFXnews

 

 

FXStreet (Barcelona) - The eFXnews Team shares SEB’s intraday technical outlook for USD/JPY, with SEB using Elliott wave analysis to predict a move lower for the pair.

 

Key Quotes

 

“If the pair continues to follow the textbook then we should see wave d ending between 119.23 and 119.76 and thereafter falling back in wave e (targeting a maximum 116.66 move but probably less than so given that e-waves has a tendency of being weaker than the preceding wave ad).”

 

This content has been provided under specific arrangement with eFXnews. 

 

 

 

 


 

 

 


 

 

Feb 06,2015

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Russia to refrain from FX intervention – TradeTheNews

 

 

FXStreet (Barcelona) - The TradeTheNews Team shares CBR’s Governor’s comments that the Bank of Russia would let markets define an exchange rate and stay from any FX intervention until RUB threatens stability.

 

Key Quotes

 

“Russia Central Bank (CBR) Gov Nabiullina reiterated to let market define exchange rate and would not impose capital controls; Rate hike was not inevitable on CPI.”

 

“She reiterated view that inflation to peak in Q2.”

 

“Bank of Russia buys gold to provide ruble liquidity and would not intervene in FX unless the RUB currency threatened stability. Rate outlook depended on risks to economy and prices.”  

 

 

 

 


 

 

 


 

 

Feb 09,2015

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EUR/AUD falls to fresh lows, fast approaching 200-DMA

 

 

FXStreet (Mumbai) - The shared currency erased previous gains and edged lower versus the Australian dollar as the Euro trades volatile amid escalating Greece worries, while the Aussie rebounds from China data back slump.

 

Hovers above 1.4480 levels

 

Currently, the EUR/AUD cross trades at 1.4487 levels, losing -0.18% on the day, close to fresh daily highs posted at 1.4480 levels few minutes ago. The cross traded lower largely on Aussie strength which continues its recovery after a slump in Chinese imports dragged the pair lower in the Asian session. The cross remains pressured as market participants await this week's Euro group meeting and the European Union summit that may ease the Greek situation

 

At the moment, the AUD/USD pair trades at 0.7809, up 0.13% on the day. While EUR/USD trades flat at 1.1312 levels.

 

EUR/AUD Technical Levels

 

The pair has an immediate resistance at 1.4550 levels, above which gains could be extended to 1.4610 levels. On the flip side, support is seen at 1.4470 levels, from here it to 1.4420 levels. 

 

 

 

 

 


 

 

 


 

 

Feb 09,2015

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More easing expected in China, growth to tick lover – Deutsche Bank

 

 

FXStreet (Edinburgh) - Economists at the German lender Deutsche Bank expect the Chinese growth to slow its pace in H1 and the PBoC to ease further in the upcoming periods.

 

Key Quotes

 

“The RRR cut is broadly in line with our expectation, though it happened one month earlier than we expected”.

 

“We reiterate our view that the economic growth will surprise on the downside in H1. We cut our GDP forecast for Q1 to 6.8% on January 5 (consensus 7.2%), as the economy faces a "double whammy" due to property slowdown and a fiscal slide”.

 

“We expect more easing measures to come. We continue to expect another RRR cut of 50bp in Q2. We also continue to expect two interest rate cuts, but we revise our call on timing, and expect the two cuts to happen in March and Q2, instead of Q2 and Q3”.

 

“The RRR cut likely releases liquidity of RMB640bn into the bank sector. We think the impact on the real economy is positive but it is not enough to stabilize the economy, as it helps to raise loan supply but loan demand may remain weak”.

 

“We expect the fiscal stance to loosen in coming months, with central government fiscal spending picking up and quasi-fiscal spending through policy banks rising. If such fiscal policy loosening does not materialize, we see downside risks to our GDP forecast of 7% for 2015”.  

 

 

 

 

 


 

 

 


 

 

Feb 09,2015

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OPEC cuts non-OPEC oil supply forecast

 

 

FXStreet (Mumbai) - The Organization of Petroleum Exporting Countries (OPEC) lowered its estimate for non-OPEC supply growth in 2015 as US drillers are expected to pump less oil after the collapse in oil price. 

 

The group lowered its estimate for non-OPEC supply growth by about 400,000 barrels a day, led by a reduction of 130,000 a day in the US. Supply estimates for Colombia, Canada and Yemen were also trimmed. “The main factors for the lower growth prediction in 2015 are price expectations, a declining number of active rigs in North America, a decrease in drilling permits in the US and a reduction in the 2015 spending plans of international oil companies,” OPEC’s Vienna-based research department said in its monthly market report.

 

US supply estimates

 

The supply from the US will increase 820,000 barrels a day in 2015 to 13.64 million a day, which is the half of the gain recorded in 2014. The estimate for total non-OPEC supply growth in 2015 was cut by 420,000 to 850,000 a day. 

 

The group expects the Global oil demand will increase by 1.17 million barrels a day, or 1.3%, in 2015 to 92.32 million barrels a day  

 

 

 

 

 


 

 

 


 

 

Feb 09,2015

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IMM Net Speculators’ Positioning - Rabobank

 

 


FXStreet (Barcelona) - The Rabobank Team reviews the IMM Net Speculators’ positioning data as at 03 February 2014, noting that EUR and AUD net shorts increased while JPY, CHF and GBP shorts edged lower, with USD long positions consolidating near its highs.

 

Key Quotes 

 

“Long USD positions consolidated at their current very high levels in the approach to last week’s US January labour report.”

 

“Meanwhile EUR shorts increased even further though they are still below their June 2012 highs. When the SNB stepped away from its EUR/CHF 1.20 floor in mid-January one large EUR buyer was removed from the market. In addition, ECB QE confirmation and Greek political concerns have undermined the EUR.“

 

“Net JPY shorts dropped for a third week and are now substantially below last month’s highs. Geopolitical worries and concerns over world growth have tempered the bears and increased demand for the yen as a safe haven.”

 

“Net GBP shorts edged lower. Pre-election uncertainty remains a negative sterling factor. However, signs that UK consumption is being lifted by lower food and energy prices could lend a little support as could the fact that UK assets still offer some yield.”

 

“AUD net shorts increased to their highest level since Jan 2013 after the RBA cut interest rates. Net CAD rose again, oil prices remain a dominating factor.”

 

“CHF net shorts dropped again following last month’s SNB’s surprise policy decision.” 

 

 

 

 

 

 


 

 

 


 

 

Feb 09,2015

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Oil prices still the core driver of CAD near-term – Scotiabank

 

 

FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, comments that CAD is up, digesting stronger oil prices and a slightly improved global growth outlook.

 

Key Quotes

 

“CAD is up, but has traded in a relatively narrow range during the Asian and European sessions.”

 

“Oil prices are up, flirting with a break above the 50‐day MA, which would mark an important turn in oil prices and CAD.”

 

“Correlations between CAD and oil remain high; however on short term metrics they are well off their highs. The rolling 30‐day correlation between oil and CAD has dropped down to 0.44, the lowest level in almost three months. As oil has rallied over 20% from its lows, CAD is up just 2.5%, in part reflecting ongoing uncertainty in where oil prices will ultimately settle.”

 

“We continue to see oil prices as one of the core drivers of near‐term CAD.”

 

“Employment data was disappointing in the details for Canada and warns of an uneven backdrop. This week in Canada the focus will be on housing data, starting today with housing starts; followed by manufacturing data to be released on Friday.”

 

“USDCAD short‐term technicals: mixed—USDCAD has shifted back from its highs and the MACD has shifted to a sell signal; however other studies have not turned and the candlestick pattern reflects some indecision with large intraday moves, simply retraced the following day.”

 

“Support lies at the recent low of 1.2352 and resistance lies at the recent high of 1.2644.” 

 

 

 

 

 

 

 


 

 

 


 

 

Feb 09,2015

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AUD/USD shrugs off Chinese data

 


FXStreet (Córdoba) - The Australian dollar shrugged off Chinese trade data and managed to recover from lows during the last hours, climbing back above the 0.7800 level against the greenback and filling the weekly opening gap.

 

AUD/USD bounced off a low of 0.7747 and rose more than 70 pips through the 0.78 mark, to hit a daily high of 0.7821 in recent dealings. At time of writing, the pair is trading at 0.7810, 0.64% above its opening price.


AUD/USD levels to watch

 

As for technical levels, if AUD/USD breaks above 0.7820, next resistances are seen at 0.7850 (Feb 3 high) and 0.7875 (Feb 6 high). On the flip side, supports could be found at 0.7747 (daily low) and 0.7733 (Feb 5 low). 

 

 

 

 

 

 

 

 


 

 

 


 

 

Feb 09,2015

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Technical outlook for treasuries – RBS

 

 

 

 

FXStreet (Barcelona) - Analysts at RBS comment on the bond market and give the technical outlook for 2s, 5s and 10s treasuries.


Key Quotes

 

“Treasuries have rebounded along with Bunds overnight as Greek exit fears persist along with worries about China (trade data was weaker than expected) and Ukraine developments.”

 

“Greek 3yrs yield ~21.5% this morning, up 340bp on the day."

 

“Our overnight US rates flows saw better buying on balance with overseas real$ accounts buying 5's through 10's against selling in 30yrs.”

 

“Overnight inter-dealer Treasury volume (4pm to 6am) was 160% of the 10-day average volume for the overnight session.”

 

“2s (0.624%)– Next major support doesn't emerge until ~0.80% where we found buyers back in the spring of 2011. Resistance seen at 0.40% where we'd close a gap left behind in late October. Daily momentum is bearish.” 

 

“5s (1.44%)– Next major support comes in at 1.80% and just above. Nearby resistance lines up at ~1.155%. Daily momentum is bearish.”

 

“10s (1.90%)–Next major resistance comes in at ~1.60%, the May 2013 'lows'. Next support comes in ~2.40% with major support at 2.66% after that. Daily momentum is bearish.” 

 

 

 

 

 


 

 

 


 

 

Feb 09,2015

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Crude might extend its correction to around $60/barrel – BBH

 

 

 

 

FXStreet (Barcelona) - According to BBH, crude oil’s correction is not over yet and the price might extend to around $60/barrel.

 

Key Quotes

 

“While we are not convinced a significant low is in place, technical considerations suggest the correction is not over either. We envision another 10% rally that would lift the March crude oil futures contract to around $60.”

 

“Output has not been cut. Nor has demand meaningfully increased, and inventories are still rising.”

 

“Baker-Hughes reports another 83 oil rigs were shut down, leaving 1140. The rig count peaked in October at 1609. Last week was the ninth consecutive week that rigs have been shuttered and 14 of the past 17.”

 

“While there are 30% fewer rigs, output remains near its peak at 9.2 mln barrels a day. Rigs are used to drill the well and are only tangentially related to output. However, the shale wells have a shorter life span, and the rig count speaks to the exploration and future production.”

 

“The decline in rigs appears to be concentrated among the less productive fields and vertical rigs. That said, through last week, horizontal rigs have fallen for eleven consecutive weeks.”

 

“Last week's loss of 80 horizontal rigs is the largest drop since 1991. It leaves 1088 still operating. Seasonal forces peak soon.”

 

“Meanwhile, the US refinery strike is expanding. This may boost oil inventories if the refinery shutdowns prevent the production of gasoline and distillates, like heating oil.” 

 

 

 

 

 


 

 

 


 

 

Feb 09,2015

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GBP/USD: faltering at 55 DMA - CB

 

 

 

 

FXStreet (Guatemala) - Karen Jones, chief analyst at Commerzbank noted the technical conditions surrounding GBP/USD.

 

Key Quotes:

 

"GBP/USD’s break of 7 month downtrend was not sustained and the market appears to be faltering at the 55 day ma at 1.5391." 

 

"We note the Elliott wave count on the daily is suggesting that this is already the end of the correction higher." 

 

"Loss of the 20 day ma at 1.5144 should trigger a slide back to the 1.4953 recent low and the 1.4813 2013 low." 

 

 

 

 

 

 


 

 

 


 

 

Feb 10,2015

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GBP/USD retreats from highs

 

 

 

 

FXStreet (Edinburgh) - After climbing as high as the vicinity of 1.5270, GBP/USD is now running out of steam and returning to the id-1.5200s.

 

GBP/USD focus on BoE

 

The pair has picked up pace following a softer tone from the greenback, lifting the sentiment around the risk-associated universe. The sterling keeps consolidating above the 1.5200 handle ahead of the critical BoE Quarterly Inflation Report due tomorrow, followed by a speech by Governor M.Carney.

 

Spot managed to leave behind mixed results from the Industrial and Manufacturing Production in the UK economy during December, managing to bounce off the area of 1.5210.

 

GBP/USD significant levels

 

At the moment the pair is up 0.17% at 1.5243 with the next up barrier at 1.5282 (40-d MA) followed by 1.5353 (high Feb.6) and then 1.5355 (high Jan.5). On the other hand, a breach of 1.5170 (low Feb.5) would aim for 1.5162 (200-h MA) and finally 1.5149 (21-d MA). 

 

 

 

 

 

 


 

 

 


 

 

Feb 10,2015

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US headline retails sales likely to be depressed – BBH

 

 

 

 

FXStreet (Barcelona) - The Brown Brothers Harriman Team previews tomorrows US data release, expecting the headline retails sales to likely to be depressed due to the fall in gasoline prices.

 

Key Quotes

 

“In the US, the focus is on tomorrow’s retail sales. The headline will likely be depressed by the fall in gasoline prices, and we already know there was a slight slowing in auto sales, but the core measure should reverse the 0.4% decline in December.”

 

“At the same time, the recent trade and inventory data is spurring economists to cut Q4 GDP estimates toward 2% or just below.”

 

“However, the strength of the labor market and the recovery in hourly earnings has seen ideas of a mid-year rate hike strengthen, and this has been encouraged by several Fed officials that have spoken this week.” 

 

 

 

 

 

 


 

 

 


 

 

Feb 11,2015

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Japanese inflation might reach BoJ’s 2% target by 2016 – BNPP

 

 

 

 

FXStreet (Barcelona) - Raymond Van der Putten of BNP Paribas, views that Japanese macro wage growth in 2015 and 2016 might aid inflation to reach BoJ’s 2% target by 2016.

 

Key Quotes

 

“In addition to energy prices, wages are an important determinant for price trends. In 2014, they rose by 0.7% higher. All attention is now on the spring wage offensive (shunto).”

 

“As last year, the government is calling on enterprises to do their utmost to implement pay hikes. As the labour market has become very tight, we expect that at the shunto wages will be hiked in FY 2015 by an overall 2.6% (against 2.2% in FY 2014). These talks affect union workers only at relatively large companies and account for just 17.5% of the country’s labour force. It is, however, likely that these increases will also spread to other sectors.”

 

“Macro wage growth could reach 1.6% in 2015 and 2.8% in 2016. In this scenario, inflation could reach the BoJ’s 2% objective in the course of 2016.” 

 

 

 

 

 


 

 

 


 

 

Feb 11,2015

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Comex copper erases gains

 

 

 

 

FXStreet (Mumbai) - Comex Copper has erased part of its gains as investors turn cautious ahead of the Greece’s finance minister Yanis Varoufakis meeting with other finance ministers of the euro zone to discuss a solution to Greece's bailout program. 


Trades below 5-DMA and 10-DMA

 

Copper prices faced rejection at the 5-DMA and the 10-DMA located at USD 2.571 and USD 2.559 respectively. The red metal declined from the session high of USD 2.583 as markets do not expect any long term solution to the Greece’s debt problems from the Eurogroup’s meeting today. However, a short-term fix is likely, which means the Greece-related uncertainty is here to stay for a while. 

 

Meanwhile, the metal remains supported on the expectation of fresh stimulus measures from China, especially after the inflation printed at the lowest level since November 2009.

 

Comex Copper Technical Levels

 

The metal currently trades at USD 2.552/pound. The immediate resistance is seen at 2.571 (5-DMA), above which gains could be extended to 2.619 (Feb. 4th high). Meanwhile, support is seen at 2.526 and 2.489 levels. 

 

 

 

 

 

 


 

 

 


 

 

Feb 11,2015

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Oil the major driver for CAD’s weakness – Scotiabank

 

 

 

 

FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, notes that CAD is weak with a stronger USD, weaker oil prices & a dovish BoC, the risk is ongoing depreciation but oil remains the core driver.

 

Key Quotes

 

“USDCAD is higher, flirting with a break above its seven-session range of 1.2352 to 1.2644.”

 

“The shift higher has come from falling oil prices, a broadly stronger USD and yesterday’s dovish tone from the BoC’s Wilkins. There are no fundamental releases today.”

 

“the economic outlook from the perspective of the BoC is one that likely justifies further interest rate cuts. The market is pricing in a 50% chance of a cut at the March 4th meeting.”

 

“As oil comes under renewed pressure we would expect both the expectations for interest rate cuts in Canada to increase and CAD to weaken.” 

 

 

 

 

 

 

 


 

 

 


 

 

Feb 11,2015

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USD/CAD rises to session highs

 

 

 

 

FXStreet (Mumbai) - The slide in crude prices pushed the Canadian dollar lower, taking the USD/CAD pair to the session high of 1.2645 levels. 

 

Loonie weakens as Crude extends losses

 

Crude prices in the US fell to a low of USD YSD 49.13/barrel ahead of the weekly supply report in the US, which is expected to show inventories rose by 3.8 million barrels last week. Consequently, the USD/CAD pair rose to a high of 1.2645. 

 

Moreover, the rally in the Canadian dollar stalled as crude prices resumed the fall on fears of rising supply glut and a slowdown in China. Meanwhile, a strong US jobs data and the subsequent rise in the US Treasury yields further added to the bullish momentum in the USD/CAD pair. 

 

USD/CAD Technical Levels

 

The pair currently trades 0.44% higher at 1.2642 levels. The immediate resistance is seen on the 4-hour chart at 1.2675 levels, above which the pair could rise to 1.2771 levels. On the flip side, support is seen on the 4-hour chart at 1.2589 and 1.2539 (hourly 200-SMA) levels. 

 

 

 

 

 

 


 

 

 


 

 

Feb 11,2015

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