Daily Market Analysis by FxGrow - page 18
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Daily Market Analysis – 10th Aug, 2015
By FxGrow Research & Analysis Team
US Non-Farm Payrolls support Fed Rate Hike in September
Total nonfarm payroll employment increased by 215,000 in July, and the unemployment rate was unchanged at 5.3 percent. Job gains occurred in retail trade, health care, professional and technical services, and financial activities - US Bureau of Labor Statistics.
Following the NFP data US Dollar rose to a 2 month high versus the Japanese Yen and to a 5 month high against the Swiss Franc. Towards the end of the trading session US dollar gave up its gains due to drop in long bond yields.
Non-Farm Payrolls supports the Fed outlook to begin raising Interest rates later this year in September.
"I don't think it's done any harm but I don't see anything here that screams that Sep hike chances have increased. The revision to June helps, as does the increase in working hours and the underemployment rate falling. Wages rose as expected but y/y only showed a small gain. There's reasons to be bullish but I don't see this report making the Fed's mind up for definite" - Janus Capital's Bill Gross.
"If I had to pick trigger for the Fed to act on jobs it would probably be the unemployment rate dropping to 5.0% or better, and/or a big uptick in wages. Get them up to 2.5%+ y/y and that might be enough for the Fed to pull the trigger" - Janus Capital's Bill Gross.
The US dollar remained supported against its major counterparts on Monday after Friday’s strong NFP report supported the Fed rate hike view.
In China Exports declined in the month of July due to a strong Yuan and weaker demand in the European Union.
"As global growth moderates and commodity prices remain depressed, it is unlikely to see China's trade growth pick up significantly in the remainder of the year" -ANZ Bank.
In Canada employment growth was better than expectations with creation of 6.6K Jobs in the month of July. The unemployment rate remained at 6.8%, while participation rate was at 65.7% according to a report by Statistics Canada.
German Industrial output declined for the month of June to 1.4% mainly due to risks in the Euro zone and a weak growth in the emerging market countries including China.
The British Deficit widened to 1.6 billion pounds in the month of June according to the Office for National Statistics.
Greek government is close to securing the third bailout deal of €86bn to prevent an economic collapse just a week before €3bn debt repayment to the European Central Bank is due.
"When the new bailout comes to parliament for a vote it will be one bill with two articles - one article will be the loan agreement and the MoU (memorandum of understanding) and the second article will be the prior actions" - Greek official.
"Efforts are being made to conclude the negotiations, the horizon is by Monday night or early Tuesday" - Greek official.
Crude oil is trading lower at $43.86 amid rising US rig count.
Gold is trading higher in the Europe at 1094.69, while Silver is up at 14.93
10th Aug 2015 – 10:13hrs GMT
For more in depth Research & Analysis please visit FxGrow.
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.
Daily Technical Analysis – 11th Aug, 2015
By FxGrow Research & Analysis Team
EURUSD
EURUSD was bullish yesterday as it touched a high of 1.1040 yesterday and remained firm towards the end of the trading session. Now the pair is trading above its 20day moving average of 1.1003 in the European trading session. The near term bias remains Bullish with targets of 1.1080
RSI (14), MACD (12, 26), CCI (14), Ultimate Oscillator, ROC, MA100, MA200 indicate a BUY; STOCHRSI (14) is Overbought; while Average True Range (14) indicates Less Volatility.
Support is at 1.0913 while Resistance is at 1.1065
11th Aug 2015 – 08:26hrs GMT
GBPUSD
GBPUSD was bullish yesterday as it touched a high of 1.5603 and remained firm towards the end of the trading session. Now the pair is trading above its 20day moving average of 1.5577 in the European trading session. The near term bias remains Bullish with targets of 1.5650
RSI (14), STOCHRSI (14), MACD (12, 26), ADX (14), CCI (14), Ultimate Oscillator, ROC indicate a BUY; while Average True Range (14) indicates Less Volatility.
Support is at 1.5514 while Resistance is at 1.5626
11th Aug 2015 – 08:30hrs GMT
For more in depth Research & Analysis please visit FxGrow.
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.
Daily Technical Analysis – 11th Aug, 2015
By FxGrow Research & Analysis Team
AUDUSD
AUDUSD was bullish yesterday as it touched a high of 0.7437 and remained firm towards the end of the trading session. Now the pair is trading below its 20day moving average of 0.7376 in the European trading session. The near term bias remains Bearish with targets of 0.7280
RSI (14), STOCHRSI (14), MACD (12, 26), CCI (14), Ultimate Oscillator, ROC, MA100, MA200 indicate a SELL; STOCH (9, 6) is Oversold; while Average True Range (14) indicates High Volatility.
Support is at 0.7327 while Resistance is at 0.7428
11th Aug 2015 – 08:54hrs GMT
USDJPY
USDJPY was bullish yesterday as it touched a high of 124.77 and remained firm towards the end of the trading session. Now the pair is trading above its 20day moving average of 124.67 in the European trading session. The near term bias remains Bullish with targets of 125.50
RSI (14), STOCHRSI (14), MACD (12, 26), ADX (14), Ultimate Oscillator, ROC, MA100, MA200 indicate a BUY; STOCHRSI (14) is Oversold; while Average True Range (14) indicates High Volatility.
Support is at 124.43 while Resistance is at 125.06
11th Aug 2015 – 08:58hrs GMT
For more in depth Research & Analysis please visit FxGrow.
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.
Daily Market Analysis – 11th Aug, 2015
By FxGrow Research & Analysis Team
People's Bank of China Devalues Yuan to Increase Exports
China has devalued the Yuan to combat slowdown, which had ripple effects on the Forex markets as the People’s Bank of China cut its daily reference rate by 1.9 percent.
People's Bank of China depreciated Yuan by 1.9 percent against the US dollar to levels seen almost three years back, which came as a shock to the currency markets.
The statement that was released by the Central Bank said it had changed the way it calculated the currency's daily midpoint against the greenback, now taking the midpoint from market-makers quotes and the previous day's closing price.
Monetary policies in emerging market economies diverged and it was hard to make policies - People's Bank of China.
The Yuan dropped 1.8 percent to 6.32 per dollar as of 1:34 p.m. in Shanghai. It slid 2.3 percent in Hong Kong’s offshore trading.
The ECB reinforced its accommodative monetary policy. The euro area is confronted with the threat from persistent declining inflation and low growth potential. The Bank of Japan announced additional easing monetary policies. The Bank of England maintained its easing monetary policies - People's Bank of China.
The Federal Reserve ended the program of asset purchases. The world economy faces the challenge that the policy rate of the U.S. may rise. The global financial conditions may tighten and emerging market economies may be faced with the sudden reversal of capital flows if the Federal Reserve raises its policy rate earlier than expected - People's Bank of China.
"Since China's trade in goods continues to post relatively large surpluses, the Yuan’s real effective exchange rate is still relatively strong versus various global currencies, and is deviating from market expectations" - People's Bank of China.
The devaluation followed weekend data that showed China's exports tumbled 8.3 percent in July, hit by weaker demand from Europe, the United States and Japan, and that producer prices were well into their fourth year of deflation - Reuters.
The move by the People's Bank of China overnight could have a significant impact on whether the Federal Reserve decides to hike interest rates this year.
Greece has agreed a bailout deal with its European creditors according to the European Commission as it said a technical agreement had been reached with Greece, which now requires political approval.
In Germany Investor confidence dropped to 25.0 in the month of July according to a report released by the ZEW Center for European Economic Research.
Crude oil is trading lower at $44.07 on oversupply and weak global demands.
Gold is trading higher in the Europe at 1109.31, while Silver is up at 15.25
11th Aug 2015 – 11:41hrs GMT
For more in depth Research & Analysis please visit FxGrow.
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.
Daily Technical Analysis – 12th Aug, 2015
By FxGrow Research & Analysis Team
EURUSD
EURUSD was bullish yesterday as it touched a high of 1.1087 yesterday and remained firm towards the end of the trading session. Now the pair is trading above its 20day moving average of 1.1055 in the European trading session. The near term bias remains Bullish with targets of 1.1170
RSI (14), STOCH (9, 6), MACD (12, 26), ADX (14), ROC, MA100, MA200 indicate a BUY; STOCHRSI (14), CCI (14) are Overbought; while Average True Range (14) indicates Less Volatility.
Support is at 1.1045 while Resistance is at 1.1111
12th Aug 2015 – 08:14hrs GMT
GBPUSD
GBPUSD was indecisive yesterday towards the end of the trading session. Now the pair is trading above its 20day moving average of 1.5573 in the European trading session. The near term bias remains Bullish with targets of 1.5650
RSI (14), STOCH (9, 6), MACD (12, 26), ADX (14), CCI (14), Ultimate Oscillator, ROC indicate a BUY; STOCHRSI (14) is Overbought; while Average True Range (14) indicates Less Volatility.
Support is at 1.5530 while Resistance is at 1.5644
12th Aug 2015 – 08:18hrs GMT
For more in depth Research & Analysis please visit FxGrow.
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.
Daily Technical Analysis – 12th Aug, 2015
By FxGrow Research & Analysis Team
AUDUSD
AUDUSD was bearish yesterday and remained weak towards the end of the trading session. Now the pair is trading above its 20day moving average of 0.7288 in the European trading session. The near term bias remains Neutral to Bullish with targets of 0.7360
RSI (14), STOCH (9, 6) are Neutral; ADX (14), CCI (14), Ultimate Oscillator, ROC indicate a BUY; STOCHRSI (14) is Overbought; while Average True Range (14) indicates High Volatility.
Support is at 0.7234 while Resistance is at 0.7324
12th Aug 2015 – 08:23hrs GMT
USDJPY
USDJPY was bullish yesterday and remained firm towards the end of the trading session. Now the pair is trading below its 20day moving average of 125.01 in the European trading session. The near term bias remains Bearish with targets of 124.00
RSI (14), MACD (12, 26), ADX (14), Ultimate Oscillator, ROC, MA100, MA200 indicate a SELL; STOCHRSI (14), CCI (14) are Oversold; while Average True Range (14) indicates High Volatility.
Support is at 123.75 while Resistance is at 124.78
12th Aug 2015 – 08:27hrs GMT
For more in depth Research & Analysis please visit FxGrow.
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.
Daily Market Analysis – 12th Aug, 2015
By FxGrow Research & Analysis Team
Euro hits 2-week high after Greece reached third bailout deal with creditors
Greece and its international lenders reached an 85 billion euro bailout agreement on Tuesday after nailing down the terms of new loans needed to save the country from financial ruin - Reuters.
European Commission spokeswoman said that a technical deal has been reached between Greece, the International Monetary Fund, the European Central Bank, and the European Stability Mechanism.
The deal, which came after 23 hours of talks that continued through the night, must still be adopted by Greece's parliament and by euro zone countries - Reuters.
Following the news EURUSD reached a 2 week high of 1.1115 and is currently trading at 1.1142 in the European trading session.
“The crucial nature of the situation requires the immediate convening of parliament to proceed with the deal’s approval and allow disbursement of the first installment” - Greek PM Alexis Tsipras.
The Greek government has submitted a Draft bill in the Parliament today which contains an agreement with its European creditors for securing the third bailout funds. They are expected to pass the bill on Thursday with Euro group meeting scheduled on Friday.
According to the agreement, Greece will have to produce a primary budget deficit of 0.25 percent of GDP in 2015, followed by surpluses of 0.5 percent in 2016, 1.75 percent in 2017, and 3.5 percent in 2018.
"After this deal the prime minister should call for elections, so that the Greek people can vote on whether they approve the programme or want something else" - Greek Health Minister.
Global investors are awaiting the Germany’s IFO survey, which is likely to indicate Europe’s largest economy is on track to post a reasonable pace of growth.
Gold rose more than one per cent on Tuesday as the dollar cut gains and European stocks fell and investors assessed the impact of China’s move to devalue its currency and prop up its economy.
“Gold’s best moment this year came in the first few months when we saw various FX swings, lots of different central banks cutting interest rates or intervening in their monetary policy, so probably there is some element of that which has helped the rally from Monday continue a bit. Probably gold is benefiting from fears that this is a new round of currency war" - Matthew Turner, analyst at Macquarie.
Consumer confidence in Australia rose for the month of August by 7.8% to 99.5 points according to the Westpac-Melbourne Institute.
"Movements of the Index of this magnitude are unusual and generally associated with highly significant events such as interest rate moves or Commonwealth Budgets" - Bill Evans, Westpac chief economist.
Crude oil is trading lower at $43.45 due to a rapid decline in the value of Yuan.
Gold is trading higher in the Europe at 1116.20, while Silver is up at 15.31
12th Aug 2015 – 11:42hrs GMT
For more in depth Research & Analysis please visit FxGrow.
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.
Daily Technical Analysis – 13th Aug, 2015
By FxGrow Research & Analysis Team
EURUSD
EURUSD was bullish yesterday as it touched a high of 1.1212 yesterday but came down towards the end of the trading session. Now the pair is trading below its 20day moving average of 1.1156 in the European trading session. The near term bias remains Bearish with targets of 1.1080
STOCH (9, 6), ADX (14), CCI (14), Ultimate Oscillator, ROC indicate a SELL; STOCHRSI (14) is Oversold; while Average True Range (14) indicates Less Volatility.
Support is at 1.1078 while Resistance is at 1.1148
13th Aug 2015 – 07:33hrs GMT
GBPUSD
GBPUSD was indecisive yesterday but remained on the higher side towards the end of the trading session. Now the pair is trading above its 20day moving average of 1.5621 in the European trading session. The near term bias remains Bullish with targets of 1.5670
RSI (14), MACD (12, 26), CCI (14), ROC MA100, MA200 indicate a BUY; STOCHRSI (14) is Overbought; while Average True Range (14) indicates Less Volatility.
Support is at 1.5551 while Resistance is at 1.5660
13th Aug 2015 – 07:36hrs GMT
For more in depth Research & Analysis please visit FxGrow.
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.
Daily Technical Analysis – 13th Aug, 2015
By FxGrow Research & Analysis Team
AUDUSD
AUDUSD was bullish yesterday and touched a high of 0.7385 remaining firm towards the end of the trading session. Now the pair is trading below its 20day moving average of 0.7375 in the European trading session. The near term bias remains Neutral to Bearish with targets of 0.7300
RSI (14), STOCH (9, 6) are Neutral; ADX (14), Ultimate Oscillator, ROC, MA100, MA200 indicate a SELL; STOCHRSI (14) is Oversold; while Average True Range (14) indicates Less Volatility.
Support is at 0.7322 while Resistance is at 0.7380
13th Aug 2015 – 07:40hrs GMT
USDJPY
USDJPY was bearish yesterday s it touched a low of 123.79 and then recovered mildly towards the end of the trading session. Now the pair is trading above its 20day moving average of 124.23 in the European trading session. The near term bias remains Bullish with targets of 125.00
RSI (14), STOCH (9, 6), ADX (14), CCI (14), Ultimate Oscillator, ROC, MA200 indicate a BUY; STOCHRSI (14) is Overbought; while Average True Range (14) indicates Less Volatility.
Support is at 124.27 while Resistance is at 124.70
13th Aug 2015 – 07:44hrs GMT
For more in depth Research & Analysis please visit FxGrow.
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.
Daily Technical Analysis – 14th Aug, 2015
By FxGrow Research & Analysis Team
EURUSD
EURUSD was indecisive yesterday towards the end of the trading session. Now the pair is trading just above its 20day moving average of 1.1142 in the European trading session. The near term bias remains Neutral.
RSI (14), STOCH (9, 6), ADX (14), CCI (14) are Neutral; STOCHRSI (14) is Oversold; while Average True Range (14) indicates Less Volatility.
Support is at 1.1113 while Resistance is at 1.1165
14th Aug 2015 – 06:47hrs GMT
GBPUSD
GBPUSD was indecisive yesterday towards the end of the trading session. Now the pair is trading above its 20day moving average of 1.5621 in the European trading session. The near term bias remains Bullish with targets of 1.5670
RSI (14) is Neutral; STOCH (9, 6), MACD (12, 26), Ultimate Oscillator, MA100, MA200 indicate a BUY; STOCHRSI (14) is Oversold; while Average True Range (14) indicates Less Volatility.
Support is at 1.5590 while Resistance is at 1.5627
14th Aug 2015 – 06:52hrs GMT
For more in depth Research & Analysis please visit FxGrow.
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.