The Bank of England released its ‘Super Thursday’ data earlier, with the Interest Rate left on hold at 0.5% and Asset Purchase Facility maintained at £435B. All votes were unanimous. The Quarterly Inflation Report projected inflation at 2.28% in 12 months time, 2.16% in 2 years and 2.11% in 3 years. GDP forecast for 2018 […]
The New Zealand Dollar fell to a four-week low against the greenback after the Reserve Bank of New Zealand (RBNZ) kept rates on hold as expected and signalled no increases until next year. The official cash rate was left unchanged at 1.75% for the 15th month in a row. RBNZ cut its GDP forecast for […]
Crude oil came under pressure yesterday following the release of weekly statistics on inventories and supply in the United States. Inventories are up for a second week in a row, a common occurrence for this time of year, with nothing notable shown after 10 weeks of substantial decline. Most importantly, perhaps, the report showed that […]
Today is known as “Super Thursday” when the Bank of England releases its policy decision and statement plus the Inflation Report. At 12.00 GMT, the Interest Rate Decision and Monetary Policy Summary are announced by the Bank of England. If the BoE is hawkish about the inflationary outlook of the economy and raises the interest […]
The Bank of England is expected to largely proceed as normal today on ‘Super Thursday’ when the central bank releases its policy decision and statement plus the Inflation Report. US Fed’s Dudley spoke at an event jointly hosted by Thomson Reuters and the European American Chamber of Commerce in New York about Banking Culture. Dudley […]
The USD has found some strength during the selloff in stocks, resulting in a move higher from the lows at 1.22483 to 1.25663. It has retraced lower to 1.24900 today and looks to have formed a bear flag shown here in red. This could target 1.24500 if it breaks down and this area is strong […]
Gold dropped more than 1% to its lowest in over three weeks on Tuesday, as a big recovery in the U.S. stock markets exerted downward pressure on the safe haven precious metal. Today’s trade saw some dip buying in the yellow metal and prices recovered 0.3%, but it remains to be seen if the rebound […]
American stock indices closed higher on Tuesday, despite the drops experienced earlier in the day. This morning, index futures are trading at slightly lower levels, with a prevalent sense of caution creating pressure on Asian sites. The MSCI Asia Pacific Index, excluding Japan, is now at +0.8%, albeit trading earlier at 2% gains. The U.S. […]
Global Stock exchanges recovered somewhat on Tuesday, but as Asia closes, its equity markets are ending the session on the lows of the day, with the Japan 225 down to the 21600.00 area from a high of 22350.00. Whether this pattern continues into Europe remains to be seen. This switch back to risk-off mode has […]
The USDJPY pair had a difficult day yesterday as the Dollar found some strength. Key support levels were tested since the start of 2018 and the price moved below 110.000. This area was used as resistance on Friday, with the high extending to just below 110.500. The low from the 26th of January is 108.277 […]
Since our report yesterday, FTSE 100 has fallen sharply amid a global equity rout. Given the sharp declines, it is worthwhile reviewing the technical picture again today. The UK’s FTSE 100 share index fell as much as 3.5% following dramatic sell-offs across the US and Asia, sparked by worries about inflation and rising bond yields. […]
The shock in stock markets continues, as yesterday was the worst since August 2011. US stock markets were some of the worst hit, with the US 30 (DOW) falling -4.60% or 1175.2 points. WTI Crude Oil futures fell 2.70% or $1.82, while Gold has a modest rise given the volatility, up $5.88 or 0.44% to […]
The UK’s FTSE 100 share index fell to its lowest level in two months as global equity markets plummeted amid worries about inflation and rising bond yields. On Monday, the index was on track for its fifth day of losses. This is the longest losing streak since November. The weakness in global equity markets was […]
The German index has been forming a broadening pattern over the last few months. The bottom of this pattern has been tested, with the price holding above the trend line at present despite a move below overnight. The 200-Day Moving Average is located just above the price at 12700.00. Further resistance is at 12809.40 and […]
Equities are once again down this morning after a hard sell-off last week, in stark contrast to the recent run higher. The NFP report had little impact on stocks but affected the USD, sending GBPUSD lower from 1.42157 to test the 1.41000 support area. Fed Chair Janet Yellen was out with comments over the weekend […]
Thursday ended the busiest stretch for internet and software companies with results from Amazon, Apple, Microsoft, PayPal and Google. Although Amazon and Apple gained after hours yesterday, Google slipped, as their profits missed forecasts. There were also declines in Microsoft and PayPal on Wednesday, which weighed on the Nasdaq 100 Index (NDX). Combined with the […]
The chart for gold in the 4-hour timeframe shows the break higher from the Bull flag marked in red, and the retest late yesterday. The 1350.00 level needs to be retaken with support holding so far around 1344.00. A further retest of the top of the flag would tag the 1340.00 area. Further support on […]
Today at 13.30 GMT – US Non-Farm Payrolls and US Unemployment will be published. The nonfarm payrolls are released by the US Department of Labor and present the number of new jobs created during the previous month, in all non-agricultural businesses. The monthly changes in payrolls can be extremely volatile, due to its high relation […]
Today is Non-farm Payrolls day in the US. This data release is generally one of the most important of the month, being a leading indicator of consumer spending and economic health, made public shortly after it is calculated. It charts the change in the number of employed during the previous month. Also released at the […]
The GBPUSD pair tried to continue higher on the 25th of January but profit takers forced price lower under the rising resistance trend line at 1.42000. The 1.43450 area was the extent of gains made so far, but support at 1.40000 has been confirmed, leaving a good level to position against. The 4-Hour moving averages […]
The Australian dollar eased on Thursday following weaker-than-expected economic data. The Australian Dollar took an initial knock on Wednesday on news of tepid consumer price data, which came in at 0.6% compared to an expectation of 0.7%. This showed that a relatively strong economy has yet to translate into significantly higher inflation. The Reserve Bank […]
The markets went to test nearby support and resistance after the Fed’s Monetary Policy Statement was released yesterday. The Interest Rate was left unchanged and only small parts of the text were altered. The statement added that the expectations would “warrant FURTHER gradual increases in the federal funds rate” (adding the word “further”). They also […]
EURUSD has retraced a little from recent highs at 1.25372 and in the process, appears like it may be forming a Bull flag. It is today testing the top of the flag pattern around 1.24600 and if a break out should occur then 1.25000 should be tested followed, by resistance at the high in quick […]
Cryptocurrencies came under selling pressure as reports emerged that that Bitfinex and Tether were subpoenaed by the U.S. Commodity Futures Trading Commission (CFTC) last week. Tether is a so called stablecoin, the idea behind them is to peg a cryptocurrency coin to something like the U.S. dollar. According to the Tether website, “Tether Platform currencies […]
President Donald Trump delivered his first State of the Union Address last night from Capitol Hill. He said that he wants Congress to produce legislation that generates at least $1.5 trillion for new infrastructure investment. Every federal dollar for infrastructure should be leveraged by partnering with state and local governments and tapping private sector investment. […]
The German index has dropped back from support after setting a new High last week at 13600.00. The market barely broke above the previous high at 13535.00 before the price was pushed lower. The divergence between this index and other global indices is stark. The US markets have been strong trending higher, while the Germany30 […]
U.S. Crude Oil (WTI) traded below the $65 handle and Brent Crude (BRENT) below $69 as prices backed off their highest levels in years. The factors that pushed crude price higher may now be coming to an end. The weakening U.S. Dollar has buoyed commodity prices recently but the steep decline took a breather on […]
Today at 10.00am GMT, EU Gross Domestic Product was published in line with the expectations. Eurozone GDP (QoQ) for Q4 came in as expected at 0.6%, from a previous 0.7%. The YoY figure for Q4 also came in as expected at 2.7%, from a previous 2.8%. GDP is the value of all produced goods and […]
President Donald Trump will deliver his first State of the Union Address at 21:00 EST (02:00 GMT Wednesday 31st January) tonight from Capitol Hill. Any reference made to the economy, trade or the U.S. dollar could result in volatility in markets. The consensus deems it likely that the speech will have a direct impact on […]
The GBPCAD pair has been rising steadily since its break above 1.70500 in early January but it has today dropped back under trend line support. It reached a peak of 1.76357 on Thursday. The blue rising trend line managed to hold as support on the initial series of tests but gave way late on Friday. […]
