| 07 January 2016, Time of Writing: 09:00 am | |||||||||||||||||||||||||||||||||||||||||||||||||
| Trader Daily Market Update | |||||||||||||||||||||||||||||||||||||||||||||||||
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| Vol.: Volatility; Prev.: Previous; Cons.: Consensus | |||||||||||||||||||||||||||||||||||||||||||||||||
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For the second time this week, European traders wake up to news of Chinese shares (CSI300 Index) being halted after only about 15 minutes of trading, due to the benchmark index falling past its 7% cut-off point. The PBOC once again continued to weaken the yuan, this time by 0.5% versus the USD, which also happens to be the biggest daily devaluation since August. Investor fears caused safe-haven plays such as gold and the yen to strengthen, while oil prices are currently down nearly 4% and futures indicate that global stock markets will have another down day. Elsewhere, the USD-Index failed to gain traction yesterday, despite ADP data crushing estimates, coming in at 257K vs 193K forecasted, and removing some early doubts that job production out of US economy waned towards the end of 2015. Lastly, FOMC minutes, released yesterday, showed that some members saw a rate increase in December as a “close call” due to on-going low inflation levels. Despite headlines continuing to come out regarding Chinese market fears, the economic calendar is absent of any tier-one data during the European session, with only Europe scheduled to release unemployment and retail sales data. Turning to the North American session, Bank of Canada’s Governor Poloz is due to hold a press conference where he will come under pressure as oil prices, one of Canada’s most import exports, continue to fall. Lastly, the US will publish unemployment claims, which are forecasted to fall once again towards their three-week lows. | |||||||||||||||||||||||||||||||||||||||||||||||||
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Daily Technical Analysis is conducted using a proprietary technology based on advanced methods of time-series analysis and custom build technical indicators. Detailed quantitative analysis of the market state on different timeframes let us accurately evaluate current Trend and Momentum. Going further we deduce the daily target from the multiple factors such as long and short term momentum, different volatility measures, mode of market behaviour and other characteristics. For a ranged market we will show a range instead of a single number. | |||||||||||||||||||||||||||||||||||||||||||||||||
| Daily Forecasts | |||||||||||||||||||||||||||||||||||||||||||||||||
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*spot prices as of 07:00GMT Daily Forecasts consists of both technical and fundamental analysis as well as a review of open sources from major FX contributors. The forecasts give investors a projection on individual currencies. |
