Daily Market Analysis by FxGrow - page 6
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Daily Market Analysis – 11th June, 2015
By FxGrow Research & Analysis Team
Reserve Bank of New Zealand cut its Cash rate to 3.25%
The Reserve Bank of New Zealand unexpectedly cut its official cash rate by 0.25% to 3.25% the first reduction since 2011.
"The New Zealand economy is growing at an annual rate around three percent, supported by low interest rates, high net migration and construction activity, and the decline in fuel prices. However, the fall in export commodity prices that began in mid-2014 is proving more pronounced. The weaker prospects for dairy prices and the recent rises in petrol prices will slow income and demand growth and increase the risk that the return of inflation to the mid-point would be delayed" - Reserve Bank of New Zealand.
"With the fall in commodity prices and the expected weakening in demand, the exchange rate has declined from its recent peak in April, but remains overvalued. A further significant downward adjustment is justified. In light of the forecast deterioration in the current account balance, such an exchange rate adjustment is needed to put New Zealand’s net external position on a more sustainable path" - Reserve Bank of New Zealand.
Following the rate cut NZDUSD plunged to a 5 year low of 0.7005 in the European trading session. The move by the RBNZ surprised traders as market was pricing less than 50% chances of a rate cut this morning.
Greek Prime Minister Alexis Tsipras had late night talks with the leaders of Germany and France to reach a solution and avoid default. Greece needs to repay €1.6bn to the IMF by the end of June.
"It was agreed unanimously that the talks between the Greek government and the institutions should be pursued with great intensity" - German government spokesman.
"We decided to intensify the efforts to bridge the remaining differences and proceed, I believe, to a solution in the coming period" - Greek PM Alexis Tsipras.
Ratings agency S&P has downgraded Greece by lowering its credit rating from CCC+ to CCC citing the delayed International Monetary Fund repayment.
In Japan Manufacturing activity deteriorated in the second quarter of the year as Business Survey Index plunged from 2.4 in the Q1 to -6.0 in the Q2.
"In Japan Core consumer spending fell to the lowest level since last summer in April, and industrial output may well have contracted this quarter. We therefore expect a sharp slowdown in GDP growth" - Marcel Thieliant, Capital Economics.
In UK Manufacturing output declined in April by 0.4% while total industrial production climbed 0.4% from the previous month.
"The British economy is on a firm footing, having grown faster than previously thought in 2014 and with solid, steady and sustainable growth predicted into 2016" - NIESR.
Crude Oil is down to $61.15 after profit taking in the European trading session.
Gold is trading lower in the Europe at 1179.63 while Silver is weak at 15.86
11th June 2015 – 10:14hrs 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 June, 2015
By FxGrow Research & Analysis Team
EURUSD
EURUSD was bearish yesterday and touched a low of 1.1204 but then attempted to push higher towards the closing of the US trading session. Now it is trading below its 20day moving average of 1.1244 in the European trading session. The near term bias remains Neutral to Bearish with targets of 1.1150
STOCH (9, 6), RSI (14), MACD (12, 26), CCI (14), Ultimate Oscillator, ROC, MA100, MA200 indicate a SELL; STOCHRSI (14) is Oversold; while Average True Range (14) indicates Less Volatility.
Support is at 1.1207 while Resistance is at 1.1288
12th June 2015 – 07:03hrs GMT
GBPUSD
GBPUSD was bullish yesterday and touched a high of 1.5527 but now it has corrected lower. Now the pair is trading above its 20day moving average of 1.5509 in the European trading session. The near term bias remains Bullish with targets of 1.5580
RSI (14), STOCH (9, 6), MACD (12, 26), ADX (14), CCI (14), Ultimate Oscillator, ROC indicate a BUY; STOCHRSI (14) is Neutral; while Average True Range (14) indicates Less Volatility.
Support is at 1.5456 while Resistance is at 1.5533
12th June 2015 – 07:08hrs 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 June, 2015
By FxGrow Research & Analysis Team
AUDUSD
AUDUSD attempted to push higher yesterday and touched a high of 0.7791 but now it has corrected lower. Now the pair is trading below its 20day moving average of 0.7741 in the European trading session. The near term bias remains Bearish with targets of 0.7650
RSI (14), STOCH (9, 6), MACD (12, 26), CCI (14), Ultimate Oscillator, ROC indicate a SELL; while Average True Range (14) indicates Less Volatility.
Support is at 0.7691 while Resistance is at 0.7760
12th June 2015 – 07:12hrs GMT
USDJPY
USDJPY was bullish yesterday and touched a high of 124.11 but has now corrected lower. Now it is trading above its 20day moving average of 123.53 in the European trading session. The near term bias remains Neutral to Bullish with targets of 124.20
RSI (14), STOCH (9, 6), MACD (12, 26), CCI (14), Ultimate Oscillator, ROC indicate a BUY; while Average True Range (14) indicates Less Volatility.
Support is at 123.32 while Resistance is at 123.77
12th June 2015 – 07:16hrs 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 June, 2015
By FxGrow Research & Analysis Team
IMF leaves Greece bailout talks amid major differences
The International Monetary Fund has walked out of talks with Greece amid major differences over labour market and pension reforms.
“The ball is very much in Greece’s court. There are major differences between us in most key areas. There has been no progress in narrowing these differences recently” - IMF spokesman Gerry Rice.
Donald Tusk, president of the European Council said "There is no more time for gambling. The day is coming. I'm afraid that someone says that the game is over. It is very obvious that we need decisions, not negotiations".
"Time is running out, and the risk of insolvency is increasing by the day. The main losers in that scenario would be Greece and the Greek people" - Jens Weidmann, president of the Bundesbank.
Greece government needs to strike a deal with its European creditors soon and secure the bailout funds. A deal must be signed by the Eurozone finance ministers before the end of the month. If there is no deal then Greece will be in trouble and could fall out of the Eurozone.
Despite major differences with the IMF Greece hopes to clinch a deal with its lenders at a meeting of Eurozone finance ministers on June 18.
"I hope a deal will come very soon, on June 18, when the Euro group takes place" - Flabouraris, aid to Greek Prime Minister Alexis Tsipras.
Greece's Unemployment Rate rose to 26.6% in the first quarter of the year as it continues to struggle with its long term unemployment problem.
In US Retail sales climbed for the month of May to 1.2% indicating that the economy has regained momentum after contracting in the first quarter.
In China Retail sales and Industrial output improved for the month of May. Total production from China grew at 6.1% YoY basis in May while retail sales soared 10.1% from a year earlier.
In Australia Unemployment rate fell to 6.0% in May the lowest level in 12 months. The number of people with jobs rose by 42K to 11.76 million in May, according to the Australian Bureau of Statistics.
Crude Oil is down to $60.30 because of a stronger dollar and amid uncertainty in Greece.
Gold is trading lower in the Europe at 1179.25 while Silver is weak at 15.91
12th June 2015 – 09:10hrs 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 – 15th June, 2015
By FxGrow Research & Analysis Team
EURUSD
EURUSD tried to move upwards last week touching a high of 1.1385 but since then it has lost its gains. Now it is trading just near its 20day moving average of 1.1236 in the European trading session. The near term bias remains Neutral to Bearish with targets of 1.1150
RSI (14), CCI (14) are Neutral; STOCH (9, 6), MACD (12, 26), Ultimate Oscillator, ROC, MA100, MA200 indicate a SELL; while Average True Range (14) indicates Less Volatility.
Support is at 1.1150 while Resistance is at 1.1284
15th June 2015 – 07:08hrs GMT
GBPUSD
GBPUSD had a bullish trend last week and touched a high of 1.5597 but now it has corrected lower. Now the pair is trading below its 20day moving average of 1.5548 in the European trading session. The near term bias remains Neutral to Bearish with targets of 1.5470
RSI (14), ADX (14) are Neutral; STOCH (9, 6), CCI (14), Ultimate Oscillator, ROC indicate a SELL; STOCHRSI (14) is Oversold; while Average True Range (14) indicates Less Volatility.
Support is at 1.5485 while Resistance is at 1.5597
15th June 2015 – 07:14hrs 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 – 15th June, 2015
By FxGrow Research & Analysis Team
AUDUSD
AUDUSD remained in an Uptrend last week touching a high of 0.7792 but now it has corrected lower. Now the pair is trading just near its 20day moving average of 0.7727 in the European trading session. The near term bias remains Neutral to Bearish.
RSI (14), CCI (14), are Neutral; STOCH (9, 6), MACD (12, 26), ADX (14), Ultimate Oscillator, ROC indicate a SELL; while Average True Range (14) indicates Less Volatility.
Support is at 0.7712 while Resistance is at 0.7760
15th June 2015 – 07:20hrs GMT
USDJPY
USDJPY came down last week and touched a low of 122.60 but has now corrected higher. Now it is trading above its 20day moving average of 123.42 in the European trading session. The near term bias remains Neutral to Bullish with targets of 124.40
RSI (14), MACD (12, 26) are Neutral; STOCH (9, 6), ADX (14), CCI (14), Ultimate Oscillator, ROC indicate a BUY; while Average True Range (14) indicates Less Volatility.
Support is at 123.30 while Resistance is at 123.75
15th June 2015 – 07:25hrs 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 – 15th June, 2015
By FxGrow Research & Analysis Team
Fears of Greek Default Rise after talks break down
On Sunday night talks between Greek ministers and its European creditors collapsed after a new economic reform proposal submitted by Athens was deemed inadequate to continue negotiations.
Germany has given a clear warning that Greece could leave the Eurozone as officials were unable to reach out a last-minute deal in Brussels.
“The shadow of a Greek exit from the Eurozone is becoming increasingly perceptible. Greece’s game theorists are gambling the future of their country and Europe’s too” - German Vice Chancellor, Sigmar Gabriel.
Greece needs to repay €1.6bn to the IMF by June 30 or risk default, and a possible exit from the Euro. It also needs to repay €6.7bn when Greek bonds held by the European Central Bank fall due in July and August this year.
Greek default and exit from the Euro could trigger some huge moves in the markets and will have a damaging effect on countries that are part of the Eurozone.
"We want to help Greece and keep it in the euro. However, not just time is running out but also, everywhere in Europe, patience. All over Europe there is a growing sentiment: Enough!" - German Vice Chancellor, Sigmar Gabriel.
Greece is under pressure as it also needs another €1.5 billion to pay public sector wages and pensions and it cannot do so without the bailout funds.
The Greek government is blaming its European creditors and IMF who financed its 240 billion Euro bailout program in 2010, for sticking with demands that are economically senseless and politically unacceptable to the Greek citizens.
Manufacturing industry in the Euro zone rebounded by 0.1% in April lower than analyst expectations of a 0.4% gain. Largest contribution came in from Germany and France. A new report from the World Bank forecasts the Euro area's GDP to increase by 1.5% this year.
US Producer Prices rose to 0.5% in May indicating signs of an economic recovery as the world's biggest economy is getting back on track.
In Japan Industrial output rose by 1.2% in April while exports climbed to 0.6% supported by a weaker Yen.
"There's a large majority of bond investors who think the next move by the Bank of Japan is going to be more easing" - Morgan Stanley MUFG Securities Co.
Crude Oil is down to $59.51 on concerns over a global oversupply versus the demand.
Gold is trading lower in the Europe at 1174.30 while Silver is weak at 15.87
15th June 2015 – 10:11hrs 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 – 16th June, 2015
By FxGrow Research & Analysis Team
EURUSD
EURUSD had a bullish trend yesterday and touched a high of 1.1293 and remained firm towards the end of the trading session. Now it is trading above its 20day moving average of 1.1268 in the European trading session. The near term bias remains Neutral to Bullish with targets of 1.1360 to 1.1380
RSI (14), MACD (12, 26), ROC, MA100, MA200 indicate a BUY; STOCHRSI (14), CCI (14) are Overbought; while Average True Range (14) indicates Less Volatility.
Support is at 1.1207 while Resistance is at 1.1322
16th June 2015 – 07:00hrs GMT
GBPUSD
GBPUSD had a bullish trend yesterday and touched a high of 1.5613 and remained firm towards the end of the trading session. Now the pair is trading above its 20day moving average of 1.5584 in the European trading session. The near term bias remains Neutral to Bullish with targets of 1.5680
RSI (14), STOCH (9, 6), MACD (12, 26), STOCHRSI (14), CCI (14), ROC, MA100, MA200 indicate a BUY; Ultimate Oscillator is Overbought; while Average True Range (14) indicates Less Volatility.
Support is at 1.5552 while Resistance is at 1.5650
16th June 2015 – 07:04hrs 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 – 16th June, 2015
By FxGrow Research & Analysis Team
AUDUSD
AUDUSD had a bullish trend yesterday and touched a high of 0.7775 but now it has corrected lower. Now the pair is trading below its 20day moving average of 0.7761 in the European trading session. The near term bias remains Neutral to Bearish.
STOCH (9, 6) is Neutral; RSI (14), ADX (14), Ultimate Oscillator, ROC indicate a SELL; STOCHRSI (14), CCI (14) are Oversold; while Average True Range (14) indicates Less Volatility.
Support is at 0.7721 while Resistance is at 0.7779
16th June 2015 – 07:09hrs GMT
USDJPY
USDJPY remained indecisive yesterday and moved in a closed range. Now it is trading above its 20day moving average of 123.47 in the European trading session. The near term bias remains Neutral to Bullish with targets of 124.10
RSI (14), STOCHRSI (14), MACD (12, 26), ADX (14), CCI (14), ROC, MA100 indicate a BUY; STOCH (9, 6) is Neutral; while Average True Range (14) indicates Less Volatility.
Support is at 123.32 while Resistance is at 123.88
16th June 2015 – 07:15hrs 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 – 16th June, 2015
By FxGrow Research & Analysis Team
RBA expects Australian Dollar to Drop Further
Reserve Bank of Australia released the minutes from its June monthly meeting. RBA stated "It was appropriate to leave the cash rate unchanged and to assess information on economic and financial conditions as it become available".
"A lower exchange rate would have an immediate beneficial effect on some sectors such as tourism. It would need to be lower for a sustained period to have a significant effect on large investment decisions in other trade-exposed sectors" - Reserve Bank of Australia.
“The board’s assessment was that the stance of monetary policy should be accommodative. Output growth had continued at a below-trend pace over the past year and would remain a little below trend in the period ahead before picking up to around trend in the latter part of 2016" - Reserve Bank of Australia.
"The current level of the exchange rate, particularly on a trade-weighted basis, continued to offer less assistance than would normally be expected in achieving balanced growth in the economy. A further depreciation therefore seemed both likely and necessary, particularly given the significant declines in commodity prices over the past year" - Reserve Bank of Australia.
AUDUSD is trading lower in the European trading session at 0.7728 following the release of the RBA minutes.
In Greece there is no visible progress in the bailout negotiations with its European partners. Risks of a Greek default and a possible exit from the Euro are running high.
If Greece is unable to reach a deal with its European creditors it could become bankrupt and leave the Eurozone. Major concern for Banks in Greece is that deposit outflows are gathering pace with another €400 million being withdrawn yesterday.
Failing to keep Greece in the Euro after years of negotiations and emergency bailouts of €240bn could mark a blow to the official currency of the 19 member nations.
In Germany Consumer Price Inflation rose to 0.1% last month according to a report released from the Federal Statistical Office.
Switzerland's Producer and Import prices declined 6% YoY basis in May according to the Federal Statistical Office. Swiss retail sales rebounded to a growth of 1.6% in April, after a fall of 2.4% in the previous month.
Crude Oil is down to $60.06 on concerns over global supplies.
Gold is trading steady in the Europe at 1182.64 while Silver is weak at 16.02
16th June 2015 – 09:46hrs 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.