Eurozone’s retail sales increase 0.3% in December

Eurostat released its retail sales data for the Eurozone on Wednesday. Retail sales in the Eurozone increased 0.3% in December, in line with expectations, after a flat reading in November. November's figure was revised up from a 0.3% fall.

Non-food sales increased 0.2% in December, food, drinks and tobacco sales rose 0.6%, while automotive fuel sales declined 0.1%.

On a yearly basis, retail sales in the Eurozone climbed 1.4% in December, missing forecasts of a 1.5% gain, after a 1.6% increase in November. November's figure was revised up from a 1.4% gain.

Non-food sales gained 1.8% year-on-year in December, gasoline sales decreased 0.8%, while food, drinks and tobacco sales rose 0.8%.

In 2015 as whole, retail sales climbed 2.4%.

Technical analysis of USD/CHF for February 03, 2016

1454495795_USDCHFH1.png

Overview:

  • On the one-hour chart, the USD/CHF pair continues moving in a bullish trend from the support levels of 1.0123 and 1.0154. Currently, the price is in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. As the price is still above the moving average (100), immediate support is seen at 1.0154, which coincides with a golden ratio (61.8% of Fibonacci). Consequently, the first support is set at the level of 1.0154. So, the market is likely to show signs of a bullish trend around the spot of 1.0123/1.0154. In other words, buy orders are recommended above the golden ratio (1.0154) with the first target at the level of 1.0224. Furthermore, if the trend is able to breakout through the first resistance level of 1.0224. We should see the pair climbimg towards the double top (1.0255) to test it. It would also be wise to consider where to place a stop loss; this should be set below the second support of 1.0123.
USDCHFH4.png
The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of NZD/USD for February 03, 2016

Overview:

  • As expected the NZD/USD pair has kept moving downwards from the level of 0.6557. Yesterday, the pair dropped from the level of 0.6557 (this level of 0.6557 coincides with the double top) to the bottom around 0.6461. Today, the first resistance level is seen at 0.6546 followed by 0.6600, while daily support 1 is seen at 0.6503. According to the previous events, the NZD/USD pair is still moving between the levels of 0.6600 and 0.6503; for that we expect a range of 97 pips (0.6600 - 0.6503). If the NZD/USD pair fails to break through the resistance level of 0.6600, the market will decline further to 0.6546. This would suggest a bearish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 0.6503 with a view to test the daily pivot point. On the contrary, if a breakout takes place at the resistance level of 0.6605 (the double top), then this scenario may become invalidated.

NZDUSDM30.png

Intraday technical levels:

  • R3: 0.6642
  • R2: 0.6600
  • R1: 0.6546
  • PP: 0.6503
  • S1: 0.6450
  • S2: 0.6408
  • S3: 0.6354
The material has been provided by InstaForex Company - www.instaforex.com

China’s gold demand expands on increased flight to safety – China Gold Association

FXStreet (Mumbai) - In its latest gold report released on Wednesday, the China Gold Association noted that China’s gold demand will continue to increase as investors seek safe assets in light of the recent Chinese stock market turmoil and make investments in jewellery.

The report showed that, China’s consumption climbed 3.7% to 985.9 metric tons in 2015 from a year earlier. Gold jewellery demand gained 2.1% to 721.58 tons last year, while bar consumption added 4.8% to 173.08 tons and coin buying rose 78% to 22.8 tons. While industrial use increased 3.5%.

In its latest gold report released on Wednesday, the China Gold Association noted that China’s gold demand will continue to increase as investors seek safe assets in light of the recent Chinese stock market turmoil and make investments in jewellery.

(Market News Provided by FXstreet)

GBPUSD: Towards the top of current channel – Lloyds Bank

FXStreet (Delhi) – Research Team at Lloyds Bank, suggests that GBPUSD have moved back towards the top of the current channel overnight, mostly due to the USD coming under a little pressure as a result of the US equity market and bond yield weakness.

Key Quotes

“If the US ADP employment numbers disappoint this afternoon. Interim pivot support lies in the 1.4340/30 region, a break there risks a move back to channel support lying in the 1.4180/75 region. A breakdown through there suggests we are returning to the underlying bear trend and a test of the 1.40-1.35 key long term support region.”

Research Team at Lloyds Bank, suggests that GBPUSD have moved back towards the top of the current channel overnight, mostly due to the USD coming under a little pressure as a result of the US equity market and bond yield weakness.

(Market News Provided by FXstreet)

Bank of Japan Governor Haruhiko Kuroda: there is no limit to monetary policy easing

Bank of Japan (BoJ) Governor Haruhiko Kuroda said in a speech on Wednesday that there was no limit to monetary policy easing.

"If we judge that existing measures in the toolkit are not enough to achieve the goal, what we have to do is to devise new tools, rather than give up the goal," he said.

"I am convinced that there is no limit to measures for monetary easing. The Bank will continue to devote itself to innovation in monetary policy measures," Kuroda added.

He pointed out that the central bank could cut its interest rate further if needed.

Australia’s trade deficit widens to A$3.54 billion in December

The Australian Bureau of Statistics released its trade data on Wednesday. Australia's trade deficit widened to A$3.54 billion in December from A$2.73 billion in November, missing expectations for a decline to a deficit of A$2.5 billion. November's figure was revised up from a deficit of A$2.90 billion.

Exports decreased by 5.0% in December, while imports fell 1.0%.

In 2015 as whole, the deficit climbed to A$33.5 billion from a deficit of A$9.9 billion in 2014.

Reserve Bank of New Zealand Governor Graeme Wheeler: the interest rate cut is not “a mechanistic approach”

The Reserve Bank of New Zealand (RBNZ) Governor Graeme Wheeler said in a speech on Wednesday that the interest rate cut is not "a mechanistic approach". But he noted that further policy easing could be needed if concerns about the global economy will deepen.

"If concerns deepen around the prospects for the global economy and its impact on New Zealand, some further policy easing may be needed over the coming year to ensure future average inflation settles near the middle of the target range," Wheeler said.

Kansas City Federal Reserve President Esther George: the Fed should continue to raise its interest rate

Kansas City Federal Reserve President Esther George said in a speech on Tuesday that the Fed should continue to raise its interest rate.

"My view is that the Committee should continue the gradual adjustment of moving rates higher to keep them aligned with economic activity and inflation," Kansas City Federal Reserve president said.

George noted that the monetary could not respond to every volatility in financial markets.

"Even looking at developments so far this year, financial markets have been quite volatile. While taking a signal from such volatility is warranted, monetary policy cannot respond to every blip in financial markets," she said.

George is a voting member on the Federal Open Market Committee (FOMC).

Option expiries for today’s 10:00 ET NY cut

USD/JPY: 116.50 (USD 725m) 118.50 (1.69bln) 118.50 (570m) 119.00 (253m) 119.50 (291m) 121.00 (515m)

EUR/USD 1.0700 (EUR 342m) 1.0800 (571m) 1.0875 (704m) 1.0930-25 (325m) 1.1000 (435m)

GBP/USD 1.4300-05 (GBP 333m) 1.4500 (318m)

USD/CHF 1.1000 (USD 218m)

AUD/USD 0.7150 (359m)

USD/CAD 1.3800 (USD 515m) 1.4000 (160m) 1.4200 (760m)