FXStreet (Córdoba) – According to analysts from Danske Bank, Chinese policymakers have a much higher priority in supporting construction and dealing with overcapacity in the housing sector, than boosting exports, making difficult to consider another devaluation of the yuan.

Key Quotes:

“China has today eased policy further aiming its ammunition at the ailing construction sector. It has cut the down payment for first-time buyers from 25% to 20% (in cities without purchase restrictions such as Beijing and Shanghai). The down payment was also reduced last year, by 5 percentage points, in an attempt to support housing.”

“Supporting construction and dealing with overcapacity has a much higher priority in Chinese policymaking than boosting exports. This is another reason we do not see a devaluation as a likely move from China, as it would also risk destabilising the Chinese economy due to capital outflows and a global currency war. In contrast with cutting interest rates, it also does not risk adding to the depreciation pressure on the CNY.”

“A moderate recovery of the construction sector is part of our case for a moderate improvement in the Chinese economy outside services. This should help ease the market fears of a Chinese recession.”

“The hard landing in Chinese construction is a major reason global metal prices have been suppressed. (…) The base metal markets have reacted positively to the news today, with prices up 1.0-1.5% despite overall negative risk sentiment today.”

A turn in base metal prices would also help to reduce global deflationary pressures. Hence this should have a positive impact on global inflation expectations and bond yields.”

According to analysts from Danske Bank, Chinese policymakers have a much higher priority in supporting construction and dealing with overcapacity in the housing sector, than boosting exports, making difficult to consider another devaluation of the yuan.

(Market News Provided by FXstreet)

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FXStreet (Edinburgh) – The greenback keeps depreciating vs. the Japanese yen today, with USD/JPY now meandering the area of session lows near 120.20.

USD/JPY weaker on USD-selling

Spot has come under renewed selling pressure following a weaker tone in USD, dragged lower by another slump of crude oil prices, softer US Treasuries yields and the increasing bias towards the risk-off trade.

Data wise, US IBD/TIPP’s Business Optimism index has surpassed estimates, while the speech by BoJ’s H.Kuroda and Japan’s Consumer Confidence are due later in the Asian trading hours.

USD/JPY levels to watch

The pair is down 0.63% at 120.23 with the next support at 118.41 (20-day sma) followed by 117.78 (23.6% Fibo of 123.67-115.96) and finally 115.96 (low Jan.19). On the other hand, a breakout of 121.70 (high Jan.29) would target 121.85 (76.4% Fibo of 123.67-115.96) en route to 123.67 (high Dec.2).

The greenback keeps depreciating vs. the Japanese yen today, with USD/JPY now meandering the area of session lows near 120.20…

(Market News Provided by FXstreet)

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OverviewThe gold price managed to touch the level of 1,130.60, which represents 61.8% Fibonacci level for the decline measured from 1,182.80 to 1,046.20. This signals that the price is about to to resume the bearish wave that is moving inside the main …

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FXStreet (Córdoba) – EUR/GBP continues to trade above 0.7550 on Tuesday. The euro is rising against the pound after falling during the previous three trading days.

EUR/GBP again with support around 0.7540

Yesterday the pair dropped constantly during the American session and bottomed at 0.7540. The mentioned area capped the decline like it did last week. From there EUR/GBP bounced to the upside.

Weak economic data from the United Kingdom favored the euro on Tuesday during the European session. The pair peaked at 0.7617, level located less than 10 pips below yesterday’s highs. Afterwards, it pulled back finding support at the 20-hour moving average that currently strands at 0.7570.

The pair is trading around 0.7580/85, almost 40 pips above the level it closed yesterday.

Between 0.7540 and a dynamic resistance

Since the beginning of December EUR/GBP has been rising constantly. The rally brought the price from 0.7000 to 0.7755 (Jan 20 high). After toping it failed to hold above 0.7700 and make a bearish correction.

The area around 0.7540 become a key support of the correction. A break lower could open the doors for an extension of the movement. While on the opposite direction the key resistance is a downtrend line coming from January highs that currently is located around 0.7610/20; a break higher could strengthen the euro and change the short-term tone of the pair.

EUR/GBP continues to trade above 0.7550 on Tuesday. The euro is rising against the pound after falling during the previous three trading days.

(Market News Provided by FXstreet)

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FXStreet (Córdoba) – Gold climbed to a fresh 3-month high on Tuesday as the yellow metal was underpinned by safe-haven demand amid risk aversion.

Spot gold rose above the previous day’s peak and reached a fresh high at $1,1130 an ounce, last seen on November 3.

The metal is rising for third day in a row as it extends a broader bounce from multi-year lows struck in December.

Stocks and oil prices fell sharply on Tuesday sparking risk aversion across financial markets, which continues as the main driver in the absence of major economic data or events.

Gold climbed to a fresh 3-month high on Tuesday as the yellow metal was underpinned by safe-haven demand amid risk aversion.

(Market News Provided by FXstreet)

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FXStreet (Mumbai) – The stock markets in the US are painted in red as investors took cues from the oil-driven risk aversion in the European equity markets.

At the time of writing, the Dow Jones Industrial Average (DJIA) traded 264 points or 1.6% lower on the day. The S&P 500 and the Nasdaq were down atleast 1.2% each. The DJIA Oil and Gas index was down 3.3%. All major sectors were trading in the red.

Shares in Chevron and Exxon Mobil were down 3% each. Goldman Sachs was down 3.6%.

The European stocks extended losses following a weak opening on the Wall Street. The Euro Stoxx 50 index now trades 2.7% lower on the day.

The stock markets in the US are painted in red as investors took cues from the oil-driven risk aversion in the European equity markets.

(Market News Provided by FXstreet)

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FXStreet (Edinburgh) – Crude oil prices are falling further on Tuesday, currently hovering over the critical $30.00 handle per barrel.WTI weaker on OPEC, IranOngoing concerns over the current supply glut plus the likeliness of Iran pumping more oil int…

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Russia’s Energy Ministry released its oil output data on Tuesday. Oil output in Russia increased by 1.5% to 10.88 million barrels per day (bpd) in January from 10.83 million bpd in December. Bashneft was the main contributor in January. The output ros…

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Russia’s Energy Ministry released its oil output data on Tuesday. Oil output in Russia increased by 1.5% to 10.88 million barrels per day (bpd) in January from 10.83 million bpd in December. Bashneft was the main contributor in January. The output ros…

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