Analysts at Westpac explained they they have added an EUR/USD short.Key Quotes:”Last week’s two bearish signals out of three producing a sell on strength order that was filled at 1.0995 (stop at 1.1110).We are wary that Draghi will struggle to leapfrog…

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GBP/USD‘s bid is fragile and has run in to supply, meeting resistance at the highs of the end of Feb rally from below 1.3834 at 1.4282.

GBP/USD may have made a recovery on the greenback’s weakness, but risks to the downside still outweigh on a fundamental basis – just look at the opinion polls in respect to a Brexit for example.

Analysts at Rabobank explained:”The average of six polls between February 13 and 25 indicated that the ‘Remain’ vote was ahead with 55% vs. 45%. Given reports that the amount of undecided voters is still large, the UK’s EU vote could still go either way, ” and added, “On the basis that the political uncertainty is a currency negative factor, we continue to see downside risk for sterling on a 3 mth view. Our forecasts that GBP can recover to GBP/USD1.50 and 0.70 on a 12 mth view assumes that the June 23 referendum will result in a ‘Remain’ vote.”

GBP/USD levels

GBP/USD is now testing below the 50 sma on the 1hr sticks and targets a break of the 10 sma on the same time frame at 1.4170 for a run at 1.4080 where the recovery started to consolidate on the 2nd March. S3 at 1.4129 maybe a fragile level support before such an objective can be met. To the upside, 1.438 and R2 is compelling where early Feb’s bearish attempts were supported, ahead of 1.4423 and R3.

GBP/USD’s bid is fragile and has run in to supply, meeting resistance at the highs of the end of Feb rally from below 1.3834 at 1.4282.

(Market News Provided by FXstreet)

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Analysts at Scotiabank explained that economic weakness remains firmly in place in Japan.

Key Quotes:

“The country’s real GDP growth returned to negative territory in the final quarter of 2015, as output declined by 0.4% q/q (+0.7% y/y) following a 0.3% (1.6% y/y) expansion in the prior three month period. The main factor behind the weak outcome was a struggling Japanese consumer.

In 2015 as a whole, the economy grew by 0.5%. We have revised our real GDP growth forecasts for Japan downward and now expect the economy to expand by 0.7% in 2016 and 0.6% in 2017 (compared with the prior forecasts of 1.1% and 0.8%, respectively).

The Bank of Japan will maintain an accommodative monetary policy in place for the foreseeable future and will likely consider additional stimulus measures to complement the existing policy program — Quantitative and Qualitative Monetary Easing with a Negative Interest Rate — which applies an interest rate of -0.1% to financial institutions’ deposits at the central bank.

Persistent economic fragility will also put the implementation of the consumption tax rate hike (scheduled for April 2017) at risk. Headline inflation was 0% y/y in January, while core prices — excluding food and energy — increased by 0.7% y/y. We expect the headline rate to accelerate only slightly to 0.5% y/y by the end of this year.”

Analysts at Scotiabank explained that economic weakness remains firmly in place in Japan.

(Market News Provided by FXstreet)

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Analysts at Scotiabank explained that GBP ended February at fresh multi-year lows.Key Quotes:”Trading around crisis levels last observed in early 2009. GBP has been under a tremendous amount of pressure, its decline driven sentiment and uncertainty sur…

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USD/CHF has bounced back to the flat line, erasing previous intraday losses as the greenback trades mixed across the board in a cautious environment.

USD/CHF bounced from the 0.9900 area and managed to climb back to the 0.9960 zone, before finding resistance. At time of writing, the pair is trading at 0.9950, virtually unchanged on the day.

USD/CHF technical levels

In terms of technical levels, next resistances are seen at 1.0010 (Mat¿r 7 high), 1.0037 (Feb 29 high), 1.0073 (Feb 4 high) and 1.1100 (psychological level). On the other hand, supports could be found at 0.9901 (20-day SMA), 0.9870 (Feb 26 low) and 0.9852 (Feb 24 & 17 lows).

USD/CHF has bounced back to the flat line, erasing previous intraday losses as the greenback trades mixed across the board in a cautious environment.

(Market News Provided by FXstreet)

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Analysts at Brown Brothers Harriman explained that a few weeks ago investors were bemoaning a new bear market for equities, and there was much ink spilled drawing parallels between now in 2008-2009.Key Quotes:”Falling commodities, weakening growth, and…

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Major U.S. stock-indexes lower on Tuesday as oil prices tumbled and weak Chinese data rekindled fears of a global economic slowdown led by the world’s second-biggest economy. China’s February trade performance was far worse than economists had expecte…

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