fx

West Texas Intermediate futures for March delivery declined to $33.14 (-1.43%), while Brent crude fell to $35.44 (-1.53%) amid weak economic data from China. According to an official report released today, activity in China’s manufacturing sector contr…

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Gold price is moving higher inside the short-term upward sloping channel. A trend remains bullish as long as the price is above last week’s low of $1,108. The area of $1,130-35 is a bullish target now.Blue lines – bullish short-term channelBlack lines …

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Gold climbed to $1,122.20 (+0.52%) amid uncertainty over the global economy and signs of weakness in the Chinese economy. China Federation of Logistics and Purchasing reported on Monday that the country’s Manufacturing PMI declined to 49.4 in January c…

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EUR / USD Resistance levels (open interest**, contracts) $1.0931 (5211) $1.0901 (2283) $1.0878 (2071) Price at time of writing this review: $1.0847 Support levels (open interest**, contracts): $1.0788 (5374) $1.0760 (10176) $1.0726 (…

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U.S. stock indices rose on Friday as market participants thought that Bank of Japan’s decision to introduce negative rates could interfere with the Federal Reserve’s plans to gradually raise interest rates. The Dow Jones Industrial Average gained 396…

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EUR/USD struggling with 10-DMA in early Europe, PMIs eyed

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FXStreet (Mumbai) – A renewed rally in the EUR/USD pair lost steam at 10-DMA, with the major stalling its recovery and now consolidates the upside in early Europe before the next leg higher.

EUR/USD holding on above 1.08 handle

Currently, EUR/USD trades 0.12% higher at 1.0846, retreating from fresh session highs of 1.0853 reached earlier in Asia. The main currency pair remains underpinned on the back of persisting uncertain global environment amid renewed China slowdown worries and resumption of the dominant downtrend in the oil prices. While sharp losses in the Chinese equities also keep the funding currency euro buoyed.

However, the upside remains capped as markets remain cautious ahead of plenty of risk events from both continents in the week ahead, with the most influential payrolls data from the US eagerly awaited. While the monetary policy divergence between the Fed and ECB also continues to keep a lid on the prices, especially after BOJ’s unexpected easing fanning hopes for ECB stimulus too at its March meeting.

Later today, a raft of final manufacturing PMI releases from across the Euro area economies, while from the US, the ISM manufacturing PMI as well core PCE price index will be reported.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance is seen at 1.0870/78 (1h 200 & 100-SMA). A break beyond the last, doors will open for a test of 1.0900/12 (round number/ 100-DMA). On the flip side, the immediate support is placed at 1.0809/00 (Jan 29 Low), below which 1.0787/86 (Jan 22 & 25 Low) could be tested.

A renewed rally in the EUR/USD pair lost steam at 10-DMA, with the major stalling its recovery and now consolidates the upside in early Europe before the next leg higher.

(Market News Provided by FXstreet)

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FXStreet (Mumbai) – The USD/JPY pair is seen
consolidating in a 20-pips range since mid-Asia, unable to break through the stiff resistance placed near the mid-point of 121 handle, where the 200-DMA coincides.

USD/JPY struggles below 200-DMA

The USD/JPY pair finds fresh bids on its every attempt to the downside near 121.20 levels and swings back higher towards 121.40 region as the rallying Japanese stocks continue to cushion the downside in the major. Japan’s Nikkei 225 index is continuing its post-BOJ strong run and now jumps +2% towards closing hours.

However, the major remains confined below the 200-DMA near 121.50 as the sentiment around the risk-currency US dollar remains dented in wake of the latest weak China manufacturing gauge and falling oil prices. The USD index trades marginally lower at 99.55.

Focus now shifts towards a fresh batch of US economic data in the week ahead for further cues on the Fed’s rate hike outlook, especially after last week’s dataflow disappointed markets. The US ISM manufacturing PMI and core PCE price index will be closely watched later today.

USD/JPY Technical levels to watch

In terms of technicals, the immediate resistance is located at 121.47/50 (200-DMA/ round number). A break above the last, the major could test 122.22 (Dec 11 High). While to the downside, the immediate support is located at 121 (psychological levels/ daily S2) below which 120.73 (100-DMA) would be tested.

The USD/JPY pair is seen consolidating in a 20-pips range since mid-Asia, unable to break through the stiff resistance placed near the mid-point of 121 handle, where the 200-DMA coincides.

(Market News Provided by FXstreet)

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FXStreet (Delhi) – Imre Speizer, Senior Market Strategist at Westpac, notes that the market pricing for the RBNZ slipped further, with a terminal rate of 2.21% now price in, i.e. a 100% probability the RBNZ will cut once more this year, and a 16% probability it will cut twice.

Key Quotes

“We now expect the RBNZ to cut by 25bp to 2.25% in March and again to 2.0% in June (a change from June and August) following the RBNZ’s OCR Review last week which made its easing bias explicit and as unconditional as a bias could be.

The next major monetary policy event will be the 3 Feb annual speech by Governor Wheeler, and Assistant Governor McDermott’s speech the next day on policy guidance. We will be looking for clues on timing.”

Imre Speizer, Senior Market Strategist at Westpac, notes that the market pricing for the RBNZ slipped further, with a terminal rate of 2.21% now price in, i.e. a 100% probability the RBNZ will cut once more this year, and a 16% probability it will cut twice.

(Market News Provided by FXstreet)

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