lundi 16 mars 2015
Still looking to use rallies on EUR/USD and GBP/USD as a chance to sell
Posted on 05:20 by nice news
Market Overview
Financial markets continued to trade on the dollar strength story on Friday. This is a story that is likely to dominate decision making in front of this week’s FOMC meeting. With the dollar soaring, the oil price has again come under considerable pressure. The WTI price is now testing the 6 year low price of $43.58 that was hit in January. Equity markets have been under pressure as a result, and Wall Street was again sharply lower on Friday, with the S&P 500 closing 0.6% lower. Asian markets have been mixed to positive on Monday, with comments from Chinese Premier Li suggesting that there could be more easing from the People’s Bank of China in the offing. European markets are looking to bounce back a touch in the early exchanges today.
In forex trading we see some of the forex major bouncing back against the dollar after an incredibly tough week last week. After closing below $1.0500 last Friday, the euro has rebounded slightly, although there is little sign that there is any sustained recovery on the cards.
Traders will be looking out for US Industrial Production at 1315GMT which is expected to show a slight increase in the month on month production to +0.3%, whilst capacity utilization is expected to improve slightly to 79.5 (from 79.4). There is also the US National Association of Home Buyers index at 1400GMT which is forecast to improve to 57 from 55.
Chart of the Day – USD/CAD
The Loonie has been one of the better performing major currencies over the past few weeks, but even that is now succumbing to the onslaught from the strength of the US dollar. The pair had been trading in a broad range, however saw a move to a 6 year high on Friday, breaking out above $1.2800. The momentum indicators are in strong long term configuration but as yet are not confirming the breakout and this leaves a little question mark over the move, especially with the Stochastics turning
Financial markets continued to trade on the dollar strength story on Friday. This is a story that is likely to dominate decision making in front of this week’s FOMC meeting. With the dollar soaring, the oil price has again come under considerable pressure. The WTI price is now testing the 6 year low price of $43.58 that was hit in January. Equity markets have been under pressure as a result, and Wall Street was again sharply lower on Friday, with the S&P 500 closing 0.6% lower. Asian markets have been mixed to positive on Monday, with comments from Chinese Premier Li suggesting that there could be more easing from the People’s Bank of China in the offing. European markets are looking to bounce back a touch in the early exchanges today.
In forex trading we see some of the forex major bouncing back against the dollar after an incredibly tough week last week. After closing below $1.0500 last Friday, the euro has rebounded slightly, although there is little sign that there is any sustained recovery on the cards.
Traders will be looking out for US Industrial Production at 1315GMT which is expected to show a slight increase in the month on month production to +0.3%, whilst capacity utilization is expected to improve slightly to 79.5 (from 79.4). There is also the US National Association of Home Buyers index at 1400GMT which is forecast to improve to 57 from 55.
Chart of the Day – USD/CAD
The Loonie has been one of the better performing major currencies over the past few weeks, but even that is now succumbing to the onslaught from the strength of the US dollar. The pair had been trading in a broad range, however saw a move to a 6 year high on Friday, breaking out above $1.2800. The momentum indicators are in strong long term configuration but as yet are not confirming the breakout and this leaves a little question mark over the move, especially with the Stochastics turning
Still looking to use rallies on EUR/USD and GBP/USD as a chance to sell
Inscription à :
Publier les commentaires (Atom)
0 commentaires:
Enregistrer un commentaire