Dollar strenghtens in quiet trading

27 December, 2016

The post-Christmas trading started quietly with the USD that slightly strenghtens to its major peers. The weakest currency on the fx market is now the Japanese Yen as the USDJPY defended a support at 117.00.

The yen halted a four-day advance, while oil continued its longest winning streak in four months as some major financial markets reopened after a long holiday weekend.The yen slipped after climbing 0.7 percent over the previous four sessions. As for the other markets,   stocks in Japan and China fluctuated. Financial markets in Australia, New Zealand and Hong Kong are shut on Tuesday, while those in the U.S. and most of Europe will resume trading after a holiday Monday. Trading is expected to be thin this week as financial markets close out a volatile year.

Japanese consumer prices rose for the second consecutive month in November, although core prices continued to decline in the latest sign of strong deflationary headwinds for the world’s third-largest economy. The national consumer price index rose at an annualized 0.5% in November, following a 0.1% year-over-year gain in October, the national statistics bureau reported on Tuesday. The national CPI index in October recorded its first increase in nine months.

Profits earned by China’s industrial firms continued to accelerate in November, rising 14.5% from a year earlier, the National Bureau of Statistics  said on Tuesday. The latest industrial profit figure of 774.6 billion yuan  which covers large enterprises with annual revenues of more than 20 million yuan from their main operations, follows a 9.8% year on year increase in October and a 7.7% rise in September. Overall, industrial profits climbed 9.4% in the first 11 months from the same period a year earlier, to 6.03 trillion yuan, up from an 8.6% rise in the first 10 months of the year.

The European Central Bank has told Monte dei Paschi di Siena that its capital shortfall is €8.8 billion, significantly raising the amount the Italian government will have to deploy to rescue the troubled lender. In a statement Monday evening, Monte dei Paschi said that the ECB said the bank’s capital shortfall is far higher than the €5 billion expected when the government organized a rescue last week of Italy’s No. 3 lender.

The NZDUSD is on on the back foot today after the cross re-tested previously broken support. Looking at the D1 chart it’s hart to be optimistic on the pair’s future. A clear break below 0.69 suggests more downisde ahead with a focus at 0.66. Buyers will probably re-emerge close to 0.6750, but the strongest supported is the one that is located 150 pips lower.

Source link  
A massive rebound on GBPUSD

Yesterday we observed a massive drop and rebound on GBP, the whole initial decline was erased. As a reminder, yesterday GBP dropped almost by 1% against the USD...

Bearish engulfing on GBP, weaker data

GBPUSD turned lower after yesterday’s bearish engulfing formed within a crucial resistance area, the upper bound of the consolidation at 1.27. There is a chance for a three outside down pattern and a distinct leg lower...

Great start of the year for European manufacturers

According to Markit Data, Eurozone Manufacturing PMI hit 69-month high at start of 2017. The final Eurozone manufacturing PMI came at 55.2 in January with flash reading at 55.1 and the final reading for December at 54.9. The top growth countries were...

DAX took the Trump’s hit

Global Stocks slid Monday after President Donald Trump restricted immigration from seven Muslim-majority nations, a move that underscored the administration’s proposals to erect barriers to foreign trade. That has also taken its toll on the DAX index that ended yesterday’s session more than 1% lower...

A huge disappointment in the UK data

UK retail sales fell most since 2012. We see he fastest pace of decline in almost five years in December. It is due to sales of... pretty much everything from household goods to clothing and food...

China's FX reserves fell

Unsurprisingly, FX reserves in China fell in December. However they stay above the pivotal level of 3tn USD. Yet it is probably a matter of time until the level is broken below as capital outflows are likely to be continued...

Pullback of the dollar

The dollar has lost its shine along with correction of US yields after a strong auction yesterday evening. This sparked a broad negative sentiment towards the US dollar which is still present...

USD surges, eurodollar collapses on FED hawkish stance

The USD dollar continued its march higher after the FOMC gave no reason to sell the dollar. Moves were sharp, the dollar gained significantly and that led to some historical moves on both currencies and interest rates...

Stay cautious about these reflation trades

We have recently described you a potential reflation trend. The data on price and wage pressures recently released in China and Germany fit the theme of global reflation - consumer and producer prices finally heading north which with time translates to wage pressures...

In the past 24 hours Bitcoin has lost -0.03% and reached $3624.78017325. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -0.5573% and is now at $1.1277. Start trading and making money on Forex today.

In the past 7 days Ethereum has gained 4.53% and is now at $122.152484793. Have the most popular cryptocurrencies compared online 24/7.

Top Brokers offering Forex Market Analysis

Forex Currencies Forecasts

Top 10 Forex Brokers 2019

# Broker Review
5FIBO GroupFIBO Group84%
10FP MarketsFP Markets70%