Scotiabank noted the rally in the euro on
Key Quotes:
"The flash headline estimate dropped –0.6% y/y (consensus was for –0.5%y/y) and core fell to 0.6%y/y, a fresh record low—see chart. EUR’s reaction, rallying from 1.1320 to 1.1360, suggests some positive inflows into EUR and a hesitancy to short EUR from here."
"The bar for further ECB action is likely fairly high; while the risks to the USD side of the equation are increasing. The technical picture has also shifted to a more mixed outlook (the MACD is flirting with a buy signal), it should be seen as a warning of a temporary period of stability in EUR. However, we expect the trend in EUR to still downward throughout 2015."
"EUR/USD short‐term technicals: bearish—but shifting towards neutral. The chart warns of a short period of range trading between the recent low of 1.1098 and high of 1.1423, these levels can serve as support and resistance and a break would warn of further upside or downside pressure."
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Saturday, 31 January 2015
EURUSD OUTLOOK
Currency pair: EUR/USD
Sentiment: Bearish
Trend Index : 0
Market Focus:on thursday trade set up i focussed on selling opportunities on the EUR/USD.
Fundamentals: The Fed came across more hawkish than investors had thought as the FOMC Statement was released yesterday showing the US is the only developed nation central bank that is considering raising rates this year. The Fed had a positive view of the economy as a whole saying oil prices would have a positive impact on households however they would take into account international developments as an uncertain global outlook remains.
Technicals: I am still looking for selling opportunities on any decent rallies by monday, with a decent resistance area eyed out at 1.1342.
Sentiment: Bearish
Trend Index : 0
Market Focus:on thursday trade set up i focussed on selling opportunities on the EUR/USD.
Fundamentals: The Fed came across more hawkish than investors had thought as the FOMC Statement was released yesterday showing the US is the only developed nation central bank that is considering raising rates this year. The Fed had a positive view of the economy as a whole saying oil prices would have a positive impact on households however they would take into account international developments as an uncertain global outlook remains.
Technicals: I am still looking for selling opportunities on any decent rallies by monday, with a decent resistance area eyed out at 1.1342.
Friday, 30 January 2015
US GDP slows down in Q4 2014
As per the preliminary data released by the Bureau of Economic Analysis, the real gross domestic product (GDP) increased at an annual rate of 2.6% in Q4 2014, missing the expectation of 3.0%, and down from the Q3 growth rate of 5.00%.
The economy witnessed positive contributions from from personal consumption, which rose 4.3%, beating the expected rise of 4.0%. Other major contributors were private inventory investment, exports. On the other hand, the growth rate was pressurized by an upturn in imports, a downturn in federal government spending, and decelerations in nonresidential fixed investment.
Meanwhile, the GDP price index, decreased 0.3% in the fourth quarter, in contrast to an increase of 1.4 % in the third.
The economy witnessed positive contributions from from personal consumption, which rose 4.3%, beating the expected rise of 4.0%. Other major contributors were private inventory investment, exports. On the other hand, the growth rate was pressurized by an upturn in imports, a downturn in federal government spending, and decelerations in nonresidential fixed investment.
Meanwhile, the GDP price index, decreased 0.3% in the fourth quarter, in contrast to an increase of 1.4 % in the third.
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