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Devata Tseng

Gold Prices Rally As Dollar Retraces

Gold strengthened as USD weakened yesterday, the dollar index fell from 97.225 to 96.760 because of two reasons. Firstly, although the Unemployment Claims and Existing Home Sales both beat expectations, the Philadelphia Federal Reserve Manufacturing Index underperformed falling to -2.9 compared to the expectation of 5.0 and the previous figure of 4.7, which is the worse figure since this February. Secondly, the dollar index slid as a corrective pullback because the KD indicator was high. The ...

Devata Tseng

USDJPY Reverses As Governor Kuroda Says No Need For Helicopter Money

On Thursday afternoon 21st July, the Bank of Japan Governor Haruhiko Kuroda stated that there is no need to stimulate the economy with ‘helicopter money’, meaning the bank is not going to print large sums of money and distributing it to the public. After the statement was made, the yen strengthened against the dollar. On the 4 hourly chart, the bullish trend of USDJPY immediately reversed, dipping from the intra-day high of 107.482 to the low of 105.413, a 1.92% drop, the downside uptrend ...

Devata Tseng

Oil Prices Jump After Ninth Weekly US Crude Inventory Drawdown

Oil prices rebound as the US commercial crude oil inventory figure was released yesterday. With a reduction of 2.3 million barrels compared to the expectation of 2.1 million. It is the ninth consecutive drop in the US crude stockpile. West Texas Intermediate, WTI Spot crude, has being oscillating in a downtrend channel since 9th June, forming the right shoulder of the head and shoulder pattern since 26th April. The pattern indicates that the upside selling pressure has increased over the ...

Simon Smith

ECB increasingly trapped

Being the head of the ECB is not an enviable task at this present moment in time and this will probably be all too apparent at today’s meeting of the ECB Governing Council. There are no solid expectations for a chance in policy, with the impact of the measure announced back in March still being monitored and assessed. On top of this though, there is the issue of how Brexit will potentially affect the Eurozone economy over the coming months and years. On top of this, there is the issue of QE, ...

Devata Tseng

Sterling Bounces By Labour Market Outperformance

The UK Claimant Count Change data released this morning was better than expected, and the GBP strengthened across the board. The number of people claiming for unemployment benefits slightly increased by 0.4K in June in the UK, comparing to the expectation of 3.5K and the previous figure of 12.2K. The unemployment rate also dropped to 4.9% compared to the previous figure of 5.0% in June, the lowest since 2005. Before the data was released, the GBPUSD was in a bearish trend, the price section ...

Devata Tseng

Euro Weakens As Dollar Strengthens

As the USD strengthened, EURUSD plunged this morning, breaking through the significant psychological level at 1.10, the lowest point since 28th June. On the 4 hourly chart, the current price section is below all the EMAs, oscillating between the first downside trend line support at 1.0989 and the 8 EMA resistance at 1.102. it is the same price section as between the middle and the lower bands of Bollinger Band indicator, suggesting that the trend is bearish. Yet the RSI and KD indicators are ...

Devata Tseng

USD Continues To Strengthen As Economic Data Outperformed

The US Building Permits and Housing Starts data released yesterday afternoon outperformed expectations. The former rose to 1.5% and the latter to 4.8% respectively, compared to the expectation of 0.6% and 0.5%, showing an increased demand in the US housing market. The dollar index future surged from 96.750 to an intra-day high of 97.180 on Tuesday 19th July, breaking out the significant range bound upside resistance at 96.80 post UK referendum. The price section has been moving alongside the ...

Simon Smith

The dollar moving ahead

The creeping dollar strength I talked about yesterday had continued, closing above the 24th June high on the dollar index. Over the past two sessions, it’s against sterling, the Aussie and the kiwi against which the dollar has appreciated the most. Whilst all those currencies have had their own reasons for weakening, there has also been a run of better data on the US side which has supported some of the rally. Yesterday it was housing starts and building permits data that came out stronger than ...

Devata Tseng

DAX Slides As German Economic Outlook Worsens

The German ZEW Economic Sentiment and German ZEW Current Conditions data released this morning underperformed, the former falling significantly 26.0 points to -6.8 compared to the previous figure of 19.20. The latter falling to 49.8 compared to the expectation of 51.8. The DAX spot index fell from 10052.46 to a low of 9920.96 this morning, a 1.31% drop. KD indicator crossed over from the level above 80, indicating a downtrend. Downside support at 8 EMA at 9919 on the daily chart, same level as ...