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Devata Tseng

Economic Figures Support GBPUSD

GBPUSD has seen a substantial fall of 1.155% from 6th to 8th December, after testing the resistance level at 1.2750. Yesterday the price has rebounded after testing the support level at 1.2550. This morning we have seen the release of a series of the UK figures. The Consumer Inflation Expectations was 2.8%, surpassed the previous figure of 2.2%. Goods Trade Balance (Oct) was £-9.71 bln, outperformed the expectations of £-11.8 bln and the previous figure of £-13.83 bln, which is the best figure ...

Devata Tseng

EURUSD Trades Below Significant Resistance Before ECB Announcement

The Italian referendum weighed on EUR/USD, fell to a year low of 1.0506 on 5th December. It was followed a quick recovery, as a result of the rebound of the Euro after testing the significant support level at 1.0500. Yet it retraced after testing the significant resistance level at 1.0800. On 6th December, EUR/USD has rebounded after testing the support level at 1.0700 with strong bullish momentum, as a result of the weakening of the dollar. On the 4 hourly chart, the price has been held above ...

Simon Smith

Tapering and extending

The main challenge for markets today will be steering through the messages that emerge from the ECB meeting and press conference. Whereas the Fed meeting next week is seen as a near certainty in terms of its outcome, this is not the same for the ECB. Under the current asset purchase program, which was started back in 2015, the ECB’s buying of bonds is due to end in March of next year. The indications are that this will be extended beyond this date. The two questions are by how long and how ...

Devata Tseng

Australian Q3 GDP Hit Aussie, Yet Holds Above Uptrend Line Support

AUDUSD has seen a significant retracement since the US presidential election, as a result of the strengthening of the dollar. We saw the release of the Australian Q3 GDP YoY figure overnight, was 1.8%, much lower than expectations of 2.5% and the previous figure of 3.3%. The weak GDP figure weighed on the Aussie, it has seen a sharp fall of 48 points after the release of the figure, breaking the support level at 0.7450. Yet the price rebounded after testing the downside uptrend support line. ...

Simon Smith

Calming down

Compared to the volatility seen Monday, yesterday was a much calmer day in markets. That said, there was an underlying bid tone to the dollar, which was most prevalent against the pound, with cable pushing back below the 1.27 level into the European close. The single currency was not that far behind, touching the 1.07 level on EURUSD before recovering modestly thereafter. The ranges have been very tight overnight, reflecting the fact that the main risk events of the year have now passed and ...

Devata Tseng

Can DAX and Euro 50 Remain Bullish in the Resistance Zones ?

The outcome of the Italian constitutional referendum drove the DAX index down to a low of 10426.60 yesterday, yet it was followed by a sharp reversal, hitting a week high of 10743.25. The intraday volatility was about 316 points, or a 3.04% rebound. Yet the current price is trading around the near term major resistance level at 10700. The short term major resistance zone is between 10700 – 10800, the selling pressure in this range is heavy, the bullish attempt is likely to be restrained here. ...

Simon Smith

Making Sense

There was a lot of head scratching yesterday as markets digested the Italian referendum result. As with Brexit and the US election, conventional thinking appeared to go out of the window. By the European morning, we had seen EURUSD recover the opening move lower seen at the start of the Asian session. Indeed, having been down 1% early on, the single currency ended the day more than 1% higher vs. Friday’s close. The Italian President asked PM Renzi to stay on to pass the budget early next year, ...

Devata Tseng

EURUSD Rebounds Sharply After the Hit of Italian Referendum

The Italian referendum was held yesterday, the outcome turned out to be rejection, in line with polls. The Italian PM Renzi subsequently announced his resignation. During the opening of the Asian session on Monday 5th December, the outcome of the referendum weighed on EUR/USD, fell to a year low of 1.0506. Yet it was followed a quick recovery, as a result of the rebound of the Euro after testing the significant support level at 1.0500. The price hit an intra-day high of 1.0729, broke the ...

FxProUpdates

[Update] FxPro Margin Requirements Return to Normal

Prior to the 2016 Italian Constitutional Referendum, which was held on Sunday, December 4, 2016, we had modified the margin requirements on European spot indices. We would like to inform you that margin requirements across ALL trading instruments have now returned to their original levels.