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Devata Tseng

GBPUSD Tests Downtrend Resistance

GBPUSD Sterling broke the major resistances at 1.3200 and 1.3230 this morning as a result of the earlier weakening of the dollar. The price further tested the next resistances at 1.3250 then pulled back as the dollar is turning strong, weighing on GBPUSD. It is currently oscillating around the level at 1.3230. On the daily chart, GBPUSD is near the downtrend line major resistance level at 1.3250. In addition, the daily time frame KD is above 80, suggesting a retracement. The Brexit may not be ...

Devata Tseng

Silver Turns Bearish after Hitting a 7-Week Low

Silver Spot On Monday 22nd Aug, a rebound of the dollar weighed on silver, resulted from the hawkish comments made by Fed Vice Chairman Fischer. Silver spot opened low and broke the down trend channel, plunged to the intra-day low of 18.70, from the high of 19.761 on 19th Aug, a 5.4% fall. It has formed a head and shoulder pattern, suggesting increased upside selling pressure. Yet the daily KD indicator is at below 20, and the daily CCI is also at a low level, suggesting a rebound prior to a ...

Devata Tseng

Can DAX Break the Channel Resistance ?

German and Eurozone Manufacturing, Services and Composite PMIs for Aug, will be released at 08:30 and 09:00 GMT+1 on Tue 23rd Aug. Although the German Manufacturing PMI in July fell slightly to 53.8, from 54.5 in June, it was the strongest expansion in the past four and a half years. In addition, output grew at the fastest pace since Apr 2014, helped by increased demand and the processing of inventories. Input costs rose for the first time in a year. German Services PMI rose to 54.4 in July, ...

Devata Tseng

Oil Nears Major Resistance

Spot WTI WTI hit seven-week high of 49.40 today. It has rallied 24.6% from 39.65 since 3rd August. The FOMC’s dovish minutes, released on Wednesday, resulting in the dollar has weakened across the board. The weakness of the dollar boosted oil prices, in addition, the fall of US crude oil inventories reported on Wednesday also gave it a lift. Most importantly, the recent rally is now being seen as an overreaction to OPEC’s freeze talk. Fundamentally, the oversupply has still been the major ...

Devata Tseng

Sterling Surges as UK Retail Sales Outperforms

GBPUSD UK Retail Sales (YoY and MoM) and Core Retail Sales figures (YoY and MoM) in July, released earlier today, outperformed. Sterling strengthened across the board. Retail sales (MoM) rose to 1.4% in July, from -0.9% in June, beating expectations of 0.2%. Retail sales (YoY) rose to 5.9% in July, from 4.3% in June, beating expectations of 4.2%. Core retail sales (MoM) increased by 1.5% in July, from -0.9% in June, beating expectations of 0.4%. Core retail sales (YoY) increased by 5.4% in ...

Devata Tseng

All Eyes on the Fed to Relieve Dollar Jitters

The Dollar Index Future (DXY) On Tue 16th Aug, the dollar index future (September) extended the weakness it has shown since Friday. A result of the disappointing retail sales report, the lowered market expectations for a Fed rate hike, and the dovish statement made by John Williams, the president of San Francisco Fed. The dollar index fell like a stone, from the intra-day high of 95.605 to a post Brexit referendum low of 94.355, a 1.31% fall, the second biggest intra-day fall post Brexit ...

Devata Tseng

Sterling Rallies helped by First Positive Post Referendum CPI

The initial post-referendum UK economic data for July was released this morning and the rest will be released later this week. The CPI figures released, were above or in line with expectations. The YoY CPI figure rose to 0.6% in July, from 0.5% in June. The YoY Core CPI was 1.3% in July, from 1.4% in June, in line with expectations. Although the MoM CPI fell to -0.1% in July, from 0.2% in June, it was still in line with expectations. The first set of CPI figures have, to some extent, eased ...

Devata Tseng

Dollar Index Reversed Sharply After Testing Significant Support

The Dollar Index (DXY) Economic data released on Friday 12th Aug underperformed, against the market expectations. The Retail Sales figure showed no growth in July, compared to a revised, robust, 0.8% gain in June. The Core Retail Sales reading plunged to -0.3% in July from, a strong, revised 0.9% in June. The slide of retail sales figures in July was caused by a decrease in consumer spending on clothing, electronics, restaurants and bars. The consumer spending on food and drinks has seen the ...

Devata Tseng

Dollar Strength Depends on US Retail Sales

The S & P 500 Index The S & P 500 and Dow Jones indices both hit new record highs at 2187.92 and 18637 points respectively, on Thursday 11th Aug, lifted by the department store Macy’s strong quarterly sales and the rebound in the price of oil. Strong retail earnings bolstered market sentiment. The S & P 500 index has been moving upwards in a moderate pace since 14th July. Keep an eye on the US Retail Sales (MoM), the Core Retail Sales (MoM), and the PPI figures(MoM), released on ...