Dollar/yen continues its upwards move. After a short pause that followed the mixed Non-Farm Payrolls, the pair continues riding the tiger along the upwards support line and hits a major barrier. 114.37 is the cycle high. The level was reached in May and the pair could not advance from there. Two months later, USD/JPY hit a high of 114.30, very close to that peak. After the initial rush, we had a small retracement, but the battle continues. One of the most recent drivers of the pair to the upside is a speech from BOJ Governor Kuroda. He said that the Bank will continue buying as many bonds as needed until the 2% inflation target is achieved. ...
Share markets in India continued their upward climb in afternoon trade with both Sensex and Nifty closing a fresh all-time high. At the closing bell, the BSE Sensex closed higher by 355 points. While, the NSE Nifty finished higher by 97 points. Meanwhile, the S&P BSE Midcap Index ended up by 0.7% while the S&P BSE Small Cap Index ended up by 0.4%. Barring FMCG stocks, all sectoral indices finished the day in green with information technology sector and PSU sector witnessing maximum buying interest. Meanwhile, trading was disrupted at India’s National Stock Exchange on Monday morning, after price quotations for indi...
Red ink dominated the first week of trading in July. The main exception: equities in the US, which edged higher. Otherwise, across-the-board losses weighed on the major asset classes, based on a set of exchange-traded products. US stocks bucked last week’s selling wave, albeit only slightly. Vanguard Total Stock Market (VTI) was fractionally higher, inching up six basis points. The rest of the field lost ground for the trading week through July 7. The biggest loser: real estate investment trusts (REITs). Vanguard REIT (VNQ) fell for a second straight week, dropping 1.5%. The outlook for higher interest rates is a factor giving investors p...
Trading opportunities for the currency pair: The price is trading around the upper boundaries of the A-A and C-C channels. On the monthly timeframe, there’s a risk of falling to 1.25, but the euro is expected to strengthen significantly from September onwards. In connection with this, the range from 1.1475 to 1.1595 will be used for selling euros, with targets of 1.12 and 1.0925. If, from September, the price continues to trade above 1.1290, it would be wise to close all short positions. In such a case, buyers will push the price to 1.25 to the upper boundary of the D-D channel. If we get a breakout of the C-C channel in July, it’s worth...
In a quiet overnight session, S&P 500 futures are fractionally in the green (2,426, +0.2%) with European and Asian stocks as oil drops the second day after an initial ramp higher amid speculation that Libya and Nigeria may be asked to cap their production. Nasdaq 100 Index is again higher, following the biggest daily advance in more than a week, up 0.4% as of 6:20 a.m. in New York. With Friday’s jobs data seen as largely favorable and the lack of wage growth expected to keep the Fed subdued, the focus is turning to Janet Yellen’s semi-annual testimony on monetary policy and a meeting of Canada’s central bank on Wednesday...
USD/JPY The US dollar rallied during the day on Friday, as the jobs number was better than anticipated. This has the USD/JPY pair reaching above the 114 level. The market looks likely to pull back, but at this point I think there’s plenty of support near the 113 handle. The 115 level above is massively resistive, but ultimately if we can break above there, the longer-term uptrend will continue to the upside. I think that this is a “buy only” market, so I’m buying the dips as they appear. Even if we break down below the 113 handle, I think the 112-level underneath is even more supportive. The bond markets are starting to spread interes...
The US dollar has begun the new week on a firm note, but the decline in yields limit the gains. The US 10-year yield is pulling back from the 2.40% area, which is it not been able to sustain gains above since Q1. European bond yields are also 1-3 basis points lower today after jumping last week. Equities are mostly firmer. The MSCI Asia Pacific Index, which fell to a five-week low at the end of last week, rose by 0.3%. Greater China (including Hong Kong and Taiwan) shares fell, but Japan, Korea, Index, and Australian share prices rose. The Dow Jones Stoxx 600 gapped higher at the open today. It remains unfilled through the European mornin...
You can almost hear the announcer for the movie trailer; “In a world stricken by financial crisis, a country plagued by spiraling deficits and cities on the verge of collapse – a war is being waged; gauntlet’s thrown down and at the heart of it all; two dead white guys battling over the fate of the economy.” While I am not so sure it would actually make a great movie to watch – it is the ongoing saga we will continue to witness unfold over the next decade. While the video below is entertaining, it does lay out the key differences between Keynesian and Austrian economic theories. Just last week, the Federal Reserve released a report...
AUD/USD has been moving in a very narrow range. The ATR for last 14 days is 48 pips and it suggest slow moving price. If the price managed to stay below 0.7645 that is the ATR projected high and W H3 camarilla, bears would have an upper hand. At this point we might see a rejection from the POC 0.7600-15 ( D H3, 38.2, inner trend line, ATR pivot) towards 0.7570 and eventually 0.7550. W L3 – Weekly Camarilla Pivot (Weekly Interim Support) W H3 – Weekly Camarilla Pivot (Weekly Interim Resistance) W H4 – Weekly Camarilla Pivot (Strong Weekly Resistance) D H4 – Daily Camarilla Pivot (Very Strong Daily Resistance) D L3 – D...
Micron Technology, Inc. (Nasdaq:MU) stock has already exploded after two years of poor performance. On a one-year basis, the stock has moved from just $12 to the current price of just over $30. Not surprisingly, given the rapid gain, some investors are nervous that the stock is moving into overvalued territory and that there is limited upside potential left. These bears (see, for example KeyBanc’s Weston Twigg) warn that the stock will crash if demand for Micron’s DRAM and NAND memory chips cool off. However here are three reasons why bulls believe the stock still has further room to grow: 1. Ongoing Fundamental Momentum – Micron’s ...