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  • Finance 0

    EUR/JPY Looks To Put In Temporary Bottom

    EUR/JPY: With price rejection now seen, EUR/JPY looks to put in temporary bottom. Unless the pair returns below the 128.26 level, we think a corrective recovery should occur. On the downside, support comes in at the 129.00 level where a break will aim at the 128.50 level. A turn below here will target the 128.00 level with a breach turning focus to the 127.50 level. Its daily RSI is bullish and pointing lower suggesting further weakness. Conversely, resistance lies at the 130.00 level. Further out, resistance comes in at the 130.50 level where a break if seen will threaten further upside towards the 131.00. Further out, resistance resides at ...
    On February 9, 2016 / By
  • Finance 0

    Morning Call For February 9, 2016

    OVERNIGHT MARKETS AND NEWS March E-mini S&Ps (ESH16 -0.86%) are down -0.40% and European stocks are down -0.59% at a 2-1/3 year low as global economic concerns intensified after German Dec industrial production unexpectedly fell by the most in 16 months and as Greece’s ASE Stock Index fell to the lowest since 1990. Greek debt concerns resurfaced as the Greek government remains at odds with creditors as bailout talks drag on. Greek bank stocks plunged after representatives from the IMF, the European Commission, the ECB and the European Stability Mechanism left Athens after a week of talks that failed to find an agreement for add...
    On February 9, 2016 / By
  • Finance 0

    Positive Australian Trajectory May Not Foreshadow AUD/USD Rebound

      Optimistic developments in the economy throughout the second half of 2015 created a multitude of tailwinds for Australian policymakers after aggressive actions taken earlier in the year saw gains trickle down to the real economy. However, despite the positive momentum in employment and growth, risks in the housing sector combined with inflation below the Central Bank target may see policy remain accommodative for some time to come. This contrasts with rising speculation that the US dollar may be set for a turnaround even though key FOMC voting members have taken a dovish turn in recent comments. While US fundamentals continue to point to a...
    On February 9, 2016 / By
  • Finance 0

    Global Markets Stunned By Biggest Japan Crash Since 2013; All Eyes On Deutsche Bank

    With China offline for the rest of the week, global markets have found a new Asian bogeyman in the face of Japan which as reported last night saw its markets crash, and the Yen soar, showing that less than 2 weeks after the BOJ unveiled NIRP, yet another central bank has lost control.   The Nikkei crashed 5.4%, the biggest drop since June 2013, plunging over 900 points to August 24 lows driven by collapsing bank stocks while the Yen soared to 114.50 overnight before the BoJ desperately tried to push the Yen lower, with London dealers reported the Japanese central bank was checking rates and levels to prompt short covering through 115.   B...
    On February 9, 2016 / By
  • Finance 0

    US Job Creation Sub-Par?

    US unemployment has declined to 4.9% in January, according to the latest figures from the US Department of Labor Statistics, dipping below the 5% level seen at the end of 2015. The figure ought to mean that all is well with the world’s largest economy since the figure is well below the long-term average figure of 5.82% (between 1948 and 2016 – although no single methodology for calculating the figure can be used since the goalposts move from time to time). In any event, unemployment is well below the high-water mark of 10.8% seen in 1982 and the peak of the Global Financial Crisis where it flirted with the 10% level in late 2009. Currentl...
    On February 9, 2016 / By
  • Finance 0

    Euro Pressured As Worries Intensify Over EU Health

    The Euro continues to underperform despite the recent demand as a carry trade currency. Against the Japanese Yen, the common currency Euro fell to its lowest level in a fortnight, with a similar outcome against the safe haven Swiss Franc. In general, safe haven demand has been whetted as worries over the Eurozone’s banking system grows and on the backs of disappointing economic data from Germany. Germany is viewed as the economic driver for the Eurozone and any weakness there tends to migrate to the overall EU economy. As reported at 10:34 am (GMT) in London, in volatile trade, the EUR/JPY was trading lower at 129.23 Yen, a decline of 0.16%...
    On February 9, 2016 / By
  • Finance 0

    Chinese Lunar New Year- Effect On Stock Markets

    By now many of our readers will be quite familiar with the different effects that holidays can have on the markets. One example of this is the Santa Claus rally which will be in full swing throughout the month of December. Now we turn our sights to the Chinese New Year and the effect that it has on the Shanghai Composite Index (SSECI). The fact that there are only 22 years of historical data are available for this index means that it is somewhat difficult to confidently assert a pattern. Nevertheless, there are some pretty interesting data to look at in light of the New Year and other surrounding holidays such as Labor Day, the Mid-Autumn Fes...
    On February 9, 2016 / By
  • Finance 0

    E The Daily Shot And Data – February 9, 2016

    What started as a crude oil driven selloff in the equity markets has quickly evolved into fears around the global banking sector. Why? Here are some trends that help explain the situation. 1. Bank jitters started with Portugal’s bank called Novo Banco which was restructured forcing haircuts on senior bondholders (including Blackrock and Pimco). As analysts had suspected for some time, European senior bank bonds are not really “senior” and are in fact subordinated to depositors. The Novo Banco event brought this issue to light. Moreover not all senior bonds were treated the same. Only bonds carrying a minimum denomination of ...
    On February 9, 2016 / By
  • Finance 0

    Top 4 Trading Assets Of The Week

      The jubilation of the Super Bowl has come and gone, and financial analysts, traders and investors are left with the grim reality that commodities prices are likely going to endure multiple years of depressed prices. This is the opinion that is shared by many commodities brokers, including the Chief Executive Officer (CEO) of Vitol. It was recently announced that Ian Taylor – the CEO of the Vitol Group – foresees crude oil prices remaining in a tight trading range between $40 per barrel and $60 per barrel right through until 2025. Such news hardly inspires confidence in a depressed energy sector which has been attempting to claw its way...
    On February 9, 2016 / By
  • Finance 0

    E Happy New Year?

    The global stock selloff is intensifying without input from China, closed for the week for New Year’s. Concern over the failure of OPEC to reach a deal to boost oil prices is the ostensible trigger for another round of selling which has hit not only oil-related shares, but also ones from sectors offering alternative energy: nuclear, solar, and battery systems. The rot is spreading to other commodity shares. Meanwhile, concern over bank exposure to emerging markets, its pricey credit default swaps, and the dropping German “bund” yield have pushed down Deutsche Bank (DB) shares by 4.35%. Europe-traded stocks fell to levels last seen...
    On February 9, 2016 / By