Category: Daily Look

U.S. Dollar Mixed After Higher Jobless Claims and NY Ebola Case



The U.S. Department of Labor reported that Weekly Initial Jobless Claims had increased by 17,000 claims in the week ending on October 18th.

Weekly jobless claims rose to 283K, compared to an expected decline to 269K and with the previous number revised slight higher from 264K to 266K. The four week average for jobless claims came to 281K, which is the lowest average seen since May of 2000. People receiving benefits for the second month in a row also hit a 14 year low of 2.35 million.

The U.S. Dollar fell against the Japanese Yen but was mostly higher against other majors in early Asian trading today.  Safe haven Japanese Yen buying was cited in the wake of the announcement of a New York Ebola virus case, while other factors contributing to the Greenback’s performance were better than expected earnings reports from U.S. bellwether companies, such as General Motors and Caterpillar, and continued expectations of U.S. interest rate hikes sometime next year.

Currency traders will be watching the U.S. Census Bureau’s release of New Home Sales on Friday, which are expected to drop to 473K from a previous reading of 504K.

Markets await UK growth data

Markets await UK growth data

There’s no doubt that a calmer tone has emerged in markets this year. Stocks have recovered for most of the week and the spike higher in forward volatility measures seen in both FX and even more so in equities have been partially reversed. This has also allowed the dollar to recover from the mid-October lows

Growing concerns over global growth

Growing concerns over global growth

There has been a common theme in the past few weeks in relation to central banks becoming more concerned with the global growth outlook and the Eurozone in particular. This was evident in the minutes to the UK MPC meeting released yesterday, together with RBA minutes earlier in the week and also the FOMC minutes

Daily CADJPY Indecision Candle – Potential Breakout to the Downside

Daily CADJPY Indecision Candle – Potential Breakout to the Downside

The CADJPY market has been falling under pressure every since the prior uptrend over extended, and was exhausted. The CADJPY has fallen into a strong weekly level where the market found strong support. The daily chart printed a bullish rejection candle and pushed prices higher in what appears to be a correctional move. The countertrend

EUR/USD and GBP/USD pressured lower

EUR/USD and GBP/USD pressured lower

The main move on Tuesday was the decline seen in EURUSD, which saw the week’s short-held gains put aside as the market reacted to fresh speculation of stimulus from the ECB. The central bank bought covered bonds for a second day in a row as part of measures announced back in September. There were also

Chinese growth stalls in the third quarter

Chinese growth stalls in the third quarter

Overnight data from China showed the economy slowing in the third quarter in year-on-year terms, although not by quite as much as anticipated by the market. Headline GDP increased 7.3% (expected 7.2%), with industrial production for September coming in stronger than expected at 8.0% (expected 7.5%). China needs to slow, because the growth seen in

EUR/USD, GBP/USD, USD/JPY Technical Analysis – October 21

EUR/USD, GBP/USD, USD/JPY Technical Analysis – October 21

EURUSD Daily Pivots R3 1.2919 R2 1.2867 R1 1.2833 Pivot 1.2781 S1 1.2747 S2 1.2696 S3 1.2661   The EURUSD looks to be heading towards testing a long term resistance level at 1.283 level, which managed to hold in the past two occasions. A successful test of resistance could see the first decline towards the

A rise in FX volatility

A rise in FX volatility

We’ve seen an undeniable shift in sentiment over the course of the month. Markets are now a lot more focused on the risk and implications of deflation, rather than looking for more QE from the ECB to support the Eurozone and provide a further boost to sentiment and stocks. Behind this, the dynamics operating on

Fed Flies Dove Flag; USD Consolidates

Fed Flies Dove Flag; USD Consolidates

There is an unfamiliar shade of green across most order screens this morning, with risk appetite rebounding after equity markets were able to stall the disastrous week of declines yesterday; though the recovery in investor sentiment has not been uniform, as the overnight session was a struggle for the Nikkei and other Asian equity indices. 

GBP/USD declines after Bullard’s speech – Watch CAD

GBP/USD declines after Bullard’s speech – Watch CAD

Markets seem to have stabilised for now but it may be temporary as investors adjust for an environment of lower inflation, lower growth and higher interest rates, although it’s still far from a done deal that interest rates will indeed rise anytime soon. The UK’s benchmark FTSE 100 is on course to record its longest