German ZEW Survey results Expected On Tuesday
TestThe German ZEW survey is due on Tuesday 16th January and is so far the most awaited news of the first two days of this week’s trading. There is a lot of optimism in play as recent stats also show
Deprecated: Function get_magic_quotes_gpc() is deprecated in /home2/sharonox/public_html/wp-includes/formatting.php on line 1828
Deprecated: Function get_magic_quotes_gpc() is deprecated in /home2/sharonox/public_html/wp-includes/formatting.php on line 3603
Technical Outlook: GBP/USD
By Xinyang
Fundamental Outlook
During the Asia-Pacific session the main event was New Zealand employment data which beat expectations across the board. The Unemployment rate declined to 5.1% versus expectations of 5.3% and a prior of 5.7%, Job Growth increased by 2.4% versus 0.6% expected, and the Participation Rate increased to 69.7% versus 68.8% expected. All three metrics were above the highest of expectations, initially seeing strength in NZD, however this was short lived by comments from stats bureau stated that the strong data was partly due to adjustments in the survey.
During today's London session the main event was UK employment data which saw Claimant Count Unemployment Change beat estimates at -8,600 versus expectations of 9,500. Although GBP initially saw strength with a 49 pip spike in cable, this was short lived with GBP shortly after the release back below pre-announcement levels.
In today’s session we expect the strongest currency to be USD which has continued to remain supported following yesterday's hawkish comments from Fed's Dudley that "the Fed is edging closer for a rate increase" and that "September is a possibility". Although not too dissimilar from Dudley's usual rhetoric this has lead to slightly positive sentiment. Today's FOMC meeting minutes do pose a risk to our current view on USD, however may also provide an excellent opportunity to enter into USD positions.
The weakest currency is expected to be GBP as sterling has failed to benefit from today's positive employment report, furthermore weakening shortly after the release which continues to highlight the overall bearish outlook for GBP.
The main event in today's New York session will be the release of the FOMC meeting minutes from the Fed's July 26-27 meeting.
The GBPUSD pair is currently priced at 1.3014.
There are several levels including the current price level which can be considered for selling opportunities:
The price levels below could be used to sell from as price retraces into them:
1.3050, 1.3072, 1.3100
The price level below could be used to sell from as the price breaks out below:
1.2950
Source: Jarratt Davis
Technical Outlook (GBP/USD Daily Chart)
Indicators: Bearish (50 sma below 200 sma)
Price action: The price has broken down from a long-term bearish channel
Summary: I am expecting the price to pull back near to the critical resistance zone before resuming it's downtrend.
During the Asia-Pacific session the main event was New Zealand employment data which beat expectations across the board. The Unemployment rate declined to 5.1% versus expectations of 5.3% and a prior of 5.7%, Job Growth increased by 2.4% versus 0.6% expected, and the Participation Rate increased to 69.7% versus 68.8% expected. All three metrics were above the highest of expectations, initially seeing strength in NZD, however this was short lived by comments from stats bureau stated that the strong data was partly due to adjustments in the survey.
During today's London session the main event was UK employment data which saw Claimant Count Unemployment Change beat estimates at -8,600 versus expectations of 9,500. Although GBP initially saw strength with a 49 pip spike in cable, this was short lived with GBP shortly after the release back below pre-announcement levels.
In today’s session we expect the strongest currency to be USD which has continued to remain supported following yesterday's hawkish comments from Fed's Dudley that "the Fed is edging closer for a rate increase" and that "September is a possibility". Although not too dissimilar from Dudley's usual rhetoric this has lead to slightly positive sentiment. Today's FOMC meeting minutes do pose a risk to our current view on USD, however may also provide an excellent opportunity to enter into USD positions.
The weakest currency is expected to be GBP as sterling has failed to benefit from today's positive employment report, furthermore weakening shortly after the release which continues to highlight the overall bearish outlook for GBP.
The main event in today's New York session will be the release of the FOMC meeting minutes from the Fed's July 26-27 meeting.
The GBPUSD pair is currently priced at 1.3014.
There are several levels including the current price level which can be considered for selling opportunities:
The price levels below could be used to sell from as price retraces into them:
1.3050, 1.3072, 1.3100
The price level below could be used to sell from as the price breaks out below:
1.2950
Source: Jarratt Davis
Technical Outlook (GBP/USD Daily Chart)
Indicators: Bearish (50 sma below 200 sma)
Price action: The price has broken down from a long-term bearish channel
Summary: I am expecting the price to pull back near to the critical resistance zone before resuming it's downtrend.
Deprecated: Function get_magic_quotes_gpc() is deprecated in /home2/sharonox/public_html/wp-includes/formatting.php on line 1828
Deprecated: Function get_magic_quotes_gpc() is deprecated in /home2/sharonox/public_html/wp-includes/formatting.php on line 3603
By Xinyang
Latest from MarketsDaily
-
-
US CPI on the Rise while Core Inflation is Steady
Test Annualized consumer price inflation (CPI) continued to push higher in November as expected, though core inflation unexpectedly held steady, official data showed on Thursday. U.S. consumer prices moderated in November, but the underlying trend continued to point to firming
-
UK Employment Falls Slightly In October
Test The jobs market stagnated in the three months to October, according to the latest jobs report from the Office for National Statistics, suggesting employers are finally slowing their hiring in the wake of June’s Brexit vote. The number of
-
Eurozone Industrial Production Fails In October
Test Eurozone industrial output dipped in October for the second consecutive month against expectations of a slight rise as production of intermediate and non-durable consumer goods dropped in a sign of muted growth in the fourth quarter according to data
-
U.S Import Prices Fall In November
Test U.S. import prices recorded their biggest drop in nine months in November on declining petroleum costs, with renewed dollar strength threatening to keep imported inflation subdued. The Labor Department said on Tuesday import prices fell 0.3 percent last month
-
Asian Development Bank cuts India’s 2016 growth estimate
Test The Asian Development Bank (ADB) today cut its 2016 growth estimate for India to 7 per cent from the previous 7.4 per cent on account of demonetization, weak investment and agricultural slowdown. The ADB had, in March last year,
