Daily Market Analysis by CapitalStreetFX

[CSFX.Support]

GBP/AUD signal by Capital Street FX

From GMT 06:30 02/12/2016
Till GMT 21:00 02/12/2016

Buy at 1.70500
Take profit at 1.71500
Stop loss at 1.70000

 

[CSFX.Support]

Gold Trade Idea by Capital Street FX

Mixed U.S. Jobs Report Helps Gold Rise For the First Time in Four Sessions

Gold futures turned higher on Friday, on track to rise for the first time in four sessions as the U.S. dollar on the back of a U.S. monthly jobs report.

Gold ticked up to around $1175.00 per ounce, paring their loss for the week after the U.S. government data showed that the economy added 178,000 new jobs in November with unemployment rate falling to a nine-year low in the month.

The U.S. dollar index, which measures the greenback against a half-dozen rivals, lost 0.28% to 100.68 on Friday, contributing to a weekly loss of roughly 0.8% as Friday’s jobs results were considered to be mixed. Although the jobless rate dropped to its lowest level since August 2007 at 4.6%, the labor force contracted by 226,000, sending the participation rate to 61.7 from 62.8 percent, the lowest since June. Additionally, wage growth declined 0.1% on a monthly basis, which is somewhat bullish for longer-term treasuries and negative for the dollar.

Trade suggestion

Buy Stop at 1175.00, Take profit at 1190.00, Stop loss at 1170.00

 

[CSFX.Support]

Central Bank Policy Meetings To Dominate the Economic Calendar

Central Bank Policy Meetings To Dominate the Economic Calendar

The U.S. dollar fell broadly in the second-half of last week after hitting a 13-1/2 year high on Wednesday. The dollar index closed the week lower following consistent gains in the last three weeks. The gauge that measures the greenback against a half-dozen rivals lost 0.28% to 100.68 on Friday, contributing to a weekly loss of roughly 0.8% as Friday’s jobs results were considered to be mixed.

Although the jobless rate dropped to its lowest level since August 2007 at 4.6%, the labor force contracted by 226,000, sending the participation rate to 61.7 from 62.8 percent, the lowest since June. Additionally, wage growth declined 0.1% on a monthly basis, which is somewhat bullish for longer-term treasuries and negative for the dollar.

The Fed will almost certainly raise interest rates later this month but the chance of an early 2017 follow-up hike may have faded due to the subdued nonfarm payrolls report. Fed fund futures indicate a 100% chance of a hike at this mid-December meeting. However, the fact that the odds of another quarter-point move remains below 50% until June 2017 shows that investors expect a hike followed by a long pause.

In the week ahead, there are no major U.S. economic reports scheduled but the ISM non-manufacturing number. The Institute for Supply Management is scheduled to release its November’s result for the U.S. service sector activity on Monday. The index is expected to rise to 55.4 from October’s 54.8.

Besides, three Federal Reserve officials including Chicago Fed President William Dudley and St. Louis Fed head James Bullard are due to speak. Their remarks will be closely watched ahead of the upcoming Fed meeting on December 13-14th.

Nonetheless, what will dominate the economic calendar next week are central banks’ meetings. The ECB is to hold its final monetary policy meeting of 2016 on Thursday. No policy change is expected but the press conference with President Mario Draghi following the rate decision will be closely watched for clues over the ECB’s bond purchasing program which expires in March of next year.

The Bank of Canada is expected to hold rates steady at its meeting on Wednesday despite having said that the bank was actively considering cutting for the third time in two years in October. Data on Friday which showed the economy added 10,700 jobs in November and the jobless rate fell to 6.8%, indicated improving labour market.

The Canadian dollar gained ground for the second week against the greenback as OPEC ministers finally agreed to trim its output by million barrels per day. The deal is still contingent on the participation of non-OPEC nations like Russia, with analysts hoping for a production cut by 600,000 barrels a day.

Like the BOC and the ECB, the RBA is also anticipated to keep interest rates on hold at record lows of 1.5% at its meeting on Tuesday. Wednesday’s data on third quarter growth will follow with rate of growth being expected to slow slightly at 0.3% in the three months to September, after expanding by 0.5% during the second quarter.

 

[CSFX.Support]

EUR pairs gap down opening on Monday?

EUR pairs gap down opening on Monday?

Analysts are comparing the Italy referendum with the UK referendum in June. What to expect on the market opening this Monday post the high impact event? Is the EUR pairs gap down opening a likely scenario?

3 December, AtoZForex – The political and economic fears tied to a “NO” vote for the Italian referendum, has a grip on the financial markets. It is not strange that the analysts are comparing the consequences of the Italian referendum with that of the UK’s EU vote in June. We all know the outcome of the Brexit vote and that is why EUR is currently enduring additional pressure.

It is clear that the event will increase market volatility. But what about the Forex brokers’ risk management ahead this event? To answer these queries of our readers, AtoZ Forex contacted all brokers. Including Capital Street FX, the broker has revealed its risk management ahead the referendum. Alongside, Capital Street FX’s research team provided their outlook of the market post the high impact event.

It is business as usual for Capital Street FX

Capital Street FX is working diligently with its Liquidity Providers and is happy to inform all readers and clients that there have been no changes to margins and leverage. Our spreads and execution also continue to maintain the high standards we set ourselves.

After the Brexit and US elections, what are the expectations for Italy’s referendum?

Capital Street FX’s research team: While there have been a succession of fat tail events such as the results of the Brexit vote and the US elections. We do believe that the chances of a win by the “Yes” camp currently appear unlikely. The markets expect a propagate a wave of uncertainty in the Italian system after a “No” vote. As the country works out its path ahead in the days after the Sunday referendum. Italian stocks and bonds are expected to continue their downward trend.

What are Capital Street FX’s expectations for EUR after Sunday?

Capital Street FX’s research team: Capital Street FX has been expecting the EUR to continue its downward trajectory, given the overall situation in Europe. Various EU members are due to hold elections in the coming 12 months. There is a distinct shift in the political system towards ultra nationalist, right-wing politicians and parties.

This distinct trend has the potential to ignite protectionist and nationalist sentiments, which can create further turbulence in the EU economy, as the Common Market struggles to encourage growth and employment, both of which continue to remain sluggish despite the ECB stimulus. We expect EURUSD to attempt a break of the 1.05 handle before the end of the year. Lastly, an attempt at parity can not be ruled out in Q1, 2017.

Possibility of EUR pairs gap down opening on Monday

Capital Street FX’s research team: The markets will be influenced by 3 key events – the Italian Referendum. The elections in Austria, and carry-over effects of the US NFP reading. While the first 2 events are being expected to create turbulence in European Stock Markets and Indices, and selling pressure in the EUR. The US NFP could carry the USD and US Equity Markets to new highs. Moreoever, there is a possibility of EUR pairs gap down opening on Monday.

How can Italy’s voting affect the ECB meeting on December 8th?

Capital Street FX’s research team: The ECB meeting on the 8th is expected to be a complex meeting. Given the prospects of turbulence in the Italian markets. Along with the political system in the country and mounting signs of distress in the Italian banking system. Also, a bailout for the Italian banking system could come up for discussion based on the the severity of the overall situation in Italy prior to the meeting.

An extension of the ECB stimulus program also looks likely due to the shocks emanating from Italy. Having said all the above, there is growing concern that the ECB has exhausted most of its tools to ignite growth and inflation in the Eurozone. Also, the ECB has not been very successful at it. It needs to balance the concerns of fiscal and monetary policy hawks with the need for populist economics. Which will be some balancing act, given the divergent situation in various EU countries.

What recommendations can Capital Street FX give to traders trading next week?

Capital Street FX’s research team: We expect the markets to be most affected by the Italian situation and the response of the ECB. Since the odds are stacked against Europe currently, staying light on European indices, banking stocks and bonds would be prudent. Also, the Dollar and US equities may continue to rally and buying dips in US equities and the USD would serve traders well.

Has Capital Street FX set up special communication lines for client enquiries?

Capital Street FX maintains a strong focus on client communication at all times. We are reachable at all times via live chat, email, skype and support tickets. All clients also have access to their account managers at all times. During key events such as the upcoming weekend, we ensure that clients have real-time access to their account managers as required. Current and New clients can get in touch with us at all times.

 

[CSFX.Support]

Daily Report on December 05, 2016 by Capital Street FX


Daily Report on December 05, 2016



The euro declined on Monday after Italian Prime Minister Matteo Renzi said he would resign as his reforms, which aim at simplifying the legislative process, have been defeated in a referendum on Sunday. Renzi’s departure, which came on the heels of Britain’s shock vote to exit the European Union and Donald Trump’s unexpected victory, threats to embolden a renewed political and financial turmoil in Europe. The euro touched its weakest point in 20 months at $1.05048 in the early hours of Asian session.

Stocks also retreated with the MSCI Asia Pacific Index losing 0.4 percent. Japan’s Topix index, Australia’s S&P/ASX 200 Index, Korea’s Kospi 200 index and New Zealand’s S&P/NZX 50 Index all turned lower. Futures on the S&P 500 Index shed 0.3 percent while FTSE 100 Index futures edged 0.6 percent lower.

Chinese yuan and shares declined on Monday after Donald Trump took on the Chinese government via social media. The offshore yuan lost 0.2 percent to 6.8842 per dollar, its first loss in three days while the Shanghai Composite Index and the Hang Seng China Enterprises Index lost fell 1.2 percent, and 0.8 percent, respectively. Trump reiterated on his Twitter some of the grievances about China related to the country’s yuan devaluation and military complex building in the South China Sea.

Crude oil futures ticked lower on concerns that producers outside of OPEC will boost oil production on the back of rising prices. While Russia on Friday announced the highest average daily oil production in almost 30 years at 11.21 million bpd in November, U.S. energy firms were reported to extend drilling activities into a seventh month. Data from energy services firm Baker Hughes showed that the U.S. oil rig count rose by 3 rigs last week, sending the total amount of added oil rigs since its trough on May 27, 2016 to 161.



Technicals

EURUSD



Fig: EURUSD H4 Technical Chart

EURUSD has broken out of a trading range from 1.05700 to 1.06500. The pair has also crossed over two MAs, which suggesting a reversal into a downtrend. As can be observed from the Stochastic chart, the %K line and %D line are pointing downwards, indicating further decline.

Trade suggestion

Sell Stop at 1.05600, Take profit at 1.05000, Stop loss at 1.05900



AUDNZD



Fig: AUDNZD H4 Technical Chart

AUDNZD fell back below the 23.6% retracement at 1.04800 after failing to beat crossed over the long-term MA50. The slide has brought the market back to the bearish zone, as indicated by the RSI chart. The pair may retest a firm support at 1.04150 – the level that has restrained the price to fall lower for nearly a month.

Trade suggestion

Sell Stop at 1.04600, Take profit at 1.04150, Stop loss at 1.04800



WTI



Fig: WTI H4 Technical Chart

WTI scaled back after retesting a six-week high at 51.70. The rally which sent the market into the overbought territory finally lost its momentum. The %K line has penetrated the %D line from above, indicating a correction that may prompt the commodity to hit the support at 50.50.

Trade suggestion

Sell Stop at 51.10, Take profit at 50.50, Stop loss at 51.40



FTSE 100 Index



Fig: FTSR 100 Index H4 Technical Chart

FTSE 100 index has been on a slide since last Wednesday. Lower highs and lower lows have been formed on the price action, indicating a strengthening bearish momentum. The index pulled back from one-month low at 6676.55 last Friday but it had to give up its strength after the price hit the resistance at 23.6% Fib. level.

Trade suggestion

Sell Stop at 6700.00, Take profit at 6650.00, Stop loss at 6725.00

 

[CSFX.Support]

Natural Gas Market Outlook by Capital Street FX

Cold Weather and PM Modi Spur Natural Gas Rally, But U.S. and Canada Fire Up Drilling Rigs

Natural gas futures turned higher on Monday after finishing lower last Friday. Following a correction as previous longs decided to book profits, the commodity prices, which is expected to be fueled by upcoming favorable weather, may extend their gains after a spectacular rally since November 9.

According to naturalgas.com, “a polar blast will invade the west-central U.S. the next few days with lows dropping into the single digits to teens, locally below zero. The eastern U.S. will warm early this week as weak high pressure builds in, although it will cool rapidly late in the week as polar arrives. A milder break will follow into the eastern U.S. next weekend into early the following week as cold reloads over the Northwest.” As temperatures continue to be cooler, natural gas demand may be increasing well above normal by mid-week and brings severe storage draws.

Meanwhile, also on the demand side, India was said to move forward a natural gas-based economy. Speaking in an energy conference on Monday, Indian Prime Minister Narendra Modi claimed that as natural gas is cheaper and less polluting fuel, his country will manage to raise local production of natural gas as well as create import infrastructure to meet the growing domestic demand.

On the supply side, the number of rigs targeting gas increased by one to 119 in the U.S. last week, said the Baker Hughes Industries last Friday. Meanwhile, the Canadian rig count also jumped last week with those drilling for gas adding by 20. Higher prices are encouraging more Canadian and American drillers get back to work, which causes a potential correction in the longer term despite bullish outlook in short-term.

Fig: Natural Gas D1 Technical Chart

Natural gas has been struggling around the highest level since October 18th at 3.544. The price is on the verge of breaking above the 0.0% Fibonacci level, which will also send the market into the overbought zone. As can be seen from the ADX chart, although the ADX index is soaring, +DI line is pointing downward, suggesting cautious bulls.

Trade suggestion

Buy Stop at 3.520, Take profit at 3.720, Stop loss at 3.420

 

[CSFX.Support]

Brent Trade Idea by Capital Street FX

Brent Moves Past $55 Despite Threats From Non-OPEC Producers

Brent crude oil broke above $55-per-barrel threshold on Monday, trading at a 16-month high, as rising prospects of a tightening market after an OPEC output cap deal overshadowed concerns over mounting production from producers outside of the cartel.

The international oil benchmark hit an intra-day low at $55.32 per barrel thanks to OPEC sentiment that continued to give speculators impetus to increase bets on higher oil prices.

Mohammed Sanusi Barkindo, OPEC’s secretary general stated at an energy conference on Monday that oil demand in Asia is likely to keep on rising steadily. Demand from India alone is expected to jump to more than 10 million barrels per day (bpd) by 2040, from 4.1 million barrels per day now, said Barkindo.

Meanwhile, the potential output cut agreement between OPEC and Russia might not be as deep as initially anticipated. Moscow has agreed to slash its output by 300,000 bpd in early 2017 and planned to use its November oil production as its baseline for the cut. However, Russia’s average daily oil output in November was reported to reach its highest in almost 30 years at 11.21 million bpd, suggesting that the nation’s output will remain high even after a reduction.

Trade suggestion

Buy Stop at 55.00, Take profit at 55.80, Stop loss at 54.60

 

[CSFX.Support]

AUD/JPY signal by Capital Street FX

AUD/JPY signal by Capital Street FX

From GMT 16:20 05/12/2016
Till GMT 21:00 05/12/2016

Buy at 80.500
Take profit at 86.300
Stop loss at 80.100

 

[CSFX.Support]

Daily Report on December 06, 2016 by Capital Street FX


Daily Report on December 06, 2016



Asian stocks joined a global relief rally on Tuesday as investors brushed off the defeat of Italy’s constitutional referendum. U.S. equities closed higher yesterday with after the Dow Jones Industrial Average setting a fresh record high. The benchmark finished up 45.82 points, or 0.2%, at 19,216.24, a fresh record close following strong economic data.

A report from the Institute for Supply Management on Monday showed American services industries grew at the fastest pace in 13 months in November. The service side of the U.S. economy that employs about 80% of Americans rose to 57.2% last month from 54.8% in October, signaling that more businesses are expanding instead of contracting. Given the fact that most companies reporting business is steady, the case for a rate hike later this month has been continually strengthened.

Australia’s central bank kept interest rates unchanged earlier today, citing a global commodity upswing as a factor that boost national income. The Reserve Bank of Australia left the cash rate at 1.5 percent Tuesday as higher resource export prices ease the impact of a weaker economy at home where labor-market hiring relies heavily on part-time employment as participation falls.

As the U.S. Federal Reserve will almost certainly tighten its policy this month, Governor Philip Lowe can wait for his Australian dollar to be pushed down by a stronger greenback without further easing. A fall in local currency’s prices will aid Australia’s key service exports of education and tourism that are highly sensitive to the exchange rate. The RBA’s next policy meeting isn’t until February, when the bank will release its updated quarterly growth and inflation forecasts.



Technicals

EURUSD



Fig: EURUSD H4 Technical Chart

EURUSD resumed its upbeat moves following a consolidation at around 1.07600. The market returned to the bullish zone after the pair pulled back from the lowest level in one year at 1.05048. Coupled with support from two MAs, ADX is soaring with a divergence between the +DI and –DI lines, suggesting further advances.

Trade suggestion

Buy Stop at 1.07800, Take profit at 1.08500, Stop loss at 1.07400



USDCHF



Fig: H4 Technical Chart

USDCHF has been struggling around the support at 1.00600 after falling from as high as 1.01767. The price action has crossed over a couple of MAs from above, suggesting a reversal into a downtrend. While RSI is moving towards the oversold zone, ADX keep surging with a wide gap between +DI and –DI lines.

Trade suggestion

Sell Stop at 1.00500, Take profit at 0.99900, Stop loss at 0.99600



BRENT



Fig: BRENT H4 Technical Chart

Brent crude has been trading in an upward trading range which has been formed by higher highs and higher lows since early August. The commodity price has bounced back from the lower boundary at 47.39 and is heading upwards to the upper boundary. As RSI has neared the overbought zone, a pullback may occur when Brent crude hits the resistance.

Trade suggestion

Buy Stop at 54.90, Take profit at 55.70, Stop loss at 54.50



EURO 50



Fig: EURO 50 Index H4 Technical Chart

Euro 50 index has moved past the resistance at 3060.00 which it failed to break above yesterday. The index may edge higher to attempt the 50.0% Fibonacci retracement as RSI is pointing upwards while the short-term MA20 has converged with the long-term MA50 from below.

Trade suggestion

Buy Stop at 3070.00, Take profit at 3090.00, Stop loss at 3060.00

 

[CSFX.Support]

GBP/USD signal by Capital Street FX

From GMT 07:00 06/12/2016
Till GMT 21:00 06/12/2016

Buy at 1.27500
Take profit at 1.28500
Stop loss at 1.27000

 

[CSFX.Support]

Bank of Montreal trade idea by Capital Street FX

Bank of Montreal Raises Share Dividend As Earnings Results Top Forecast

Shares of Bank of Montreal were up 0.65% to $89.58 in pre-market trading on Tuesday after the lender revealed its fourth-quarter earnings that was well ahead of market expectations.

The bank’s earnings per share rose to C$2.10 for the quarter to October 31st from C$1.90 a year earlier, beating forecasts calling for earnings of C$1.85. The Canada’s fourth-biggest lender witnessed its net income gained 11% to $1.35 billion, up from $1.21 billion in the same quarter last year.

Thanks to strong performance by its U.S. personal and commercial business, BMO’s revenue reached C$5.28 billion in the last quarter. That was 6.0% higher than C$4.98 billion the bank earned during the fourth quarter of last year. As the result, BMO boosted its quarterly dividend by two cents to 88 cents per share.

Trade suggestion

Buy Stop at 89.58, Take profit at 90.00, Stop loss at 89.40

 

[CSFX.Support]

Sterling Loses Ground After Government Backs May’s Plan

Sterling Loses Ground After Government Backs May’s Plan

Sterling extended its losses against the dollar in Asian trading hours on Wednesday after reversing lower from a two-month high on Tuesday.

The pair had surged as high as $1.27745 in early European session as investor confidence was partly fueled by remarks from Brexit minister David Davis that the government may be willing to pay into the EU budget in return for access to the single market. The rally was also spurred by expectations that the government would lose a court battle to begin the formal process for leaving the EU without parliamentary approval.

However, the government has stated that parliament should respect the result of the June referendum and showed signs of support to Prime Minister Theresa May’s intention to invoke Article 50 by the end of March next year. This means investors’ hopes that Brexit might be delayed have been damped.

Trade suggestion

Sell Stop at 1.26500, Take profit at 1.26000, Stop loss at 1.26750

 

[CSFX.Support]

NASDAQ 100 signal by Capital Street FX

From GMT 09:10 07/12/2016
Till GMT 21:00 07/12/2016

Buy at 4800.00
Take profit at 4835.00
Stop loss at 4785.00

 

[CSFX.Support]

Dow Jones Trade Idea by Capital Street FX

Dow Jones Set New Record High Regardless of Slump In Health-care Shares

U.S. stocks shook off early weakness in the health-care sector on Wednesday to rise to all-time highs. The benchmark Dow Jones Industrial Average jumped nearly 2% to reach an all-time trading high of 19,475.51, on track for its third consecutive record close.

Health-care shares plunged early Wednesday after President-elect Donald Trump threatened to cut drug prices. The president-elect, who had already been critical of drug prices while on the campaign trail, told Time in his “Person of the Year” cover story that “I’m going to bring down drug prices,” because ““I don’t like what has happened with drug prices.”

Shares of Johnson & Johnson lost -1.46% while those of Pfizer Inc. and Merck & Co. Inc. were down 1.92% and 1.10%, respectively.

The drop in health-care names was offset by gains in American Express Co., Home Depot Inc. and United Technologies Corp. which rallied more or less than 2% each.

Trade suggestion

Buy Stop at 19470.00, Take profit at 19600.00, Stop loss at 19000.00

 

[CSFX.Support]

Daily Report on December 08, 2016 by Capital Street FX


Daily Report on December 08, 2016



Asian shares continued to rise on Thursday, ignited by fresh U.S. equity records. Both the S&P 500 Index and the Dow Jones Industrial Average rose to all-time high records yesterday, thanks to wagers that the European Central Bank may extend its asset buying program at a policy meeting due later today. The MSCI Asia Pacific Index soared 1.2% to its peak in one month, extending gains for a third day. Japan’s Topix index climbed 0.9% while gauges in Australia, South Korea and Hong Kong were also higher.

Risk appetites got an added boost after the Chinese General Administration of Customs reported upbeat trade figures for November. Official data on Thursday showed the country’s exports rose unexpectedly by 0.1% from a year earlier, while imports climbed 6.7% on strong demand for commodities. That left the country with a trade surplus of $44.61 billion for the month.

The euro was steady around 1.07700 versus the dollar with market attention turning to the ECB meeting. ECB chief Mario Draghi is expected to prolong the bank’s 80 billion euros ($86 billion) a month of bond purchases beyond March in the wake of Italy's "No" vote last weekend.

Crude price kept declining on Tuesday even after weekly report from the U.S. Energy Information Administration on Wednesday showed a deeper-than-expected draw in U.S. stockpiles last week. Crude oil inventories in the U.S. were reported to fall by 2.4 million barrels in the week that ended on Dec. 2, compared with analyst expectations for a draw of 1 million barrels. However, government data also pointed out that oil supplies at Cushing, Oklahoma, the biggest U.S. storage hub for crude futures, increased by a hefty 3.8 million barrels last week. This is the biggest weekly added amount since 2009.

In Japan, final third-quarter GDP reported by the Cabinet Office showed the economy expanded less than was projected. The Japanese economy grew an annualized 1.3% after economists predicted a rate of 2.3% with capital expenditure shedding 0.4% in the quarter and inventories subtracting 0.3 percentage point from growth.



Technicals

EURGBP



Fig: EURGBP H4 Technical Chart

EURGBP has been moving sideways since yesterday after surging to around 0.85200. The short-term MA20 is heading upwards, attempting to cross over the long-term MA50 from below. With support from two MAs, the pair may approach the resistance at 0.85800. RSI remains above 50, consolidating further up moves.

Trade suggestion

Buy Stop at 0.85200, Take profit at 0.85800, Stop loss at 0.84.900



EURUSD


Fig: EURUSD H4 Technical Chart

EURUSD has been on a rise following a consolidation at around 1.07200. The rally has been bolstered by two MAs hanging under the price action. Both RSI and ADX are soaring, confirming a strong upside. The pair may attempt the resistance at 1.08500.

Trade suggestion

Buy Stop at 1.08000, Take profit at 1.08500, Stop loss at 1.07850



Natural Gas



Fig: Natural Gas H4 Technical Chart

Natural Gas futures rebound from the 0.0% Fibonacci level at 3.540. The price was also supported by two MAs moving below the price action. Buyers seem to overwhelmingly dominate in the market as can be seen from the indicator chart, RSI has pulled back from the central line to move upwards in the bullish zone.

Trade suggestion

Buy Stop at 3.620, Take profit at 3.740, Stop loss at 3.560



EURO 50



Fig: EURO 50 H4 Technical Chart

Euro 50 index has been on a correction after surging as high as 3160.00 – the highest level since April 21st.The rally from as low as 2974.10 had sent the pair into the overbought market which prompted investors to book profit. A reversal may occur around the support at 3122.00

Trade suggestion

Buy Limit at 3122.00, Take profit at 3160.00, Stop loss at 3110.00

 

[CSFX.Support]

Costco Trade Idea by Capital Street FX

Costco Posts a Rise in Profit As Same-store Sales Turn Higher

Shares of Costco Wholesale Corp. rose 1.4% to 156.00 in after-hours trading on Wednesday after the big box retailer announced a better-than-expected rise in profit for its fiscal first quarter of 2017.

For the three-month period to November, Costco reported a profit of $545 million, or $1.24 a share, up 13.5% from $480 million, or $1.09 a share, a year earlier, thanks to upbeat results from same-store sales that pointed to an expansion for the first time in the past three quarters.

The company’s same-store sales advanced 1% in the November quarter, sending revenue 3.2% higher to $28.1billion. Net sale also jumped 3.2% to $27.5 billion. Markets had expected for earnings of $1.19 a share on $28.3 billion in revenue.

Trade suggestion

Buy Stop at 156.00, Take profit at 159.00, Stop loss at 155.00

 

[CSFX.Support]

EURUSD Trade Idea by Capital Street FX

Euro Witnesses Sharp Decline after ECB Extends Bond-buying Program

The euro swung from gains to losses on Thursday following the European Central Bank’s monetary policy statement that showed the central bank would extend but at the same time taper its monthly bond-buying program in April.

Considering uncertainties from both inside and outside the 28-nation bloc namely Brexit, the U.S. election and the Italian referendum, the ECB decided to expand its quantitative-easing program to exceed 2.2 trillion euros ($2.4 trillion) by the end of 2017. However, the monthly pace will be reduced to 60 billion euros ($65 billion) a month from 80 billion euros currently.

According to the statement, the Governing Council may “increase the program in terms of size and/or duration” if the outlook becomes less favorable or if financial conditions become inconsistent with further progress toward a sustained adjustment of the path of inflation”.

Following ECB’s monetary policy, the U.S. Federal Reserve will hold its own meeting which is widely expected to witness the second rate hike in 10 years. The divergence in policy between two central bank is likely to send the pair EURUSD lower.

Trade suggestion

Sell Stop at 1.06100, Take profit at 1.05700, Stop loss at 1.06300

 

[CSFX.Support]

USD/CHF signal by Capital Street FX

From GMT 15:45 08/12/2016
Till GMT 21:00 08/12/2016

Buy at 1.01600
Take profit at 1.02000
Stop loss at 1.01400

 

[CSFX.Support]

Broadcom Trade Idea by Capital Street FX

Shares of Broadcom Take Off on Doubled Revenue and Upbeat Outlook

Shares of Broadcom Ltd. gained nearly 4% in after-hours trading on Thursday even after the chip maker posted a loss in the latest quarter. For the three-month period ending October, Broadcom posted a loss of $632 million, or $1.59 a share, compared with a year-earlier profit of $429 million, or $1.49 a share.

However, adjusted per-share earnings excluding one-time items rose to $3.47 from $2.51 recorded one year ago. The figure was better than expectations calling for a per-share profit of $3.38. Furthermore, the company’s revenue more than doubled to $4.14 billion from $1.84 billion, comfortably topping forecast of $4.13 billion revenue.

The chip maker also gave a positive outlook for the current quarter, expecting net revenue of about $4.07 billion and a gross margin of roughly 47% in the fiscal-first quarter. The interim dividend, payable on Dec. 30, was raised to $1.02 a share.

Trade suggestion

Buy Stop at 177.40, Take profit at 180.00, Stop loss at 176.00

 

[CSFX.Support]

NZD/JPY signal by Capital Street FX

From GMT 09:00 09/12/2016
Till GMT 21:00 09/12/2016

Buy at 82.100
Take profit at 82.600
Stop loss at 81.900