Daily Market Analysis from NewForex Broker

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Forex News from New Forex: European markets opened with a rise

On Monday, April 20th, European markets opened with a rise. The news from China contributed to it, the central bank of the country reduced the amount of funds, which banks can keep as a reserve, by 100 basis points. It is the second reduction in two months.

However, the news from Greece restrain a positive market sentiment. On Saturday, the EZB chair Mario Draghi stated that the country is on the edge of the default and might leave Eurozone, that’s why it should try to save itself. During the speech at the spring meeting of the International Monetary Fund in the USA, Mario Draghi once more highlighted that the fate of Greece is only in «its hands». The next meeting of the European Finance Ministers devoted to Greece is due to be on April 24th. But the German Finance Minister Wolfgang Schaeuble is quite sceptical about the final solution of the problem with Greece.

The FTSE index gained 0.82% and at the moment of writing the article was at 7052.30. The German DAX surged 0.70% and is at 11770,71, the French CAC 40 advanced 0.66% and is at 5177,21.

 

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Forex News from New Forex: The Aussie and the kiwi profit from the policy of China

The Aussie and the kiwi advanced in the trading on Monday, April 20th, as China expended the lending power of banks pushing investors worldwide to higher-risk currency plays.

The Australian dollar reached an almost one month high at $0.7844 after the decision of the central bank of Chinа. According to NewForex analyst Joseph Schwartz, the possible level of support for AUD/USD is 0.7667, a low of April 16th and resistance — 0.7907, a high of March 25th.

The Australian currency is flat versus the NZ dollar, the pair is at 1.0126. The market has slightly reacted to the decline of consumer prices at 0.3% in New Zealand in the first quarter, experts predicted a 0.2% decline.

The single currency is weaker today, there was no progress over the solution of the financial situation in Greece at the meetings of G20 and IMF in Washington. The euro shed 0.54% versus the greenback, the pair is traded at 1,0747. The single currency edged down against the yen, the pair EUR/JPY is at 127,81.

 

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Forex News from New Forex: The pound rose considerably

In the trading on Wednesday, April 22, the pound gained ground after the report of the Bank of England. The official representatives of the bank claim that the level of inflation will bounce back in 2015. In the report a steady recovery of Eurozone was mentioned, the pace is faster than expected.

The central bank does not exclude the return of the negative inflation in the nearest months as in February and March the inflation was flat.

At the moment the pound is traded at 1.5040 against the greenback. During the day the currency picked up 0.75%. The possible level of support for the pair GBP/USD is 1.4891, level of resistance — 1.5010.

The pound is traded higher versus the single currency, the pair is at 0.7189. Currently the dollar is sliding. The dollar index shed 0.49% and is at 97.73.

 

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Forex News from New Forex: The European indexes are declining

On Thursday the European shares are sliding, investors analyze economic data from China and Eurozone.

Most of European indexes demonstrate a negative dynamics except for FTSE. At the moment of preparing the article the FTSE was gaining 0.06% to 7035.76. The German DAX shed 1.23 and is at 11723.99, the French CAC 40 edged down to 0,56% to 5168.50. The pan-European Euro Stoxx 600 index declined as soon as it was reported about the slowdown of business activity growth in April. The Eurozone PMI index slumped from 54.0 in March to 53.5 in April.

In Germany PMI which includes manufacturing production and services, slid from 55.4 in March to 54.2 in April.

In other European countries the situation does not look better. The unemployment level in Spain picked up in comparison with the previous quarter. According to the Office for National Statistics of the UK, retail sales dropped unexpectedly by 0.5%.

In China the government makes efforts to redirect export of manufacturing goods into domestic spending. The PMI fell to a year low at 49.2 from 49.6.

In Japan PMI has also declined from 50.3 in March to 49.7 in April. First since July 2014 there is a decrease of new orders and manufacturing production.

 

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Forex News from New Forex: Asian markets are on the rise

Chinese stocks reached their multiyear highs today, however worries over the forthcoming meeting of the central bank put pressure on indexes. NewForex analyst Joseph Schwartz stresses that now we observe the return of retail money into stocks after a sufficiently long (5-6 years) «bear market».

Last week gains in Wall Street contributed to the improvement of Asian sentiment. Nasdaq Composite and S&P 500 closed with record highs on Friday. On Monday Shanghai Composite jumped more than 2%. The Hang Seng advanced more than 1% and hit a record high in 8 years.

In Hong Kong the stocks of HSBC surged 5% after the news that the headquarters of the bank might be moved from London to Hong Kong.

The Japanese index TelNikkei shed 0.2, investors are in the anticipation of the first quarter earnings of such large companies as Canon and Fanuc.

 

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Forex News from New Forex: The US dollar is higher versus main currenies

On Monday, April 27th, the US currency is higher versus the basket with six major currencies. The dollar index picked up 0.32% to 97.40.

The greenback is 0.42% higher against the euro, the pair is at 1.0829. The single currency is under pressure after the announcement of the European Finance Ministers that Greece should provide a detailed plan of reforms to the beginning of May, otherwise the country will not receive additional funding.

The pound is 0.41% lower versus the buck, the pair is at 1.5126. The possible level of support for the pair is 1.5025, a low of April 24th, resistance 1.5256, a high of March 6th. The British currency is sliding due to the uncertainty over the Parliamentary elections which are due to be on May 7th, it might lead to the so called «hung Parliament» when no party manages to get the majority of votes in the House of Commons.

The buck is higher versus the yen and the Swiss franc, the pair USD/JPY surged 0.22% to 119.25, USD/CHF advanced 0.20% to 0.9564. The Australian dollar shed 0.09% to 0.7815 but the kiwi gained 0.18% against the buck to 0.7607.

 

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Forex News from New Forex: Brent and WTI are falling

In the trading on Tuesday oil shed 1% in the anticipation of the last week oil inventory data from the USA. It is expected that oil stockpiles will hit new records. The amount of oil in the US on April 17th was 489.0 mln. barrels, a high in 80 years.

Today Brent oil shed 83 cents to $64.00 a barrel, the US crude oil lost 85 cents to $56.14 a barrel. Spread between Brent and WTI contracts is $7.92 a barrel.

A decline in prices displays huge gains which were made in the last weeks and some concern over the new data from the USA.

The amount of active rigs reduced in the country to the number of 2010, the U.S. Energy Information Administration forecasts the slowdown of oil production in April and May, which will be the first fall in 4 years. In April the US oil futures picked up 15%, a lot of experts assume that the production of shale oil in the USA has reached its top and the decline might be observed in the nearest months.

 

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Forex News from New Forex: The dollar loses ground

On Tuesday, April 28th, the US dollar is lower versus the basket of six major currencies, markets are in expectation of the private sector data from the USA and the monthly report of the Federal Reserve System.

The dollar index slipped to 0.27% to 96.63. The euro jumped 0.34% against the greenback, the pair is at 1.0927. The single currency gained ground when it was reported about some changes in the team of the Greek prime-minister Alexis Tsipras. This fact brings hope that Greece and EU prime-ministers will come to a mutual agreement.

The pound surged 0.30% against the buck, the pair is at 1.5177. In spite of this, the British currency is unsteady, the GDP of the United Kingdom climbed only 0.3% during the first three months of 2015, in the last quarter of 2014 the increase was 0.6%. At the moment the majority of investors are awaiting the Parliamentary elections in the UK.

The Aussie and the NZ dollar rose versus the greenback. The Aussie jumped 0.87% and hit a month high at 0.7926, the kiwi gained 0.50% to 0.7685.

 

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Forex News from New Forex: Gold rises amidst the weak dollar

Low economic data from the USA and fading hope that the interest rate will be increased in June fortified positions of gold.

In the New York Mercantile Exchange gold with the delivery in June was traded at $1,211.50. Last week there was observed a decline of gold prices by 2.34%, however, at the beginning of this week the metal managed to win back its positions. The possible level of support for gold is $1,185.30, a low of March 30th, a level of resistance $1,218.60, a high of April 6th. Silver with the delivery in June advanced 1.13% to 16.625 an ounce.

The US dollar has considerably declined after data about the fall of the consumer confidence index by 6% in April. In March the index was at 101.3, in April — 95.2. The dollar index shed 0.33% to 96.75. In this situation the euro hit a 3-week high at 1.0981. The American currency slumped against the yen, the pair reached a weak low at 118.84. Today markets are in expectation of the Fed report.

 

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The pound gains against the greenback

The pound hit an almost 2-month high against the US currency, the demand for the greenback has fallen after weak economic data. The British currency picked up 0.32% against the dollar, the pair is at 1.5406. NewForex analyst Joseph Schwarzt considers that the possible level of support for GBP/USD is 1.5174, a low of Tuesday, the level of resistance 1.5460, a high of February 27th.

The pound is higher versus the euro, advancing 0.13%. The pair EUR/GBP is at 0.7149.

Another positive factor for the growth of the pound is the index of house prices in the UK, it surged 1.0% in April after the increase by only 0.1% in March.

The European indexes demonstrate a decline in the anticipation of the Fed report. The FTSE shed 0.22% today and is at 7008.08, the German DAX slid 0.47% and is at 11755.74, the French CAC 40 slipped to 0.61% to 11755.74. The pan-European index FTSEurofirst 300 lost 0,1% to 1,616.44. However, the Greek index ATG rose 0,7%.

 

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Forex News from New Forex: The greenback rises against the major currencies

In the trading on May 5th, the dollar is higher against the basket of main currencies, recent favourable data from the USA supported the demand for the currency. Today investors are in the anticipation of new economic data, in particular the construction sector activity and the service sector activity.

The dollar edged up after the increase of factory orders up to 2.1% in March, exceeding the forecast at 2.0%. The activity in the manufacturing sector last month was steady, the consumer sentiment reached a high in April since January 2015. The data encourages optimism after some slowdown.

Today the dollar index jumped 0.18% to 95.77. The euro shed 0.24% against the buck, the pair is at 1.1119. The pound is flat versus the US currency, the pair is at 1.5115. The greenback is higher versus the yen and the Swiss franc. USD/JPY climbed 0.14% to 102.30, USD/CHF gained 0.10% to 0.9345.

The Aussie gained ground versus the buck by 0.43% to 0.7870. It happened due to cutting the interest rate by 0.25% to the record low of 2.0%. Meanwhile, the kiwi is 0.48% lower against the US dollar, the pair is at 0.7501.

 

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Forex News from New Forex: Brent and WTI are rising

In the trading on Wednesday, May 6th, WTI oil futures hit a high since the start of the year. In New-York crude oil with the delivery in June reached an intraday high at $61.67 a barrel, a high of December 11th 2014. In the Futures Exchange in London Brent oil advanced 80 cents or 1.18% to $68.32 a barrel. Spread between WTI and Brent contracts is $6.93 a barrel.

Black gold received support from the dollar sliding a fourth week in a row, declining oil stockpiles in the USA, the volume of oil reduced by 1.5 million barrels last week.

Moreover, the dollar index dropped by 0.45% to 94.84. The steep fall happened due to the increase of the trade deficit in the USA by 43.1% to $51.4 billion in March, a high since October 2008.

At the moment traders are in the expectation of Friday’s payrolls which could hint at the increase of the interest rate. However, the recent negative economic data from the US generate doubts that the current interest rate will be changed before the end of 2015.

 

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Forex News from New Forex: The Aussie and the kiwi gain against the US dollar

On Tuesday, May 12th, the NZ dollar gained against the greenback. The pair approached 0.7371 and later consolidated at 0.7363, picking up 0.41%. The possible level of support for the pair is 0.7272, a low of March 18, the level of resistance 0.7450, a high of March 12th.

The demand for the buck is quite weak now, optimism about the forthcoming employment data has clearly decreased among traders. March payrolls demonstrated a decline of new working places, the number is 85,000, a low of June 2012.

The kiwi is lower against the Australian dollar, the pair is at 1.0779, the Aussie has advanced 0.21%.

The Australian currency shows positive dynamics against the greenback. The Aussie has surged 0.65% against the buck, today the pair AUD/USD hit 0.7940, a high of the Asian session. The possible level of support is 0.7858, a low of May 8th, a level of resistance — 0.8007, a high of May 7th.

According to the Australian Bureau of Statistics the number of home loans in March has increased by 1.6%, although only a 1.0% rise was expected. The Aussie has climbed against the euro, the pair is at 1.4098.

 

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Forex News from New Forex: The European bonds take off

On Tuesday, May 12th, an active sell-off in the bond market is seen, the yields of 10-year bonds in Germany, Italy and Spain are rising sharply amidst the declining deflation risks.

During the European trading session the yield of 10-year German bonds edged up to 10.2 points or 17.03%, reaching 0.701%. In contrast, last month the yield of 10-year German bonds hit a record low of 0.048%. However, the deflation risks are minimizing now as oil prices are recovering and the quantitative easing program is in action.

The yield of 10-year Italian bonds jumped 11.3 points or 6.44%, reaching 1.867%, 10-year Spanish bonds picked up 8.3 points or 4.72% to 1.819%.

In the USA the yield of 10-year bonds rose to 5.3 points or 2.35%, reaching 2.325%, a high of December 8th 2014.

Meanwhile, the euro advanced 0.9% and is at 1.1256 against the US dollar. The dollar index shed 0.7% to 94.45.

The European indexes are sliding amidst the active sell-off. The German DAX slumped to 2.4%, the French CAC 40 lost 2.1%, the EURO STOXX 50 edged down to 2.2%, London’s FTSE 100 slid 1.95%.

 

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Forex News from New Forex: The pound is rising against the US dollar and the euro

In the trading on Wednesday, May 13th, the pound approached a 5-month high versus the greenback. The latest data showed that the unemployment level reached a 6 ½-year low in April. The demand for the buck is under pressure before the retail data, the first economic figures of the first quarter displayed a slowdown.

In the morning trading in Europe the pair GBP/USD hit 1.5742, a high since December 17 2014, later it consolidated at 1.5725 gaining 0.37%. The possible level of support for the pair GBP/USD is 1.5554, a low of Tuesday, a level of resistance — 1.5786, a high of December 16th.

According to the U.K. Office for National Statistics the jobless rate slumped from 5.6% in March to 5.5% in April, which is a low since September 2008. Moreover, the amount of Claimant Count dropped by 12 600 in April, in March the decline was 16 700. The average earnings in the UK jumped 2.2% in March, outstripping forecast at 2.1%.

The pound is higher against the single currency, it has advanced 0.22%. The pair is at 0.7139.

 

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Forex News from New Forex: Oil prices decline amidst weak economic data

On Thursday, May 14th, oil prices are sliding amidst weak figures of top world economies which lead to the concerns over the global oil demand.

China, one of the main world energy consumers, took down a notch in April in spite of the easing monetary program. Germany, one of the economic leaders in Europe, demonstrated weak results in the first quarter. In the USA retail sales were soft in April which pulled down hopes of a sharp growth in the second quarter.

Today Brent oil with the delivery in June lost 17 cents and is at $66.64 a barrel, the US crude oil shed 18 cents and is at $60.32. The US oil stocks have been declining for the second week in a row, this time by 2.2 million barrels after four months of a steady growth.

However, total oil stocks in the USA are now 90 million barrels higher than during the same period last year. Oil oversupply still exists and consequently the risk of price fall. But NewForex analyst David Fineberg claims that the coming summer demand and the season of hurricanes in the USA, which could damage the oil supply, might lead to the price rise. In the nearest 30 days WTI could hit $70 a barrel.

 

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Forex News from New Forex: European indexes in the positive zone

In the trading on Tuesday, May 19th, European indexes rose significantly as investors are in the expectation of fresh data of the economic situation in Germany. In the morning trading the EURO STOXX 50 picked up 1.72%, the French CAC 40 gained 1.75%, the German DAX 30 climbed 1.63%.

The European stock market fortified after the announcement of the ECB representative. It was stated that the central bank is going to boost the purchase of European assets this month and in June due to the coming low-liquidity period.

The Greek labour minister reported that the agreement between Greece and the international lenders would be reached in the short run.

Financial stocks are in the positive zone. The Fernch BNP Paribas and Societe Generale advanced 2.01% and 1.93%, respectively. The German Deutsche Bank and Commerzbank surged 1.94% and 2.94%.

In London the FTSE 100 index edged up to 0.47% before the release of inflation data in the UK. Financial stocks are on the rise here as well. Lloyds Banking (+0.06%), Royal Bank of Scotland (+0.74%), Barclays (+1.21%), HSBC Holdings is currently in the red shedding 0.13%.

 

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Forex News from New Forex: The US dollar gains ground

On Tuesday the dollar has considerably strengthened against the basket of major currencies, investors expect new data from the Fed. The dollar index climbed 0.74% to 94.92.

The greenback has been gradually recovering after its recent losses. On Friday there will be a release of the inflation data and on Wednesday the April’s minute of the Fed, there might be some indication of the interest rate rise.

The euro shed 0.95% against the US dollar, the pair is at 1.1207. The pound is lower against the buck today. The British currency lost 0.87% and reached a week low at 1.5518. The decline was the result of the UK’s negative inflation, the first since 1960. Last month the inflation slipped to 0.1%, experts were expecting that it would stay in the zero zone.

The dollar is traded higher versus the yen and the Swiss franc. The buck has advanced 0.09% against the yen to 120.09 and 0.46% to 0.9306 against the Swiss franc.

The Aussie and the kiwi are traded in mixed ways. The Aussie slid 0.26% against its US counterpart, the NZ dollar surged 0.24% to 0.7409. In May at the meeting of the Reserve bank of Australia it was announced that there might be a further cutdown of the interest rate because of the weak Chinese economy and the concern over the labour market in Australia.

 

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Forex News from New Forex: The Japanese economy shows a surprising rise

Asian shares shed on Wednesday after a mixed day in Wall Street, but the positive data from Japan did not let the market neck down. In the first quarter of 2015 the Japanese GDP reached 2.4%, surpassing the economic growth in the USA and in Eurozone during the same period. In the previous quarter the GDP of Japan was considerably lower — 1.1%. The fresh data confirms that the economy of Japan is confidently rising, although a rise is mostly due to the increase in inventory, while the capital spending did not live up to the expectations.

The shares of real estate companies were firmly rising in the first quarter of 2015. Their index in the Tokyo Stock Exchange has gained 3.8%. Mitsubishi Estate picked up 3.5%, Mitsui Fudosan 4.4%.

As a result of the Asian trading Nikkei 225 surged 1.0% to 20196.56, which is a new high since 2000. The JPX-Nikkei Index 400 advanced 0.7% to 14,863.14. The broader Topix climbed 0.6% to 1,643.40, a high since October 2007.

 

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Forex News from New Forex: Positive sales data strengthened the pound

After the release of retail sales data in the UK the pound reached an intraday high. Positive data increased optimism about the economic situation in the country.

Retail sales climbed 1.2% last month due to the high sales of clothing and footwear. On a year-on-year basis retail sales gained 4.7% far exceeding the forecast of the growth at 3.8%. The core sales, which include car sales, surged 1.2% in April, in March the growth was only 0.2%. Average prices in British shops are 3.2% lower in contrast to the same period last year.

The pound advanced 0.83% against the greenback jumping from 1.5600 to 1.5664. The British currency has gained against the euro as well, the pair EUR/GBP slipped to 0.7123.

The data from Eurozone demonstrated that the growth of private sector slowed down for the second month in a row, although it is still within the frame of the recovery plan. The preliminary data of the PMI index, which includes both the service and the manufacturing sector, edged down to 53.4 in contrast to the last data (53.9) and is below the forecast of53.8.