Results for 'USD'
149 articles with this tag name
Updated May 17, 2013 12:12:26 AM
Yesterday’s surprisingly good GDP and better than expected machine orders figures today beg the question, is Abenomics working? Japan’s economy grew at the fastest pace among all G7 countries in Q1. GDP increased 0.9% during the first quarter of this year, compared to an expected 0.7% rise and a revised 0.3% in the prior quarter. Also, machine orders increased 14.2% in March, beating an estimated gain of 3.5%. At face value it certainly looks like
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Updated May 16, 2013 1:55:00 PM
This morning the Central Bank of Turkey reduced interest rates by more than expected. The bank cut the rates by 50bps across the board while markets were anticipating a 25bps rate cut. The benchmark repo rate was reduced to 4.50% from the prior 5.00%, overnight lending rate cut to 6.50% from 7.00%, and overnight borrowing rate to 3.50% from 4.00%. This action by the central bank put pressure on the TRY which fell to its
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Updated May 16, 2013 10:20:00 AM
The slew of economic data released this morning out of the US reinforced the need for ongoing Fed stimulus (for now) as reports raised concern regarding both of the Fed’s mandates (price stability and full employment). Consumer prices fell by -0.4% m/m in April which was deeper than the expected -0.3% drop and even lower than the prior month’s decline of -0.2%. This was the first back-to-back decline since 2008 and the April decline was
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Updated May 15, 2013 10:12:41 PM
Last week the renminbi reached its highest level against the US dollar in 19 years. Since mid-2005 USDCNY has been on a controlled decent from a fixed position around 8.2765 to its low of 6.1307. If not for the intervention of Beijing the decrease would have been more of a collapse. However, is the renminbi still undervalued? From a fundamental perspective the Chinese currency is more fairly valued now than it was a decade ago,
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Updated May 15, 2013 3:15:00 PM
On May 8, we suggested that NZD/USD may fall towards its 200-day simple moving average (SMA) and channel support. The pair not only tested that level, but it broke below the notable support zone. Today, NZD/USD is seeing a bit of a rebound after finding horizontal support ahead of the 0.8170/80 area (also the 55-week SMA). A rally in the pair may present a technical opportunity as previous support often becomes resistance. The key level
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Updated May 15, 2013 1:50:00 PM
EUR/USD continued to decline as this morning’s disappointing Eurozone GDP figures outweighed the weakness in US economic data releases (i.e. negative Empire manufacturing, soft PPI, larger than expected drop in IP). The data showed Q1 GDP contraction of -0.2% q/q which was lower than the consensus expectations of -0.1% and the sixth consecutive quarter of negative GDP growth. EUR/USD is now trading below the 200-day simple moving average (SMA) which we highlighted as a key
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Updated May 15, 2013 9:00:00 AM
The short answer is it depends on how long the data stays soft for. Disappointing Empire manufacturing and PPI data today has taken the edge of USD. The Empire Manufacturing report was a real disappointment as it fell to its lowest level since January. New orders and number of employees also fell. The producer price data was also weaker than expected, the headline rate fell 0.7% last month, on the back of weaker energy
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Updated May 14, 2013 2:40:00 PM
USD/CHF tested above the 200-week simple moving average (SMA) for the first time since early 2010 as the pair rose to its highest level this year. The move comes on the back of USD strength amid better than expected economic data and increased expectations of a reduction in the pace of Fed asset purchases. The pair has been grinding higher over the longer term and weekly technical indicators suggest that the move may continue. The
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Updated May 14, 2013 8:50:00 AM
Last week, USD/CAD tested long term trendline support and the pair rebounded ahead of parity. It is consolidating within a triangle pattern and is currently testing the 50% Fibonacci retracement level of the move from the most recent test of the triangle top to the most recent test of the triangle base. This 50% level also coincides with the 21-day simple moving average (SMA) which is around 1.0150. A break above this area is likely
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Updated May 13, 2013 11:40:00 AM
USD/JPY rose above 102 for the first time since 2008. The pair has been in a steep upwards trend channel since September and the recent break above the psychological 100 figure saw a pick up in upside momentum over the past few sessions. Key factors behind the rise in USD/JPY are:
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