Daily Markets News From FBS

[⭐ kaito kid]

GBP: Inflation Report Hearings

GBP/USD is trading in a volatile fashion in the $1.6185/60 area on the Bank of England officials' comments during the Inflation Reports Hearings. All in all, teh BoE is trying to convince the public that they are in no hurry to raise rates.

Mark Carney:

-Possibility of meeting forward guidance threshold early not a trigger for raising rates.

-Forwards guidance gives UK understanding, businesses understand it, without it markets would be worrying about rising interest rates.

-Downside risks to global growth is EZ and emerging markets as they undergo further adjustment and structural reforms.

-UK income growth low, wage inflation weak, if UK growth relies solely on domestic consumption recovery will be very modest.

Bean:

-We are not going to rush to tighten policy.

-The MPC wants to see sustained period of growth.

http://fxbazooka.com/en/news/show/739

[⭐ kaito kid]

Trade signals from Danske Bank (Nov. 26)

EUR/USD: Buy at $1.3512 with a target of $1.3627 and a stop at $1.3459

USD/JPY: Long at 99.93 with a target of 103.00 and a stop at 100.90

GBP/USD: Possibly buy on dips

USD/CHF: Sell at 0.9140 with a target of 0.9024 and a stop at 0.9195

AUD/USD: Look to sell

USD/CAD: Long at 1.0430 with a target of 1.0658 and a stop at 1.0480

* Danske Bank traders use trailing stop orders

http://fxbazooka.com/en/analitycs/show/882

[⭐ kaito kid]

EUR/USD: between support and resistance

EUR/USD keeps trading below resistance in the $1.3560 area 950% Fibo of the decline from Oct. to Nov.; the horizontal Kijun-sen on the daily Ichimoku chart). Further resistance is at $1.3635/40. Support lies at $1.3500, $1.3480, $1.3420, $1.3400. It seems that the pair has settled in range.

EUR/USD has been sitting in a rather tight range in the recent days compared to such pairs as USD/JPY and AUD/USD which broke to the upside and to the downside respectively. It seems that the pair’s confused amid the mixed US data (the Fed’s tapering seems more likely in next year than in Dec.) and some better figures from Germany provoking controversy comments from the ECB officials about the possibility of negative deposit rates. Euro’s also in Demand as an alternative to USD. Still, deep down the ECB’s policy is more dovish than the Fed’s one, so despite the near-term resilience in the medium/long term euro is bound for weakening.

Today there will be another portion of US economic releases at 13:30-15:00 GMT.

Chart. H4 EUR/USD

http://fxbazooka.com/en/analitycs/show/883

[⭐ kaito kid]

Commerzbank bought USD/JPY on dips

Commerzbank bought USD/JPY on dips to 100.40 with a stop at 99.50 and a long-term target at 108.80.

"The 102.60 area may provoke initial failure, however the recent break up from a large triangle points to a longer-term target of 108.86," Commerzbank projects.

"We will remain immediately bullish while the currency pair stays above the 99.56 (Nov. 19 low)," analysts advise.

Chart. Monthly USD/JPY

http://fxbazooka.com/en/analitycs/show/887

[⭐ kaito kid]

GBP/USD hovers below resistance

Cable keeps consolidating below the strong resistance area at $1.6260/6340. GBP/USD almost touched the channel resistance on Monday, rising to $1.6240, and formed quite a strong bearish engulfing candle. However, on Tuesday the pair has found support at $1.6130 and recovered to the $1.6200 mark as of writing.

Recent sharp rise in GBP/JPY has increased the bullish pressure on GBP/USD. However, the 2009-2013 trend line (currently at $1.6340) is a strong resistance for the pair. Even a break above $1.6260 (last months’ highs) will likely be limited by $1.6340. There is still a high chance for the pair to top here, but we’ll wait for a confirming break below $1.5900 to enter strategic shorts in GBP.

From the fundamental viewpoint, today the markets look forward to the BOE’s inflation report hearings at 14:00 GMT. “We expect the BoE to repeat that the unexpectedly strong growth momentum is the reason that the MPC lowered its unemployment rate projection and that there could be a case for not raising the Bank Rate immediately at the 7% unemployment threshold”, economists at Danske Bank forecast.

Chart. Daily GBP/USD

http://fxbazooka.com/en/analitycs/show/885

[⭐ kaito kid]

Nov. 27: Asian session

EUR/USD closed yesterday above resistance at $1.3560 and rose to $1.3600 today. Euro rose to the highest level this month as Asian stocks erased losses and lawmakers in Germany (Angela Merkel’s Christian Union party and the Social Democrats) reached a coalition accord on wages and spending increases. Traders also think that data this week may show a pickup in inflation, reducing the need for the ECB to expand monetary easing. GfK German consumer climate will be released at 09:00 GMT. In the US watch for durable goods orders (forecast: 0.5%; previous: -0.2%) and unemployment claims at 13:30 GMT. GBP/USD is consolidating in the $1.6215 area after it gained about 60 pips yesterday. Cable awaits UK GDP data (second estimate is due at 09:30 GMT).

USD/JPY has formed a bearish engulfing candle with a low at 101.15 on Tuesday, but today has recovered into the 101.60 area. The pair still remains below the Monday’s 6-month high of 101.90. The Nikkei 225 index eased by 0.3% today, slipping from the 6-month peak touched on Monday. USD/CHF slid on Tuesday to 0.9060 and is trading in this area now after it met resistance at 0.9079 earlier today.

Commodity currencies have found some support on the news that China was working on a system of deposit insurance. The pair AUD/USD is consolidating in the $0.9100/30 range after having dipped to $0.9190 yesterday. It is interesting to note that Australia’s Bureau of Resources and Energy Economics confirmed slowing of mining investment in the country. NZD/USD is swinging in the $0.8170/8200 range. New Zealand October trade deficit came out lower than expected (168M vs. expected 350M).

USD/CAD is trading on the upside in the 1.0550 area. Yesterday there was a spinning top formed on the daily chart – this formation indicates indecisiveness of the market players. The greenback’s below this week’s high in the 1.0580 zone. Canadian Dollar traded at almost a 4-month low as the price of crude oil, the nation’s biggest export, fluctuated.

http://fxbazooka.com/en/news/show/741

[⭐ kaito kid]

Key currency options (Nov. 27)

Market prices tend to move towards the strike price at the time large vanilla options (ordinary put and call options) expire. It happens (all things equal) as each side of the deal seeks to hedge its risk exposure. This action is most noticeable ahead of 10 a.m. New York time when the majority of options expire (14:00 GMT).

Here are the key options expiring today:

EUR/USD: $1.3485, $1.3500, $1.3600;

GBP/USD: $1.6145, $1.6230;

USD/JPY: 100.75, 101.00, 102.00;

USD/CHF: 0.9200;

AUD/USD: $0.9225;

USD/CAD: 1.0575, 1.0600;

EUR/JPY: 137.00.

http://fxbazooka.com/en/news/show/742

[⭐ kaito kid]

Nov. 27: European session

EUR/USD is trading around $1.3600 after testing $1.3613. GfK German consumer climate came above forecast at 7.4 (forecast: 7.1). Euro’s supported by the buying interest. The next level on the upside is 61.8% Fibo of the Oct.-Nov. decline at $1.3625.

As expected, the second estimate UK Q3 GDP came unchanged at +0.8% q/q (+1.5% y/y). However, the pound rallied strongly, taking GBP/USD up by 120 pips to $1.6320. The cable broke above the strong $1.6260 resistance and approached the next important level – $1.6340 (2009-13 trend line). EUR/GBP fell to 0.8330, while GBP/JPY marched higher to 166.00. USD/JPY is trading 10 pips below the Monday’s 6-month high of 101.90.

We are now bracing for US data due at 13:30 GMT (Initial Claims, Durable Goods Orders and the Reuters/Michigan index).

http://fxbazooka.com/en/news/show/744

[⭐ kaito kid]

Trade signals from Danske Bank (Nov. 27)

EUR/USD: Buy at $1.3512 with a target of $1.3627 and a stop at $1.3459

USD/JPY: Long at 99.93 with a target of 103.00 and a stop at 100.90

GBP/USD: Long at $1.6175 with a target of $1.6380 and a stop at $1.6110

USD/CHF: Short at 0.9095 with a target of 0.8966 and a stop at 0.9136

AUD/USD: Look to sell

USD/CAD: Long at 1.0430 with a target of 1.0658 and a stop at 1.0480

* Danske Bank traders use trailing stop orders

http://fxbazooka.com/en/analitycs/show/890

[⭐ kaito kid]

FBS: EUR/USD in short-term

EUR/USD reached $1.3600 today, but then retraced to $1.3570. Yesterday euro closed above 50% Fibo of the decline from Oct. to Nov. at $1.3560. The currency, however, still didn’t settle back inside the uptrend channel since July. The top of the daily Ichimoku Cloud lies at $1.3595. Support is at $1.3540, $1.3515 and $1.3500. Resistance is at $1.3600, $1.3625, $1.3640.

Today in Europe watch Spanish retail sales at 08:00 GMT (forecast: -1.6%; previous: 2.2%) and German Gfk consumer confidence survey at 09:00 GMT (forecast: 7.1; previous: 7.0).

FBS proposes selling either in the $1.3630 area with stop at $1.3660 and target at $1.3540 or on the break below $1.3500 for $1.3420.

Chart. H4 EUR/USD

http://fxbazooka.com/en/analitycs/show/892

[⭐ kaito kid]

USD/JPY nears the 102.00 resistance

USD/JPY has recovered to 101.80 after having dipped to 101.15 earlier in the session. The pair remains in a bullish channel and is now close to a 6-month high of 101.90, reached on Monday.

“The dollar went through a correction after the recent rapid rally and ahead of the US holidays,” Mizuho analysts say. “However, the USD bearish move can't be deep as there are no real threats for the risk sentiment right now”.

Analysts expect further sales of JPY against the dollar and other major currencies until the end of the year. “USD/JPY will rise to 103.74, while a downward correction is likely to be limited at 100.62 in the near future”.

Chart. H4 USD/JPY

http://fxbazooka.com/en/analitycs/show/895

[⭐ kaito kid]

Nov. 29: Asian session

EUR/USD is trading above $1.3600. So far euro set high at $1.3621. Euro kept strengthening as investors pared bets for additional easing by the ECB ahead of the region’s inflation data due today at 10:00 GMT. The euro area’s unemployment rate will also be released at this time, while earlier we’ll hear of German retail sales at 07:00 GMT and French consumer spending at 07:45 GMT. A report released yesterday showed consumer prices in Germany, Europe’s largest economy, accelerated more than expected. No data out of the US today.

GBP/USD reached $1.6374, the highest level since August 2011. The pair’s rising for the fourth day as the Bank of England’s Governor Mark Carney said the central bank will end incentives for mortgage lending to head off threats to financial stability from the housing market. Nationwide HPI is due at 07:00 today.

Yen selling continues as risk-appetite remains strong. USD/JPY pushed to a new high of 102.60 today, but met resistance and eased to 102.20 as of writing. EUR/JPY has hit a fresh 5-year low at 139.70. Japan published a large block of mixed statistics in the Asian session: consumer inflation indices came above the forecasts, but the industrial production unemployment rate and consumer confidence disappointed to the downside. USD/CHF is trading in the 0.9050 area after it declined by 20 pips yesterday.

AUD/USD dipped to a fresh 2.5-month low at $0.9055 before recovering some ground to $0.9090. AUD weakened on the news that Australia blocked a $2.7 billion bid by US agribusiness company Archer Daniels Midland. The deal could have provided more capital to boost the sector. Another bad news for the Aussie was that the mining giant Rio Tinto had closed its loss-making aluminum refinery where 1,500 people are employed. NZD/USD has also recovered back above the $0.8100 mark after having dipped to $0.8083. New Zealand building permits in October fell by 0.6% m/m (vs. expected +1.7%). USD/CAD once again rose to the 1.0600 handle. Canadian dollar fell after the country’s current account deficit narrowed less than expected in Q3, signaling export growth remains subdued. Canada will publish Sept. GDP at 13:30 GMT.

http://fxbazooka.com/en/news/show/750

[⭐ kaito kid]

EUR/USD: Ichimoku analysis (Nov. 29)

Daily. This week buyers were more active than sellers. Euro broke above the Kijun-sen (KS) resistance line, which formed a strong level in the $1.3560 area. This level was capping the prices throughout November, so the pair’s settling above it can encourage market participants to make new purchases. In the meantime, euro’s trading inside the Ichimoku cloud, right under its upper boundary. At the same time, we should pay attention to the bearish character of the indicator. Cloud still remains bearish and Tenkan and Kijun are in no hurry to cancel the Dead Cross ©. So, don’t expect a quick exit from the Cloud. The closest level which can stop the bulls lies at $1.3650.

Chart. Daily EUR/USD

H4. At this timeframe the pair went to the bullish territory through the resistance provided by the upper limit of the Ichimoku cloud. Positive attitude of the market players relied on the Golden Cross formed at the beginning of the week by Tenkan and Kijun. Then the nature of the underlying trend changed – the lines Senkou Span A and Senkou Span B crossed and the pair successfully settled above the Cloud’s top. Thus, the bulls keep advancing, but there’s strong resistance in the $1.3640/3650 range and this resistance can stop the growth of the currency pair.

Chart. H4 EUR/USD

Tatyana Norkina, FBS analyst

http://fxbazooka.com/en/analitycs/show/902

[⭐ kaito kid]

GBP/USD: Ichimoku analysis (Nov. 29)

Daily. GBP/USD kept rising. During the weeks the bulls have broken up the horizontal channel in which the pair was trading since the beginning of October. Tenkan-sen and Kijun-sen intersected and formed a Golden Cross © exactly above the upper line of the Ichimoku Cloud. This may be seen as a further confirmation that the market is ready to continue growth. Pay attention to Senkou Span A and Senkou Span B which are strengthening the bullish Cloud. This probably shows the growth of long-term bullish sentiment. Now GBP/USD is trading above 2-year highs. There’s high possibility of pound’s testing 2011 maximum.

H4. Here the picture is also in favor of the bulls. Earlier this week the pair got support at Kijun-sen as it dipped to $1.6150, but then turned up and was rising continuously throughout the week renewing local highs. All lines of the indicator are currently directed upwards, that indicates further recovery. The Ichimoku Cloud has a wide range bullish, the Golden Cross is still in place.

http://fxbazooka.com/en/analitycs/show/903

[⭐ kaito kid]

Dec. 2: Asian session

US dollar holds well against Japanese yen and Canadian dollar, but made a dramatic fall versus British pound. Demand for safety of American currency declined before reports that may signal a global manufacturing pickup.

EUR/USD is trading just above $1.3600. In the euro area watch for Spanish and Italian Manufacturing PMIs due at 08:15 and 08:45 GMT (higher readings are expected) and in the US for ISM Manufacturing PMI due at 15:00 GMT (forecast 55.2 vs. previous 56.4). GBP/USD reached $1.6442. Britain will release manufacturing PMI at 09:30 GMT (forecast: 56.5 vs. previous 56.0).

USD/JPY reversed down from the last week’s 6-month high of 102.60 on the news that the one of the authors of Japan's aggressive stimulus, Economics Minister Akira Amari, was hospitalized. The pair has filled the morning bullish gap and dipped lower to 102.22. BOJ Governor Haruhiko Kuroda said today he wouldn’t hesitate to adjust policy fanning speculation the bank could take more easing steps next year. USD/CHF declined to the 0.9040 area, but is trading above Friday’s low at 0.9028. Swiss SVME PMI will be released at 08:30 GMT (forecast 55.1 vs. 54.2).

Commodity currencies are supported by the upbeat Chinese data. China's official November manufacturing PMI, released over the weekend, held at an 18-month high of 51.4, unchanged from October and the forecast of 51.2. HSBC manufacturing PMI, released early Monday, has also come above the forecast at 50.8 (forecast: 50.5, prior: 50.4). As a result, AUD/USD opened the week with a bullish gap at $0.9130, retraced lower to fill it and then has extended growth on HSBC figures. The pair is currently trading around $0.9160. Don’t forget the RBA holds a monthly policy

http://fxbazooka.com/en/news/show/752

[⭐ kaito kid]

EUR/USD: Elliott waves (Dec. 2)

Weekly. The pair completed the wave [D] which took the form of a Zigzag. Now we are see8ing the beginning of wave [E].

Chart 1. Weekly EUR/USD

Daily. We may be seeing the construction of the descending correction wave [2]. When it’s complete, the decline in form of impulse will continue.

Chart 2. Daily EUR/USD

H4. Wave [2] is taking form of a complex correction pattern. Wave (y) of [2] is a rising Zigzag and looks either already completed or nearly so. Thus, in the near future we can expect a reversal. This week may be bearish.

Chart 3. H4 EUR/USD

Roman Petuchov for FBS

http://fxbazooka.com/en/analitycs/show/907

[⭐ kaito kid]

Trade signals from Danske Bank (Dec. 2)

EUR/USD: Buy at $1.3512 with a target of $1.3688 and a stop at $1.3509

USD/JPY: Long at 99.93 with a target of 103.74 and a stop at 101.85

GBP/USD: Long at $1.6260 with a target of $1.6475 and a stop at $1.6310

USD/CHF: Short at 0.9095 with a target of 0.8966 and a stop at 0.9136

AUD/USD: Sell higher

USD/CAD: Long at 1.0430 with a target of 1.0674 and a stop at 1.0550

* Danske Bank traders use trailing stop orders

http://fxbazooka.com/en/analitycs/show/911

[⭐ kaito kid]

Dec. 3: Asian session




US dollar is supported as American ISM manufacturing PMI for rose to the highest level since April 2011 bolstering expectations the Federal Reserve will soon trim its stimulus,. Investors also wait for ADP employment report due tomorrow: according to the forecasts, US companies added 170K positions last month, which would be the most in 5 months

EUR/USD is trading in the $1.3520/40 area. In euro zone watch for Spanish unemployment change due at 08:00 GMT (forecast 49.3K vs. previous 87.0K) and euro area’s PPI at 10:00 GMT. GBP/USD spiked to $1.6442 yesterday and is currently trading around $1.6365. Britain will release construction PMI at 09:30 GMT (forecast 59.3 vs. previous 59.4). Nothing can stop the JPY’s decline: on Tuesday USD/JPY extended the upside, facing resistance at 103.40. The Nikkei 225 index hit a 6-month high of 15.780 in the morning session. USD/CHF rose to the levels just below 0.9100.

AUD/USD kept weakening on Tuesday, retesting the $0.9055/65 support. Data showed China non-manufacturing PMI for November came at 56.0, down from 56.3 in October. In Australia, the RBA left interest rates unchanged at 2.50% along with forecasts, saying policy settings remain appropriate. In the meantime, Australia retail sales rose by 0.5% m/m in October (prior: 0.9%; forecast: 0.4%). Note that Australia will release its Q3 GDP on Wednesday. NZD/USD is trading a bit above the daily low of $0.8155. New Zealand finance minister English said today the NZ firms were anticipating interest rate rises in 2014. USD/CAD is trading on the upside, not far from yesterday’s high at 1.0654.

http://fxbazooka.com/en/news/show/754

[⭐ kaito kid]

Key currency options (Dec. 3)

Market prices tend to move towards the strike price at the time large vanilla options (ordinary put and call options) expire. It happens (all things equal) as each side of the deal seeks to hedge its risk exposure. This action is most noticeable ahead of 10 a.m. New York time when the majority of options expire (14:00 GMT).

Here are the key options expiring today:

EUR/USD: $1.3625, $1.3600, $1.3535, $1.3525, $1.3520, $1.3515, $1.3500, $1.3400, $1.3360;

GBP/USD: $1.6200;

USD/JPY: 104.00 (large), 102.50, 102.00, 101.75, 101 (large). 100.75.

AUD/USD: $0.9100, $0.9050;

USD/CAD: 1.0635;

EUR/JPY: 136.90;

EUR/GBP: 0.8375, 0.8365, 0.8350 (large), 0.8280, 0.8260, 0.8250.

http://fxbazooka.com/en/news/show/756

[⭐ kaito kid]

GBP/USD remains supported



This week GBP/USD tested the levels above the 2009-2013 trend line, touching $1.6440 on Monday. However, the cable has faced significant resistance in this area (38.2% Fibo, top of the bullish channel) and formed a bearish “shooting star”. The pair retraced to the $1.6345 support on positive US data late Monday, but on Tuesday has recovered to $1.6380.

The short-term bearish correction seems to be over for now; the bulls have regained control over the pair. We don’t see any reasons to sell the pair at least as long as it holds above $1.6340. Next support lies at $1.6260. Break above the $1.6440 resistance would open the way to $1.6760 (2011 high).

British Manufacturing PMI surprised the markets to the upside yesterday, coming at 58.4 (prior and forecast: 56.5). Today Britain is scheduled to release construction PMI at 9:30 GMT (prior: 59.3).

http://fxbazooka.com/en/analitycs/show/912

[⭐ kaito kid]

EUR/USD: neutral bias

EUR/USD was setting daily highs in the $1.3615/20 area for 4 days in a row. So far the bulls failed to push the prices above this area. The pair remained inside the daily Ichimoku Cloud. Yesterday euro closed below Kijun-sen and below previous resistance at $1.3560.

Yesterday euro should have rallied on improvement in the euro zone’s PMI, but the currency was discouraged by strong US data which bolstered expectations that the Fed will reduce monetary stimulus. In addition, there’s still a big divergence in economic growth within the euro area. In this situation the biggest negative risk for the pair is that the ECB will drive EUR/USD lower. The euro zone’s producer prices are due at 10:00 GMT and analysts forecast contraction. Lower producer inflation will justify the central bank’s dovish approach.

For now the picture is neutral. Major moves aren’t expected ahead of the ECB’s meeting on Thursday and NFP on Friday. This time market players may regard $1.3570 resistance as an opportunity to sell the single currency. Support lies at $1.3500/3490, $1.3425, $1.3468.



Chart. H4 EUR/USD

http://fxbazooka.com/en/analitycs/show/913

[⭐ kaito kid]

Dec. 4: Asian session



EUR/USD is trading around $1.3585, below yesterday’s high at $1.3613. Euro remains near month-high before the ECB meeting tomorrow, when the central bank is expected to refrain from cutting the benchmark interest rate. Euro area will release retail sales at 10:00 GMT (forecast +0.2% after -0.6%) and revised GDP data. In the US ADP will release its non-farm payrolls figure at 13:15 GMT (forecast: 172K; prior: 130K). Also watch for ISM non-manufacturing PMI and new home sales at 15:00 GMT.

GBP/USD is trading just below $1.6400, below the recent highs in the $1.6400 area. Pound was near the highest since 2011 after a report showed Britain’s construction expanded at the fastest pace in more than 6 years. USD/JPY is trading in a choppy fashion in the 102.25/65 range. The pair is now testing the lower border of the November bullish channel. Japanese Nikkei index dropped by 2.6% from the 5-month high set on Tuesday. USD/CHF edged up to 0.9050 after it slipped by 65 pips to 0.9020 yesterday.

Australia Q3 GDP disappointed the markets, rising only by 0.6% q/q (forecast: 0.7%) and 2.3% y/y (forecast: 2.6%). As a result, AUD/USD fell by almost 100 pips to $0.9050 (3-month low), retesting the $0.9055/65 support. However, this area contains the bearish pressure for now. NZD/USD fell back below $0.8200. China HSBC services PMI for November has also come a little bit below the forecast (52.5 vs. 52.6 prior). USD/CAD edged down to 1.0640 after it peaked to 1.0672 yesterday. Canadian dollar remains near 3-year low ahead of a central-bank rate decision today. The Bank of Canada will probably leave its benchmark rate unchanged at 1%.

http://fxbazooka.com/en/news/show/758

[⭐ kaito kid]

Key currency options (Dec. 4)

Market prices tend to move towards the strike price at the time large vanilla options (ordinary put and call options) expire. It happens (all things equal) as each side of the deal seeks to hedge its risk exposure. This action is most noticeable ahead of 10 a.m. New York time when the majority of options expire (14:00 GMT).

Here are the key options expiring today:

EUR/USD: $1.3490, $1.3500, $1.3515 (large), $1.3520, $1.3600, $1.3650;

GBP/USD: $1.6160, $1.6200;

USD/JPY: 101.50, 102.00 (large), 102.25, 102.50, 103.00 (large), 103.20, 103.25, 103.50, 103.75.

http://fxbazooka.com/en/news/show/759

[⭐ kaito kid]

What to expect from the BOC?

Bank of Canada will announce its monetary polcy decision today at 15:00 GMT. That's what economists at major banks expect from the meeting:

HSBC: We expect the Bank of Canada to leave interest rates unchanged at 1.00% for the 25th consecutive announcement. We also expect the Bank to again signal that it has no bias to either hike or cut rates in the short or medium term. Despite inflation having fallen to 0.7% y/y, and thus below the bottom of the Bank of Canada’s 1% to 3% inflation target range, robust auto sales and firm housing markets indicate that key interest-sensitive sectors of the economy do not require additional stimulus.


Barclays: Since any policy changes are highly unlikely, the market will focus on the accompanying statement from the BoC meeting. The previous meeting statement dropped any mention of removing policy stimulus from its guidance and said instead “the substantial monetary policy stimulus currently in place remains appropriate”. We remain underweight CAD however, expecting a grind higher in USD/CAD as relative policy diverges.

Commerzbank: At its meeting on 4 December, the Bank of Canada will keep its policy rate unchanged. The BoC will stick to its view that “considerable” monetary stimulus is necessary. A rate hike will not be on the agenda before 2015.

Portal - Show News

Edited December 4, 2013 by kaito kid

[⭐ kaito kid]

Trade signals from Danske Bank (4.12)

EUR/USD: Buy at $1.3512 with a target of $1.3688 and a stop at $1.3509

USD/JPY: Short at 102.74 with a target of 101.43 and a stop at 103.18

GBP/USD: Long at $1.6260 with a target of $1.6475 and a stop at $1.6310

USD/CHF: Short at 0.9095 with a target of 0.8966 and a stop at 0.9136

AUD/USD: Possibly buy lower

USD/CAD: Long at 1.0430 with a target of 1.0721 and a stop at 1.0590

* Danske Bank traders use trailing stop orders