Daily Markets News From FBS

[⭐ kaito kid]

Trade signals from Danske Bank (11.12)

EUR/USD: Long at $1.3735 with a target of $1.3818 and with a stop at $1.3693

USD/JPY: Short at 102.97 with a target of 101.78 and with a stop at 103.45

GBP/USD: Long at $1.6325 with a target of $1.6535 and with a stop at $1.6385

USD/CHF: Short at 0.9095 with a target of 0.8766 and with a stop at 0.8985

http://fxbazooka.com/en/analitycs/show/950

AUD/USD: Long at 0.9075 with a target of 0.9204 and with a stop at 0.9065

USD/CAD: Long at 1.0612 with a target of 1.0804 and with a stop at 1.0552

* Danske Bank traders use trailing stop orders

[⭐ kaito kid]

US: budget deal & Volcker rule

It was an important day for the US economy: the Republican and Democratic parties reached a deal on a 2014/15 budget draft. The new budget is designed to ensure the stability of fiscal policy for the next 2 years. According to the document , the taxes in the US won't rise, but the deficit will be reduced.

Unfortunately, it is still too early to say the US budget problems are over. In the coming days, the draft will be sent for approval of the House of Representatives and the Senate. The process may not be as fast as we would like to see it. Republican Senator Marco Rubio has already said that the deal "cancels the past efforts to reduce costs, rather than to take measures to combat escalating costs." In addition, the problem of the debt ceiling will return into the limelight in early 2014.

In addition to the budget deal, it is worth noting the adoption of the final version of the "Volcker rule". US banks will no longer be able to make big trading bets with their own money what was a hugely profitable business for Wall Street before the credit crisis. After the introduction of new legislation in 2015, profit of the largest US banks may fall significantly.

http://fxbazooka.com/en/news/show/786

[⭐ kaito kid]

EUR/USD: secrets of resilience

The EUR/USD currency pair saw a short-lived drop toward the $1.3740 (December bullish channel support) during the European session, but found support there and quickly bounced to fresh daily highs at $1.3775.

The major currency pair didn’t show any strong immediate reaction to the today’s budget deal in Washington. The budget accord evidently increases chances for the earlier QE tapering in US, but, as many economists underline, it still needs to pass both houses of congress and does not address the debt ceiling issue. What is more, EUR is supported by the year-end capital repatriations by European banks. Markets have also become more optimistic on the EU banking union prospects these days.

We would expect the rally to continue in the coming days. EUR/USD has all the chances to retest the $1.3800/3830 area. However, a sustained break above here seems unlikely for now. The pair is expected to top around the $1.4000 mark – this is the 5-year trend line. Next support lies at $1.3650.

Chart. Daily EUR/USD

http://fxbazooka.com/en/analitycs/show/951

[⭐ kaito kid]

Dec. 12: Asian session

Asian shares fell on the reduced demand for risk appetite. MSCI’s broadest index of Asia-Pacific shares outside Japan fell by 1%, its sharpest one-day fall in 3 weeks. Nikkei 225 index fell by 1.15%. Market attention is focused on the next-week’s Fed’s Dec. 18 meeting. Increased expectations of a possible QE tapering raise demand for the safe currencies.

AUD/USD opened with a 30-pip gap down around $0.9030. Aussie got hit by the increased risk aversion despite the growth of Australian employment.

NZD/USD edged higher to $0.8286 after it opened with about 15-pip gap up, but is trading below yesterday’s high at $0.8310. Kiwi managed to rise as the Reserve Bank of New Zealand maintained its hawkish stance on Thursday, signaling that interest rates could start rising in the first half of next year.

USD/JPY opened with a gap up at 102.60 and edged a bit up after touching 102.14 yesterday. US dollar strengthened as the market players got positioned for the Fed’s QE tapering next week.

[⭐ kaito kid]

Key currency options (Dec. 12)

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: $1.3750, $1.3760, $1.3765, $1.3835, $1.3850;

GBP/USD: $1.6235 (large), $1.6245;

USD/JPY: 101.50, 103.00, 103.50;

AUD/USD: $0.9100, $0.9200;

USD/CAD: 1.0590, 1.0600, 1.0600, 1.0620;

EUR/CHF: 1.2225, 1.2235;

EUR/AUD: 1.5170.

http://fxbazooka.com/en/news/show/791

[⭐ kaito kid]

Trade signals from Danske Bank (12.12)

EUR/USD: Long at $1.3765 with a target of $1.3870 and with a stop at $1.3710

USD/JPY: Long at 102.45 with a target of 104.58 and with a stop at 101.55

GBP/USD: Long at $1.6325 with a target of $1.6475 and with a stop at $1.6255

USD/CHF: Short at 0.9095 with a target of 0.8766 and with a stop at 0.8941

AUD/USD: Possibly sell

USD/CAD: Long at 1.0612 with a target of 1.0804 and with a stop at 1.0552

* Danske Bank traders use trailing stop orders

[⭐ kaito kid]

Dec. 12: European session

European stock markets are trading in the red for a third day in a row. Tuesday's congressional budget deal has boosted the expectations for the US monetary stimulus to be reduced in December. Eurostoxx 50 index is losing 0.24% as of writing.

The ECB’s president Mario Draghi said that the central bank is well aware of downside risks low inflation poses, but doesn’t see deflation in Europe. According to Draghi, the ECB has plenty of instruments and is ready to act. There’s really nothing new compared with the previous week, but EUR/USD corrected to $1.3765. EUR/CHF which spiked earlier up to 1.2244 on the comments from the SNB formed a shooting star at H4 and declined by 20 pips.

GBP/USD has recovered from the daily low of $1.6350 to $1.6400. USD/CHF has hit a two-year low, testing the levels below the $0.8890 support.

http://fxbazooka.com/en/news/show/793

[⭐ kaito kid]

BCC: UK economy recovers faster

Great Britain's economy will recover above its pre-recession 2008 peak in Q3 2014, the British Chambers of Commerce (BCC) said on Thursday.

The economy will expand at its fastest rate in seven years in 2014, thanks to strengthening household consumption. The business group forecasts economic growth to rise to 2.7% in 2014, an upgrade from the forecasts of 2.2% it made in August.

A year ago the expectations were much gloomier: the BCC predicted the pre-recession peak would not be reached until 2016.

http://fxbazooka.com/en/news/show/794

[⭐ kaito kid]

BofA: bullish on USD

Bank of America remains bullish on the US currency. They continue to see USD index weakness as corrective and temporary before the larger bulltrend resumes for a move towards 82.33/82.67 and beyond.

"Now, we are on increased alert for a base and bulltrend resumption from the 79.95/79.82 zone. An impulsive break of 80.23 would confirm that the upturn has resumed," BofA projects.

"On the downside, key support is seen at 78.99 (Oct-25 low) below here invalidates our bullish USD index view and says we are in a greater choppy environment that currently anticipated," BofA adds.

Source: Bloomberg

http://fxbazooka.com/en/analitycs/show/957