Market : Poor Economic Growth Responded by The Market (Jan 2016 No3)
GBPUSD For further trade until the close of trading tomorrow, Mr Tri Utomo estimate GBPUSD pair could fall further to support the range of 1.4138 to 1.4085. But if there is a correction will go up to around 1.4231.
GBPUSD For further trade until the close of trading tomorrow, Mr Tri Utomo estimate GBPUSD pair could rise again to the resistance range 1.4288 to 1.4419. But if there is a correction will come down to around 1.4078.
BOE Pounds, which had strengthened in European session yesterday must be trimmed back after the statement of the governor of the Bank of England (BOE) in an event in London overnight. In his speech at the event said that the BOE no agenda to raise interest rates. After the statement that had been torn to market with a positive outlook of the domestic inflation rate so disappointed and sell sterling fell to a 7-year lows against the dollar.
EURUSD For further trade until the close of trading, Mr Tri Utomo estimate the EURUSD pair could fall to support a range of 1.0837 - 1.0778, but in case the correction may go up to the range of 1.0924-1.0955.
Dollar Index For the latest movements in the spot market, the dollar index which measures the strength of the US dollar against major rivals after a strong move opened at 99.09 early Asian session, and is now moving in the range of 99.15 (10:30:00 GMT). For further movement Mr Ti Utomo expects the index to move within the range resistance at 99.30 to 99.41 and 98.85 to 98.45 range support.
Pound sterling still weak
- The movement of pounds throughout the day since the Asian session on Thursday (21/01) difficult to pass on the rebound the previous trading. In recent days some UK data showed positive data and potentially foster the exchange rate, but the sentiment British emigration plan memorandum of the European Union into a strong streak for the market to pick pound riskier assets amid the global turmoil.
- Although fundamentally the global economic condition is still stable, but the market sentiment last few days show great pessimism about the prospects of the economy so that the risky assets into safe-haven assets transferred last few days.
- One more thing that weaken the pound comes from the BOE governor Mark Carney's speech yesterday, where in his speech mentioned that the BOE no agenda to raise interest rates. After the statement that had been torn to market with a positive outlook of the domestic inflation rate so disappointed and sell sterling fell to a 7-year lows against the dollar.
- In terms of the movement of the US dollar index trading this evening, there are several US economic data were released as the data unemployment claims and Philly Fed manufacturing data also. Both of these data was allegedly able to give power for the dollar to rebound but the sentiment is the drop in the price of crude oil is still dominant.
- Pound exchange rate movements in the European session (11:35:35 GMT) moves weakness against the US dollar, having opened weaker at 1.4191 in early trading (0000 GMT), the GBPUSD pair fell 44 pips or 0.4% and the value of the rolling is at 1, 4147.
- For further trade until the close of trading tomorrow, Mr Tri Utomo estimate GBPUSD pair could fall further to support the range of 1.4138 to 1.4085. But if there is a correction will go up to around 1.4231.
Pounds Resurrected Back By Record UK Unemployment Data
- Pounds, which had collapsed to its lowest level in 7 years against the US dollar overnight trading session after the speech hawkish central bankers England (BOE), the European trading session on Wednesday (20/01) successfully continued the rebound that is formed from the Asian session by the UK unemployment data which break a record low.
- Strengthening pound volume increased after the British national statistics office this afternoon to announce the data the unemployment rate dropped to 10 year lows despite wage increases declined in December 2015 from the previous month.
- Observing the BOE governor Mark Carney's speech last night, in his speech mentioned that the BOE no agenda to raise interest rates. After the statement that had been torn to market with a positive outlook of the domestic inflation rate so disappointed and sell sterling fell to a 7-year lows against the dollar.
- In terms of the movement of the US dollar index trading this evening, there are several US economic data released, which of the 3 data is important only 2 data expected to remain steady while data building permits are expected to worsen. Data are expected to stabilize the CPI and Housing Start, and if this is positive data the US dollar has the potential to rebound back.
- Pound exchange rate movements in the European session (10:35:35 GMT) strong moves against the US dollar, having opened weaker at 1.4156 in early trading (0000 GMT), the GBPUSD pair gained 19 pips or 0.1% and the value of the rolling is at 1, 4175.
- For further trade until the close of trading tomorrow, Mr Tri Utomo estimate GBPUSD pair could rise again to the resistance range 1.4288 to 1.4419. But if there is a correction will come down to around 1.4078.
Market Review Forex: Pound Falls to 7 Year Low
- Forex market trading session ended the second day of this week's America early this morning (20/01), the movement of major currencies were mixed with the exchange rate strengthening Aussie managed to print larger volumes and pound into a disappointing rate. US dollar became the only major managed exchange rate rose slightly to respond to China's economic growth data.
by Tri Utomo
- Poor economic growth in China actually responded positively by the market, considering these conditions will make the central bank provide an additional injection of monetary stimulus that would benefit all parties including countries that become trading partners. Previous global markets worried with Chinese conditions so that in the first 2 weeks of this year the market hunting for safe-haven assets.
- Although not yet confirmed China's central bank will provide the stimulus, but the market is optimistic that forex trading overnight in volatile normal. Where in addition to US dollars, other exchange rates such as the euro and the natural strengthening aussie dollar. While the main rate cut in addition to the yen and the pound also swissfranc.
- Pounds, which had strengthened in European session yesterday must be trimmed back after the statement of the governor of the Bank of England (BOE) in an event in London overnight. In his speech at the event said that the BOE no agenda to raise interest rates. After the statement that had been torn to market with a positive outlook of the domestic inflation rate so disappointed and sell sterling fell to a 7-year lows against the dollar.
- Likewise, the yen, trading yesterday shrink after a winner in forex trading since the early years after China's poor economic conditions. But the positive response of the market to make the exchange rate of Chinese economic data safehaven that have weak fundamentals have to admit defeat.
ZEW Data Above Expectations Not Strong Lift Euro
- The movement of the euro exchange rate that has been weak since the start of trading in Asia (19/01), hard to get out of selling pressure earlier in the week to trade the European session today despite the positive sentiment could make a strong EURUSD pair could move.
- However, the strong dollar to make a pair limp afternoon trade resumed negative movement before. The positive sentiment could strengthen the EURUSD pair in the middle of the European session while ZEW survey released data on consumer sentiment in January were lower than in December but above economists' expectations in advance. ZEW Economic sentiment dropped to 10.2 after 16.1 in December in the position of index points.
- In terms of the movement of the US dollar index trading this evening, there is no strong economic data and positive can drive the dollar after a long holiday trade since last weekend. Seeing that there are fundamental dollar still has the potential to continue strengthening.
- Euro exchange rate movements in the European session (11:20:35 GMT) moves weakness against the US dollar, having opened weaker at 1.0893 in early trading (0000 GMT), the exchange rate of Euro fell 23 pips or 0.2% and the value of the rolling is at 1.0870.
- For further trade until the close of trading, Mr Tri Utomo estimate the EURUSD pair could fall to support a range of 1.0837 - 1.0778, but in case the correction may go up to the range of 1.0924-1.0955.
US Dollar European Session By Survive Strong Chinese GDP Data
- Forex market focus on China's economic growth data emapt quarter and throughout 2015 to make the movement of the US dollar amid lonely consolidated economic data significantly affecting the movement of the currency itself.
- After Chinese GDP data is released, the market to buy a lot of dollars because the data was in line with expectations despite the economic growth of the country's GDP decreased by the worst for 25 years. Chinese statistics office announced throughout 2015 GDP rose only 6.9 percent and a quarterly basis in the fourth quarter grew at 6.8% position. Likewise, the data on industrial production and retail turnover in December despite declining but still within the range of expectations.
- In the US session there is no strong economic data and positive can drive the US dollar after a long holiday trade since last weekend. Seeing that there are fundamental dollar still has the potential to continue strengthening.
- For the latest movements in the spot market, the dollar index which measures the strength of the US dollar against major rivals after a strong move opened at 99.09 early Asian session, and is now moving in the range of 99.15 (10:30:00 GMT). For further movement Mr Ti Utomo expects the index to move within the range resistance at 99.30 to 99.41 and 98.85 to 98.45 range support.
US Dollar European Session By Survive Strong Chinese GDP Data
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