Gold rise climbs on a weaker U.S. dollar

Gold price climbed on a weaker U.S. dollar. The U.S. dollar declined against other currencies after the release of the weaker-than-expected U.S. services PMI data. The Institute for Supply Management released its non-manufacturing purchasing managers' ... [...]

USD/JPY crumbles below 118.00

FXStreet (Córdoba) - USD/JPY came under strong pressure amid a broad USD sell-off and lost almost 200 pips since the beginning of the American session, breaking below several support levels.

USD/JPY plummeted and dipped below the 118.00 level, as stocks losses added momentum, to hit a fresh 2-week low of 117.50 before finding support. Having recovered from session lows, USD/JPY is currently trading at 118.05, still recording a 1.6% daily loss.

USD/JPY technical levels

As for technical levels, next supports are seen at 117.50 (Feb 3 low), 116.46 (Jan 21 low) and 115.96 (Jan 20 low). On the other hand, immediate resistances could be faced at 120.00/03 (psychological level/Feb 3 high), 120.23 (50-day SMA) and 120.58 (100-day SMA).

USD/JPY came under strong pressure amid a broad USD sell-off and lost almost 200 pips since the beginning of the American session, breaking below several support levels.

(Market News Provided by FXstreet) [...]

EUR/GBP: Strong bounce, double bottom?

FXStreet (Córdoba) - The euro rebounded sharply against the pound and rose more than 80 pips from the lows erasing weekly losses. EUR/GBP is testing a downtrend line from January highs and a break above could give more bullish momentum to the pair.

The euro gained strength during the last hours across the board as stocks failed to sustain the recovery and tumbled to fresh lows. The risk aversion environment boosted EUR/GBP, that was falling before on the back of data from the UK.

Tomorrow the Bank of England will release a statement with the decisions on monetary policy, the minutes of the meeting and the Quarterly Inflation report that is likely to impact on the pound.

EUR/GBP: Double bottom?

Three hours ago the pair bottomed at 0.7524 that is also the lowest level it reached two weeks ago. Today it bounced from the mentioned level but so far it has remain below 0.7600 but could have formed a double bottom. According to the double bottom pattern a break above 0.7660 could trigger a rally toward 0.7800.

Currently it trades at 0.7680/85, at the same level it closed yesterday. It hit a fresh daily at 0.7608 but so far it has been unable to hold on top of 0.7600.

The euro rebounded sharply against the pound and rose more than 80 pips from the lows erasing weekly losses. EUR/GBP is testing a downtrend line from January highs and a break above could give more bullish momentum to the pair.

(Market News Provided by FXstreet) [...]

US Dollar collapses to 97.60

FXStreet (Edinburgh) - The greenback, in terms of the US Dollar Index, is nose-diving below the 98.00 support today amidst a generalized offered tone.

US Dollar much weaker on sentiment, Dudley, data

The selling pressure around the dollar has been intensifying since New York Fed’s Dudley stressed that continued financial tightening would weigh on FOMC.

Fanning the flames, US ISM Non-manufacturing and Markit’s Services PMI have both come in below expectations. The positive news has come in from the labour market, where the ADP report bettered estimates, although the reading remained largely unnoticed by markets.

Mounting selling pressure has dragged the index to fresh 2-month lows in the 97.60 area, levels last tested in mid-December.

US Dollar significant levels

As of writing the US Dollar Index is losing 1.28 % at 97.60 and a breakdown of 97.22 (low Dec.15) would aim for 96.92 (200-day sma) and then 96.58 (6-month uptrend). On the other hand, the next hurdle lines up at 99.88 (high Jan.29) followed by 100.00 (psychological level) and then 100.60 (2015 high Dec.3).

The greenback, in terms of the US Dollar Index, is nose-diving below the 98.00 support today amidst a generalized offered tone...

(Market News Provided by FXstreet) [...]

Critics upset with PM Cameron for accepting EU’s “watered-down” deal

FXStreet (Mumbai) - Brussels yesterday made an offer to British PM David Cameron which according to critics contained "watered-down" pledges. As per the offer EU migrants will get “gradually increasing access” to benefits after they come to the UK . Cameron had demanded a complete ban on EU migrants receiving any benefits. The offer has been dubbed as “pathetic” and “insubstantial”. The PM has however welcomed the president of the European Council, Donald Tusk’s offer confirming that he “sure would” take the offer.

Cabinet sources have blamed Cameron for setting the ball ball rolling for his in campaign by accepting the offer. Cabinet ministers have threatened to defy David Cameron and speak against his EU deal in public. Ukip leader, Nigel Farage addressing the European Parliament has said "It wasn't suppose to be like this. No treaty change, no powers returned to the United Kingdom, no controls over our borders at all. It was hardly worth the wait. It's really rather pathetic." Downing Street on the other hand has asked all ministers to adhere to “collective responsibility” and support the PM till at least the Brussels meeting later in the month. Former defence secretary Liam Fox is "certain" that four or five serving Cabinet ministers will render their support in favor of Brexit. He also warned that if the PM attempted to suppress the opposition he would risk a ‘lasting split’ in the Tory Party.

Home Secretary Theresa May has hinted that she could support the EU’s proposals if they provided "a basis for a deal". This has rendered a major boost to David Cameron who has asked his MPs to not pay attention to ‘constituency associations or the threat of boundary reviews’ while deciding on their stance. "If you passionately believe in your heart that Britain is better off out, you should vote that way. If you think Britain is on balance better off in, go with what you think. Don't take a view because of what your association my say, or a boundary review", Cameron said.

Cameron will meet the European Council this month to negotiate more reforms in favour of UK. Farage feels it will be humiliating for UK if Cameron pleads before other leaders requesting “please can we have some more”. Eurosceptic Cabinet ministers warned that the EU deal will fail to solve the migration problem in UK. Critics complained that the “watered-down” deal has not lived up to the demand that migrants cannot claim in-work benefits for four years post their entry into UK. Conservative MPs are also disappointed because Cameron could not manage to make EU accept the demand that migrants would not be allowed to send benefits back to their home countries. According to the offer made, the benefits will be reduced by "indexing" migrants to the standard of living abroad. Cameron however continued to stress that the changes suggested in the offer would "make a difference" though he admitted that the new offer will not help to reduce net migration to the "tens of thousands”.

European Commission chief Jean-Claude Juncker addressed MEPs in Strasbourg on Brexit ahead of the scheduled EU meeting in the middle of this month. In his opinion "The settlement that has been proposed is fair for the UK, fair for the other 27 states and fair for the European Parliament."He also pointed out that UK’s migrant problem is a “result" of Tony Blair's decision to not use the transitional controls which Juncker feels would have hindered the influx of migrants into UK. He believes that the offer made will in fact enable “UK to use the safeguard mechanism to address the consequences of that that decision."

Brussels yesterday made an offer to British PM David Cameron which according to critics contained "watered-down" pledges. As per the offer EU migrants will get “gradually increasing access” to benefits after they come to the UK . Cameron had demanded a complete ban on EU migrants receiving any benefits. The offer has been dubbed as “pathetic” and “insubstantial”. The PM has however welcomed the president of the European Council, Donald Tusk’s offer confirming that he “sure would” take the offer.

(Market News Provided by FXstreet) [...]

Spain’s services PMI falls to 54.6 in January

Markit Economics released services purchasing managers' index (PMI) for Spain on Wednesday. Spain's services purchasing managers' index (PMI) fell to 54.6 in January from 55.1 in December. It was the lowest level since December 2014 New business and e... [...]