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BOJ forecast to hold in March, probably cut by July – Bloomberg

Analyst at Bloomberg expects BOJ to stay on hold next week, while sees a rate cut in July, as markets now shift their attention to the next big BOJ decision following yesterday’s aggressive ECB easing.

Analyst at Bloomberg expects BOJ to stay on hold next week, while sees a rate cut in July, as markets now shift their attention to the next big BOJ decision following yesterday’s aggressive ECB easing.

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

NZD/USD extends gains alongside Oil, tests 0.6700

The NZD/USD pair extends its upbeat momentum into a second day this Friday, with the bird positively impacted by more stimulus unveiled by the RBNZ and ECB the day earlier.

NZD/USD hovers around hourly 50-SMA

Currently, the NZD/USD pair advances 0.40% to 0.6695, flirting with session highs reached at 0.6700 post-China open. The Kiwi recovers ground and attempts recovery from near 100-DMA (0.6641) in a bid to retest previous highs of 0.6714.

The bulls remain in charge and drive the prices higher mainly on the back of higher commodities’ prices, especially oil, with both crude benchmarks rallying around 1.5%. Moreover, the Kiwi also finds impetus from the minor-recovery in the Asian equities.

With the RBNZ and ECB out of the way, focus now remains on RBNZ Governor Wheeler’s speech and the Fed outcome due next week for fresh momentum.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6720/34 (10-DMA/ 1h 100-SMA), above which it could extend gains to 0.6750/68 (daily R2). To the downside immediate support might be located at 0.6648/41 (daily low/ 100-DMA) and from there to 0.6626/08 (200 & 50-DMA).

The NZD/USD pair extends its upbeat momentum into a second day this Friday, with the bird positively impacted by more stimulus unveiled by the RBNZ and ECB the day earlier.

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

Asian stocks drops as Draghi fails to lift sentiment

The sentiment on the Asian markets remained largely subdued so far this session, with most Asian indices swinging lower as Draghi’s no further rate cut stance overshadows the ECB stimulus-led optimism.

China stocks drive Asia lower

The Chinese equities extend the bearish streak and remain poised to book weekly loss, on the back of persisting risk-off moods combined with the strongest yuan fix so far this year. PBOC set USD/CNY rate at 6.4905 today versus 6.5127 Thursday close. The Shanghai Composite is down nearly 1%, Shenzhen’s CSI300 drops -0.85% and China A50 shares decline -0.65%.

While the Japanese benchmark index, the Nikkei 225 snapped previous rebound and now drops -0.87% to 16,705 points, following the ECB induced sharp gains in the yen against the greenback. Meanwhile, USD/JPY trades -0.07% lower at 113.13 levels.

The Australian stocks are wavering between gain and losses, with the ASX 200 index now inching up 0.15% at 5,157, mainly backed by gold mining stocks after the yellow metal jumped to its highest level since Feb 2015 at $ 1283.70.

The sentiment on the Asian markets remained largely subdued so far this session, with most Asian indices swinging lower as Draghi’s no further rate cut stance overshadows the ECB stimulus-led optimism.

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

Technical analysis of EUR/USD for March 11, 2016

When the European market opens, some economic news on the Italian Industrial Production m/m and German Final CPI m/m is due to be released. The US will deliver the economic data on the Import Prices m/m. So amid the reports, EUR/USD will move with low ... [...]

Technical analysis of USD/JPY for March 11, 2016

In Asia, Japan will release the BSI Manufacturing Index. The US will publish some economic data on the Import Prices m/m.So, there is a probability that the USD/JPY pair will move with low to medium volatility during this day.TODAY'S TECHNICAL LEVEL:Re... [...]

Technical analysis of Silver for March 11, 2016

Technical outlook and chart setups:Silver is looking unchanged now trading at the levels of $15.50/60 looking for an opportunity to push lower as expected earlier. The metal is expected to push lower towards at least $14.60 until prices remain below $1... [...]

Negative rates put more pressure on Japanese banks’ nets interest margin – Fitch

The latest Fitch report highlights impact of Japan’s negative interest rates policy on the country’s banking system.

Key Findings from the report:

Negative interest rates put more pressure on Japanese banks' nets interest margin (NIM)

Short-term direct impact is limited as the negative interest rate is applied only to additional funds placed at the BOJ

Impact of negative interest rates on mega banks to be neutral, with the impact being greater for the smaller, unrated banks

Negative rating implications may stem from other factors, such as failure of Abenomics, worse-than-expected deterioration in the global economy

In the medium to longer term, lower reinvestment yield on assets will lead to net interest margins erosion

The latest Fitch report highlights impact of Japan’s negative interest rates policy on the country’s banking system.

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

USD/JPY recovery remains capped below hourly 200-SMA

The bulls appear to have given up in the Asian trades this Friday, after having several attempts to break above the stiff resistance placed just shy of hourly 200-SMA at 113.40.

USD/JPY supported at 113

The dollar-yen pair is still licking the post-ECB wound and now struggles to extend its recovery mode further beyond 113.35-40 zone as the subdued trading on the Asian markets continue to underpin the safe-haven demand for the yen. At the time of writing, USD/JPY trades muted around 113.20, while Japan’s Nikkei drops -0.90% to 16,705 points.

The major is attempting a recovery from ECB induced lows reached Thursday at 112.63 after the greenback slumped to fresh four-week lows against its major peers.

Meanwhile, the yen pays little heed to the downbeat Japan manufacturing index and remains better bid amid mild risk-averse conditions this session. Later today, nothing of note for the major except for the US import prices data, which is expected to have limited impact on the prices.

USD/JPY Technical levels to watch

In terms of technicals, the immediate resistance is located at 113.48/50 (Mar 9 high/ psychological levels). A break above the last, the major could test 114 (round number). While to the downside, the immediate support is seen at 112.80/79 (daily low) and below that at 112.44/23 (Mar 8 & 9 Low).

The bulls appear to have given up in the Asian trades this Friday, after having several attempts to break above the stiff resistance placed just shy of hourly 200-SMA at 113.40.

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

Technical analysis of Gold for March 11, 2016

Technical outlook and chart setups:Gold has managed to push higher and test recent highs of $1,279.00 before pulling lower again. The metal had push through the levels of $1,283.50 earlier, but dropped lower towards $1,277.00/78.00. As depicted here, t... [...]