Subscribe to RSS

China’s abrupt rate cut renews concerns about its economic growth

Global Market

Market participants have been left bewildered as, despite a GDP growth of 6.9% in Q3, the People’s Bank of China (PBoC) has abruptly cut interest rates for the sixth time since November 2014. The Chinese government’s aggressive use of monetary policy to jumpstart the Chinese economy has had an adverse effect, with fears renewed about the pace of growth. With economic weakness in China likely to draginto Q4, China Premier Li Keqiang has already stepped forward and educated participants that the 7% growth goal was never set in stone. The Chinese five year plan, which is currently being formulated by China’s top leadership, may play down growth targets for 2016-2020,since despite the vigorous efforts of the government the Chinese economy has failed to pick up.

The Euro has continued to decline across the global currency markets as a result of the European Central Bank’s (ECB) dovish stance towards the Eurozone. Sentiment remains bearish for the Euro as fears escalate of an economic slowdown in Europe following the deflationary CPI reading of -0.1% in September. Mario Draghi’s repeated statement about the ECB implementing additional stimulus measures if needed, as a tool to promote economic growth within Europe, has resulted in market participants increasing bets on further QE in the near future. As downwards pressures mount on thesingle currency, the EURUSD which is already technically bearish may be open to a steeper decline once prices breach past the psychological 1.1000 support.

A risk-off environment has punished the value of the Sterling for an extended period of time. The fears of a slowdown in economic momentum in the UK economy combined with a deflationary CPI release of -0.1% in October has opened the GBPUSD to further declines. Despite the bullish momentum gained in the Sterling last week Tuesday as a result of a hawkish BoE McCafferty highlighting the risks of delaying a rate rise in the UK, the GBPUSD remains technically bearish. If Tuesday’s latest GDP report for the UK economy fails to meet expectations and prints below 0.6%, not only will this provideadditional signs of a slowing economic momentum in the UK economy, but it will also offer a strong reason as to why expectations for a UK interest rate hike will be pushed back into 2016.

EURUSD

The EURUSD is technically bearish on the daily timeframe. Prices are trading below the daily 20 SMA and the MACD has crossed to the downside. A breakdown below the 1.1000 support may open a path to the next relevant support at 1.0850.

EURUSD

GBPUSD

The GBPUSD is technically bearish on the daily timeframe. A breach below the 1.5300 support may open a path to the next relevant support at 1.5100.

GBPUSD

USDCHF

The USDCHF is technically bullish on the daily timeframe. Prices have breached above the 20 and 200 daily SMA. The next relevant resistance is based at 0.9900.

USDCHF

AUDUSD

The AUDUSD is technically bullish on the daily timeframe. Prices are trading above the daily 20 SMA and the MACD has crossed to the upside. As long as prices can keep above 0.7150, there may be an incline to the next relevant resistance at 0.7380.

AUDUSD

0 commentsback to post

Add your comment

Nickname:
E-mail:
Website:
Comment:

Other articlesgo to homepage

$20 Trad able Free Forex No Deposit Bonus – Continue Fx

$20 Trad able Free Forex No Deposit Bonus – Continue Fx(0)

$20 Trad able Free Forex No Deposit Bonus on sign-up applicable on first trading account. Start trading with the $20 Trad able Free Forex No Deposit Bonus amount, you can withdraw you profit amount any time of the day. Link:  $20 Tradable Free Welcome Bonus Available to: All new trading account Bonus offer: $20 Trad

Up to 200% Withdrawable Cashback Rebates – ForexTime

Up to 200% Withdrawable Cashback Rebates – ForexTime(0)

Always aims for profitable promotions for ForexTime Customer, this time they have come up with a 200% Cashback rebate bonus promotion which enables traders to earn up to 10,000 USD withdrawable Cashback bonus. Link:  Receive $30 Tradeable Credit Bonus Link:  FX Circuits Live Trading Contest Link:  Demo Forex Trading Contest Link:  Loyalty Cashback Promotions Link: 

50 USD No Deposit Bonus Trading with Bitcoin – UFX

50 USD No Deposit Bonus Trading with Bitcoin – UFX(0)

Start Forex Trading Bitcoin with UFX and Get a $50 Free Bonus. $50 Free Bonus is subject to your phone verification with UFX Account funding in Bitcoin requires a Bitcoin wallet Link:  $50 Forex No Deposit Bonus Promotion Link:  $50 Free No Deposit Bitcoin Bonus Link:  100% Real Money CashBack Promotion Available to: All new

Start Forex Trading with to get $100 Free Bonus – ACY

Start Forex Trading with to get $100 Free Bonus – ACY(0)

Start Forex Trading with ACY to get $100 Free Bonus. Initial deposit greater or equal to $400, you can claim $100 Forex Free Bonus. Link: Start Trading with to get $100 Bonus Available to: New and Existing clients Ending Date: 31 December 2017 Bonus Offer: Start Forex Trading with ACY to get $100 Bonus to

$888 Extra Forex Bonus Amount Promotions – FortFS

$888 Extra Forex Bonus Amount Promotions – FortFS(0)

$888 Extra Bonus Amount Promotions, All accounts take part in the 888 Extra Bonus Amount Promotions with the exception of Newbie, PRO and STAR live accounts. Link: $888 Extra Bonus Amount Promotions Link: $5 Forex No Deposit Welcome Bonus Link: Up to 50% Bonus of Every Deposit Link: 15% Support Margin Deposit Bonus Available to:

Deposit $500 to Receive a $350 Special Bonus – AvaTrade

Deposit $500 to Receive a $350 Special Bonus – AvaTrade(0)

Deposit $500 to receive a $350 Special Bonus up to 14000. This 35% Special Bonus Promotion is available to USD, EUR, AUD and GBP base currency accounts Link:  100% Bonus to Your First Deposit Link:  30% Sign-up Bonus on your Deposit Link:  30% Enjoy Reduction on Spreads Available to: All new account Ending Date: 31

$50 No Deposit Forex Cash Bonus today – Vantage FX

$50 No Deposit Forex Cash Bonus today – Vantage FX(0)

Open a live trading account and claim your $50 No Deposit Forex Cash Bonus today. $50 No Deposit Forex Cash Bonus is valid for two calendar months from the date it is credited to your trading account. Link:  $50 No Deposit Forex Cash Bonus Available to: New and Existing clients Ending Date: 31 December 2017

Forex Monthly Live Trading competition – Tickmill Ltd.

Forex Monthly Live Trading competition – Tickmill Ltd.(0)

Forex Monthly Live Trading Contest. Put your forex trading skills to test and win up to $1000 every Month! Forex Live Trading Contest is only available for clients of Tickmill Ltd.(FSA Regulated) Link:  Weekly Demo Race Trading Contest Link:  $30 Free Welcome Bonus Offer Link:  Forex Monthly Live Trading Contest Available to: All new traders

50% Deposit Bonus and $30 Free Trading Bonus – XM

50% Deposit Bonus and $30 Free Trading Bonus – XM(0)

Get 50% Deposit Bonus and $30 Free Trading Bonus. XM offers its clients multiple trading benefits to stay at XM, starting with a $30 Free Trading Bonus “No deposit required” Link:  $30 Forex No Deposit Bonus Link:  50% Deposit Bonus up to $500 Available to: All new trading account Bonus offer: 50% Deposit Bonus and

$50 Forex No Deposit Bitcoin Bonus Promotions – UFX

$50 Forex No Deposit Bitcoin Bonus Promotions – UFX(0)

$50 Forex No Deposit Bitcoin Bonus Special Promotion to all new trading account holder. Start Forex Trading Bitcoin with UFX and  Get a $50 No Deposit Bonus Link:  $50 Forex No Deposit Bonus Promotion Link:  $50 Free No Deposit Bitcoin Bonus Link:  Halloween Trick or Trade Competition Available to: All new trading account Ending Date:

read more

Forex Featured Broker

Contacts and information

ForexDepositNews.com Forex Deposit Bonus, Forex No Deposit Bonus, Forex Live Contest, Forex Demo Contest, Free Forex Bonus Forex Brokers Review and Other All Forex promotions.

ForexDepositNews.com

Social networks

Most popular categories