Subscribe to RSS

Euro, Yen Drop as China Stimulus Lifts Market Spirits. Will it Last?

The Euro and the Japanese Yen fell as news of a boost to Chinese stimulus efforts lifted risk appetite but investors’ chipper mood may prove fleeting.

Talking Points:

  • Yen, Euro Drop on China Stimulus But Risk Appetite Boost May Be Fleeting
  • US Durables Data, Fed Commentary in Focus as Markets Look for Guidance
  • See Economic Releases Directly on Your Charts with the DailyFX News App

The Japanese Yen and the Euro faced selling pressure in overnight trade as stocks recovered across Asian bourses, reflecting a recovery in risk appetite. Both units had capitalized on slumping sentiment earlier in the week amid the unwinding of carry trades funded in the two low-yielding currencies. On the other side of the spectrum, the risk-geared Australian, Canadian and New Zealand Dollars traded higher.

The MSCI Asia Pacific regional benchmark equity index rose 0.7 percent in a move that seemed to reflect relief after China delivered a much-anticipated dose of monetary stimulus. The PBOC cut the one-year benchmark and deposit lending rates as well as lowered the reserve requirement ratio for banks. Optimism may prove fleeting however. Indeed, news of Chinese easing drove US shares higher but gains evaporated into the session close, with the S&P 500 delivering a sixth consecutive day of losses.

Still, futures tracking the US equities benchmark are trading meaningfully higher in late Asian hours, hinting the chipper may yet carry on through the hours ahead. On the data front, a quiet calendar in Europe will probably see investors looking to July’s US Durable Goods Orders report. Expectations point to a 0.4 percent decline. US news-flow has deteriorated relative to consensus forecasts in recent weeks, opening the door for a downside surprise that may rekindle worries about global growth and fuel renewed risk aversion.

The spotlight then turns to a scheduled speech from New York Fed President Bill Dudley. The influential central bank official is often seen as being at the heart of consensus on the policy-setting FOMC committee. With that in mind, traders will be keen to hear anything that illuminates how recent market turmoil has influenced the likely timing of the US central bank’s first post-QE interest rate hike.

Fed Funds futures now reflect a delay until January 2016 for the onset of tightening. Rhetoric suggesting a hike this year may yet materialize will probably amount to a risk-negative development. Alternatively, a more dovish lean reinforcing the downshift in policy bets may prove supportive for sentiment-geared assets.

Critical Levels
CCY Supp 3 Supp 2 Supp 1 Pivot Point Res 1 Res 2 Res 3
EURUSD 1.106 1.1286 1.1402 1.1512 1.1628 1.1738 1.1964
GBPUSD 1.5455 1.5592 1.564 1.5729 1.5777 1.5866 1.6003

 

0 commentsback to post

Add your comment

Nickname:
E-mail:
Website:
Comment:

Other articlesgo to homepage

100% Withdrawable Bonus on your First Deposit – NordFX

100% Withdrawable Bonus on your First Deposit – NordFX(0)

Up to 150% Bonus for a First Time to binary options Account. For a perfect start, we offer you a 150% bonus for a first-time $5,000 deposit. Link:  Up to 150% Bonus for a First Time Link:  100% Withdrawable Deposit Bonus Link:  55% Deposit Bonus Promotion Link:  DemoCup contest  prize fund is $42000 Available to:

$10 Free Credited into your account – Champion FX

$10 Free Credited into your account – Champion FX(0)

$10 Free Welcome Credited Bonus into your account. Sign up for a ChampionFX Cent live trading account today and get a Free Welcome Forex Credited Bonus worth USD 10 Link:  $10 Free Credited Available to: New and Existing Traders. Ending Date: 31 December 2018 Bonus Offer: $10 Free Welcome Credited into your account to All

Monthly Live Forex Trading Competition – Tickmill Ltd.

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

Forex Monthly Live Trading Competition. Put your forex trading skills to test and win up to $1000 every Month! Forex Live Trading Competition 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

Get $1500 Forex No Deposit Welcome Bonus – InstaForex

Get $1500 Forex No Deposit Welcome Bonus – InstaForex(0)

Get $1500 No Deposit Forex Bonus from InstaForex no need to risk your own money if you have already got funds to earn more money. The $1500 No Deposit Free Bonus from InstaForex is an exciting opportunity to start Forex live trading. Link:  $500 Forex No Deposit Free Bonus Link:  $1000 Forex No Deposit Free

Up to 50% Welcome Bonus on Each Deposit – Fort Financial

Up to 50% Welcome Bonus on Each Deposit – Fort Financial(0)

Up to 50% Welcome Bonus of Every Deposit to All New and Existing Traders. You Deposited $1000 on your account, chose a 50% bonus and got 500 extra dollars to the initial deposit amount. Link: $888 Extra Bonus Amount Promotions Link:  $5 Forex No Deposit Welcome Bonus Link:  Up to 50% Bonus of Every Deposit

300 USD No Deposit Forex Welcome Bonus – CARRAX

300 USD No Deposit Forex Welcome Bonus – CARRAX(0)

300 USD No Deposit Forex Welcome Bonus for 30 calendar days for real trade in the forex market. Only Carrax verified users may participate in the 300 USD No Deposit Forex Welcome Bonus Promotion. Link:  300 USD Forex No Deposit Bonus Withdrawal: Only profits can be withdrawn after 30 days of having the account active.

FX Zone Currency Capital Forex Trading Contest – FXTM

FX Zone Currency Capital Forex Trading Contest – FXTM(0)

FX Zone Currency Capital Trading Contest final Bid Central. Sharpen your forex trading skills completely RISK-FREE as you enter ForexTime Broker simulated forex world of 2017 the FX Zone Currency Capital Contest. Link:  FX Zone Currency Capital Contest Link:  $25 Per Referral Earn up to $10000 Link:  Receive $30 Tradeable Credit Bonus Link:  Loyalty Cashback

$123 Free No Deposit Welcome Bonus – FBS Broker

$123 Free No Deposit Welcome Bonus – FBS Broker(0)

$123 Free No Deposit Forex Bonus of FBS Broker all new members to get a Free bonus of $123 without initial deposits and start a risk-free forex liveForex Trading. Link:  $123 Free Forex Bonus Promotion Link:  100% Deposit Bonus Promotion Link:  $88.8 Lucky No Deposit Bonus (for Malaysian traders) Available to: All new traders Ending

$50 Free No Deposit Bitcoin Bonus Special Promo – UFX

$50 Free No Deposit Bitcoin Bonus Special Promo – 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 Special Bonus Link:  $50 Free No Deposit Bitcoin Bonus Link:  100% Real Money CashBack Promo Link:  $5000 BitCoin Rewards Bonus Promo Available to:

Forex Special Promo FREE Forex Trading Signals – CMSTrader

Forex Special Promo FREE Forex Trading Signals – CMSTrader(0)

Forex Special Promotion for our new clients. Open account and get our FREE Forex Trading Signals with high success claim them Now 91% Success! Link:  Top Social Copy Trading Platforms Link:  FREE trading signals Special Promotion Ending Date:  31 December 2018 Available to:   New Clients only Bonus Offer: Get FREE forex trading signals Special promotion

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