Daily Market Analysis by FxGrow

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Daily Market Analysis – 12th May, 2015
By FxGrow Research & Analysis Team

Euro lower as Greek crisis weighs on investor sentiment

On Monday Eurozone finance ministers confirmed that there has been progress in talks between Athens and its creditors but more work needs to be done over the next few days.

Greece said on Monday it repaid IMF €750 million, €1.5 billion payment is due in June and a further €3 billion to the ECB in July.

As the Greece situation continues Euro came under pressure and remains vulnerable to further downside risks.

In Australia, March housing finance data rose 1.6%, and as a result AUDUSD is trading above 0.7900, meanwhile Australia's business confidence remained unchanged in April.

The yield on the US 10-year is at 2.27%, Australia's 10-yr is yield is at 3% and Japan's 10-year yield is at 0.4%.

Japan's Nikkei is down 0.6 percent, amid concerns of volatility in bond markets.

Bank of England kept its interest rate unchanged at 0.5% in April and kept the size of its asset-purchases at 375 billion pounds.

Crude Oil is trading lower in the Asian trading session at 59.18

Gold has recovered its losses and is trading at 1184.56 while Silver is weak at 16.26

12th May 2015 – 07:28hrs GMT

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Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

 

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Daily Market Analysis – 13th May, 2015
By FxGrow Research & Analysis Team

Bond Sell off weighs on Indices and Stocks Globally

A sharp sell-off in government bonds is dragging major global Indices lower. The global Bond sell off has left many investors nervous with FTSE100, S&P 500 and Nasdaq100 ending in red.

The 10-year US Treasury yield rose to 2.30%, German 10-year Bunds rose to 0.713%, Italian 10-year bonds rose to 1.867% while Spain's 10-year bonds rose to 1.819%

After Greece paid 750 million euros to the IMF on Monday, its financial condition remains weak. Following the news Euro rose more than 100 pips to cross 1.1260 yesterday.

In Australia wage price index fell to 0.5% AUDUSD is high on Australian yields and that the home loans approval rose to 1.6% in March.

In China Retail Sales fell to 10.0%, Industrial Production is at 5.9% while Fixed Assets Rural is at 12.0%

UK manufacturing production rose to 0.4% while analyst’s expectations were for a 0.3% increase. Following the news GBPUSD climbed to 1.5700

WTI Crude Oil rose to 60.75 amid Bond selloff and the news that Saudi has launched airstrike on Yemen again.

Gold is trading higher in the Asian trading session at 1194.70 after the slump in the global equity markets while Silver extends its gains at 16.63

13th May 2015 – 06:54hrs GMT

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

 

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Daily Market Analysis – 14th May, 2015
By FxGrow Research & Analysis Team

Euro, Gold rally on disappointing US retail sales data

US Retail sales remained flat in April, while expectations were of a 0.2% growth. Weak retail sales hint trouble in the US Economy and that the US consumers were reluctant to spend.

Following the news Euro and Gold rallied amid weak US dollar across the board. EURUSD gained more than 100 pips to close above 1.1360

Data coming out of Greece shows that it went into a recession during the first quarter of the year, with problems of unemployment, deflation, and political uncertainty.

The Euro zone's economic output climbed to 0.4% in the first quarter of 2015. This reflects the Euro zone's efforts to recover from the debt crisis amid stimulus provided by the European Central Bank.

In New Zealand Retail sales rose to 2.9% indicating that the domestic market is strong. Following the news Kiwi rallied above 0.7540

In Germany GDP growth for first quarter of 2015 was 0.3% while analyst expected a 0.5% growth.

NYMEX Crude Oil is weak in Asia at 60.15$ a barrel on strong production outlook.

Gold climbed to a 5 month high after weak US retail sales data trading at 1215.44 in the Asian trading session, while Silver continues its bullish streak at 17.19

14th May 2015 – 06:40hrs GMT

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

 

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Daily Market Analysis – 15th May, 2015
By FxGrow Research & Analysis Team

Stock markets surge as US Initial Jobless Claims drop to 264K

US unemployment claims unexpectedly dropped to 264,000 which reflect that the labor market condition is strong. Following the news Stock markets surged and ended in Green, while Euro pulled away from its 3 month peak.

European Central Bank president, Mario Draghi said that QE will remain in place and ECB will continue its monthly 60 billion euro bond buying programme.

In Greece there is a potential risk that it will default on its debt which could create panic in the currency markets. Meanwhile talks about the €7.2 billion bailout funds that Greece needs will continue today.

In China Premier Li Keqiang said there are signs of economic growth following which Asian markets surged. Hang Seng index was up 0.52% while Nikkei 225 was up 0.53%

In Canada new home prices remain unchanged in March while sales of existing homes surged 4.1%.

Bank of Japan Governor Haruhiko Kuroda said the underlying trend in inflation has improved steadily and saw no need for further easing now.

Crude Oil is down in Asia at 60.50$ amid news that IEA expects Oil supply to remain High.

Gold remains bullish trading at 1219.33 in the Asian trading session, while Silver is flat at 17.35

15th May 2015 – 07:38hrs GMT

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

 

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Daily Market Analysis – 18th May, 2015
By FxGrow Research & Analysis Team

US Dollar tumbles on concerns over US Economy

On Friday University of Michigan Confidence survey fell for the month of May indicating that there is no robust rebound in the US economy. The consumer sentiment index was 88.6 for May as against the analyst expectations of 95.9

US Economy faces reduced production and employment from lower oil prices, falling exports, and rising imports from a stronger dollar.

US Industrial production fell 0.3% in April for a fifth month pushing down the dollar and U.S. bond yields.

Asian markets are down on Monday and US Dollar stays weak amid a basket of major currencies after weak signs from the US Economy.

Globally investors are concerned over the weakness of the US economy, slowdown in China and problems in the Eurozone.

Rise in the Euro zone debt yields is supporting the EURUSD which is trading above 1.1400 in the Asian trading session.

In Japan Industrial production fell to -0.8% while analyst expectations were at -0.3% for the month of April.

In Canada manufacturing sales climbed to 2.9% in March which was above the market expectations of a 1.0% gain.

Crude Oil is higher trading above 61.30$ amid news of conflicts in Yemen and Iraq.

Gold remains bullish trading at 1227.94 in the Asian trading session, while Silver is strong at 17.66

18th May 2015 – 07:18hrs GMT

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

 

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Daily Market Analysis – 19th May, 2015
By FxGrow Research & Analysis Team

Asian markets and Euro lower on Greece concerns

Asian markets are down on renewed concerns over Greece and Euro remains under pressure trading below 1.1300 Investors fear of a Greek bankruptcy as the Greek Prime Minister Alexi Tsipras said the country is running out of funds.

Greek Finance minister said on Monday that it is getting closer to a deal with its lenders that would help it meet debt repayments next month.

The possibility of a Greek default or exit from the Eurozone can cause big intraday swings and High volatility in the coming weeks.

Eurozone is due to release German ZEW Economic sentiment and Euro-Zone CPI today, while UK will release its Consumer Price Index and Retail Price Index.

The Australian dollar sank after the Reserve Bank of Australia released minutes showing the board continued to see it as too strong given the current economic conditions.

The RBA said that further interest rate cuts are possible stating that members did not see this as limiting the board's scope for any action that might be appropriate at future meetings.

NZDUSD was up after the RBNZ reported higher inflation expectations going forward. The central bank said expectations were for a gain of 1.32% from 1.11% seen in the first quarter.

Crude Oil is down at 59.73$ due to a stronger US Dollar and the news that Saudi exports reached a 7-year high.

Gold is trading lower this morning at 1219.70 while Silver is weak at 17.39

19th May 2015 – 07:29hrs GMT

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

 

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Daily Market Analysis – 20th May, 2015
By FxGrow Research & Analysis Team

Euro collapses after ECB Plans to Increase Bond Purchases

The European Central Bank plans to increase bond purchases as a part of its €1.1 trillion program in the coming weeks. This assured the investors globally that ECB will take necessary steps to meet their monthly bond-purchase target of €60 billion.

The comments made by ECB board member Benoit Coeure triggered a rally in European stock and bond markets and weakened the Euro. Coeure also hinted that ECB may push interest rates further below zero when deciding monetary policy.

The ECB has to decide whether it is willing to apply haircuts on debt it will accept from Greek banks under its ELA program as it will not risk a meltdown of Greek banks. Greece is running out of time as it has just two weeks before it runs out of cash and defaults, since its next payment is due on 5th of May.

Soon after the news EURUSD came under heavy selling pressure and is currently trading below 1.1100 in the Asian trading session.

In Germany Investor sentiment fell for the second month. The ZEW German Economic sentiment fell to 41.9 while analyst expectations were at 49.0 Germany’s Producer Price Inflation rose to 0.1% while analyst expectations were for a rise of 0.2%

In UK Inflation turned negative for the first time since 1960, as per expectations of the Bank of England GBP Consumer Price Index fell to -0.1% in April.

In US Housing Starts and Building Permits surged more than expected in the month of April. According to Ted Wieseman, an economist at Morgan Stanley "The strong rebound in housing starts confirmed expectations for housing to accelerate substantially in the second quarter and be a stand-out growth contributor amid otherwise sluggish indications for a pickup in GDP growth".

In Japan Economy grew more than expected to 2.4% in first quarter. According to Marcel Thieliant, a Japan economist at Capital Economics "The acceleration in GDP growth last quarter was mostly due to a jump in inventories, and a range of indicators point to a slowdown in the second quarter".

Crude Oil is higher in the Asian trading session at 58.81$ ahead of the EIA's weekly Crude Oil data.

Gold is trading lower this morning at 1207.14 while Silver is up at 17.10

20th May 2015 – 07:55hrs GMT

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

 

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Daily Market Analysis – 21st May, 2015
By FxGrow Research & Analysis Team

FOMC Minutes show reduced likelihood of June Rate Hike

The Federal Open Market Committee (FOMC) minutes indicate a consensus that the weakness in Q1 growth was transitory and that some of the recent weakness in the pace of economic activity might persist. The minutes show a reduced likelihood of a June rate hike with only "a few" participants expecting conditions would justify raising the fed funds rate at that time.

Many participants, however, thought it unlikely that the data available in June would provide sufficient confirmation that the conditions for raising the target range for the federal funds rate had been satisfied, al-though they generally did not rule out this possibility.

However, most participants felt that the timing of the first increase in the target range for the federal funds rate would appropriately be determined on a meeting-by-meeting basis and would depend on the evolution of economic conditions and the outlook.
In UK Bank of England minutes show consensus to maintain the benchmark interest rate at all-time low of 0.5% this month and to keep the size of the central bank's bond portfolio at 375 billion pounds.

According to Bank of England "While there was a range of views over the most likely future path for bank rate, all members agreed that it was more likely than not that bank rate would rise over the three-year forecast period".

In Canada wholesale sales rebounded in March which is a positive sign for Canada's economy.

According to the Bank of Canada Governor- Stephen Poloz "Not only are the headwinds of the global financial crisis still blowing, but now we're also dealing with lower prices for oil and other key commodities, which previously were a key growth engine for us".

Crude Oil is higher in the Asian trading session at 59.34$ as Fed suggested that a rate hike in June is unlikely.

Gold is trading lower this morning at 1210.33 while Silver is up at 17.20

21st May 2015 – 07:58hrs GMT

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

 

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Daily Market Analysis – 22nd May, 2015
By FxGrow Research & Analysis Team

Bank of Japan leaves monetary policies unchanged

The Bank of Japan left monetary policies unchanged as its economy grew more than expected in the first quarter. Policymakers have kept the central bank's annual 80 trillion yen monetary easing programme in place after a two-day meeting.

BOJ stated that "private consumption has been resilient against the background of steady improvement in the employment and income situation. The year-on-year rate of increase in the CPI is likely to be around zero percent for the time being, due to the effects of the decline in energy prices".

In Eurozone, the negotiations between Greece, Germany and France have ended without any signs of an agreement to release the EUR 7.2billion in financial aid to Greece.

Greece’s new government is still to reach an agreement with its European creditors over its €240 billion bailout program. Rising concerns over the ability of the Greek government to repay its debts and remain in the Euro is worrying investors worldwide.

In US Existing home sales fell by 3.3% to 5.04 million while market expectations were at 5.23 million. US initial claims rose by 10k to 274,000 in the week ending May 16, 2015.

Germany’s GDP rose to 0.3% in line with the analyst expectations. According to the data the German's economy entered 2015 with a relaxed pace of expansion.
In Euro Zone Manufacturing Activity continues to recover as services sector enjoyed a healthy expansion.

ECB stated that "Overall, members agreed that emphasis needed to be placed on a steady course of monetary policy" and that the central bank's asset buying programme yielded intended results.

In news coming from Greece it says that it expects to reach a deal with its creditors within 10 days and meet all its payments in June.

NYMEX Crude is down in Asia to $60.65 as investors await US data on drilling activity.

Gold prices have bounced in Asia currently trading at 1208.96 while Silver is strong at 17.19

22nd May 2015 – 07:19hrs GMT

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.