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Market Outlook by Capital Street FX

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Re: Market Outlook by Capital Street FX

Postby CSFX.Support » Fri Oct 28, 2016 4:42 pm

EUR/CHF signal by Capital Street FX

From GMT 17:10 28/10/2016
Till GMT 21:00 28/10/2016

Buy at 1.08600
Take profit at 1.08700
Stop loss at 1.08500
Benefit from 0 Pips Spreads, 200% Bonus, 1:1000 Leverage, 100% Risk Free
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Re: Market Outlook by Capital Street FX

Postby CSFX.Support » Fri Oct 28, 2016 4:52 pm

Drug Maker Sanofi Boosts CAC 40 Higher After Early Losses

French shares swung to positive territory after easing losses in early trade on Friday. France’s CAC 40 index rose 0.22% so far on the day following the release of encouraging Eurozone economic confidence data.

Among a batch of economic releases on Friday, survey data from the European Commission showed that a gauge of Eurozone economic confidence hit a 10-month high at 106.3 in October, which is up from 104.9 in the prior month. However, French consumer spending unexpectedly shed 0.2% in September following a 0.8% increase in August, data from statistical office INSEE revealed.

Also stated by the INSEE, the annual consumer price inflation remained stable at 0.4 percent in the current month, while producer prices added 0.1% on a monthly basis in September, after remaining flat in the previous month.

On the CAC 40 index, declining issues outnumbered advancing issues by 22 to 18. Nonetheless, the index was trading in the green, led by the jump of drug maker Sanofi. Shares of the pharmaceutical company rallied more than 7.0% it raised its profit forecast for the year and announced its plan to complete a €3.5 billion ($3.82 billion) share buyback by the end of 2017.

Compagnie de Saint Gobain SA’s equities also climbed 3% after the building materials firm posted good organic growth in the first five nine months of the year.

On the other side, Nokia Corp topped the list of losers, heading down more than 4%. The technology company reported a quarterly net loss for the third time in a row on Thursday. The decline in the bottom line was resulted from sluggish mobile-network sales and charges related to the company’s acquisition of French rival Alcatel-Lucent SA.

Adding to Nokia’s woes is the news that its Chief Financial Officer Timo Ihamuotila has resigned to join technology conglomerate ABB Ltd. in Switzerland. His position will be filled by Kristian Pullola.

CAC 40 index has been on a rise and is likely to approach the six-month highs at 4579.90 logged on October 24th. The index is being suported by two MAs which are moving under the price action. With the confirmation from the RSI index that is heading upwards to the overbought zone, the index is expected the uptrend.

Trade suggestion

Buy Stop at 4545.00 , take profit at 4557.00, stop loss at 4540.00

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Re: Market Outlook by Capital Street FX

Postby CSFX.Support » Mon Oct 31, 2016 12:51 pm

China Imports Less, Brazil Exports More – Sugar Tumbles

Sugar prices plunged for the fifth consecutive days on Monday as governments in China and Egypt are selling sugar out of their stocks to support domestic supply. Meanwhile, a strengthening Brazilian real has been encouraging Brazilian sugar producers to increase exports.

Due to domestically output declines in sugar plantations, which has happened to most sugar producing nations owing to drought brought by the El Nino weather pattern earlier this year, China had to gear up importing sugar from its neighboring countries such as Myanmar and Thailand. However, in the past few months, Chinese authorities have tightened controls over imports of agricultural products from Myanmar including sugar in order to fight with illegal cross-border trade.

The U.S. Department of Agriculture’s Beijing bureau recently trimmed its forecast for Chinese sugar imports in 2016-17 to 6 million tons, which is 1.9 million below the initial estimate.

To solve its own sugar supply issue, Chinese government has sold sugar from the state reserves. According to market sources, China’s fourth-quarter imports of raw sugar is expected to be under 350,000 metric tons, compared with 700,000 tons during the same quarter in 2015

Similarly, Egyptian authorities are pumping large amounts of sugar, both subsidized and free, into the market in a bid to control prices. Egypt has been facing a sugar scarcity due to an acute dollar shortage, which has cut imports and left the market short.

On Sunday, Egypt’s Supply Ministry raised its provision of sugar from 4,000 tons to 9,000 tons per day to secure the essential commodity, and said that the crisis is almost over. Egyptian authorities have so far seized 9,000 tons of sugar in raids on factories and warehouses, and forced temporary shutdowns on PepsiCo and Edita’s facilities. The sugar will be resold to the public at subsidized prices.

Adding to sugar’s woes, a decline in the value of the real versus the US dollar also contributed to selling. The Brazilian real has pulled back against the dollar since last Thursday. A weaker local currency makes dollar-denominated commodities more valuable. Therefore, Brazilian exporters have been increasing sales, which directly increases global supplies and pressures prices.


Sugar has broken out of the trading range, within which the commodity had been locked for more than a month. Sugar breached below the handle of 22.35 and is facing a dynamic support which is the long-term DMA50. The down side is being supported with RSI pointing downwards and wide gap between the +DI and –DI lines in the ADX chart.

Trade suggestion

Sell Stop at 22.00, Take profit at 21.20, Stop loss at 22.40

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Re: Market Outlook by Capital Street FX

Postby CSFX.Support » Mon Oct 31, 2016 9:00 pm

SP500 Inches Higher Following Economic Data – Long Position Suggested

U.S. SP500 index traded higher on Monday as better-than-expected inflation and consumer spending data outweighed bearish sentiment clouding on energy stocks.

According to the U.S Bureau of Economic Analysis, inflation as measured by the PCE index rose 0.2% in September. Meanwhile, a separate report also by the Bureau of Economic Analysis showed Americans increased spending in September by the fastest amount in three months.

The S&P 500 added 0.23%, with eight of the 11 main sectors trading higher. Utilities and Real Estate led the gains while crude oil prices which tumbled on Monday put pressure on energy companies.

Trade suggestion

Buy Stop at 2130.00, Take profit at 2135.00, Stop loss at 2125.00

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Re: Market Outlook by Capital Street FX

Postby CSFX.Support » Tue Nov 01, 2016 8:36 pm

Pfizer’s Profit Misses Projections, 2016 EPS Outlooks Cut

Shares of Pfizer Inc were down in premarket trading, as the largest U.S. drugmaker surprised investors by announcing that it is ending development of a cholesterol-lowering treatment, which had been expected to be a blockbuster. The pharmaceutical corporation also reported third-quarter earnings that missed analysts’ forecasts.

Pfizer earned 61 cents per share in three months to September, falling short of average analyst estimate by 1 cent. The New York-based drugmaker shaved 4 cents off its 2016 earnings forecast as a result of the discontinuation of its cholesterol treatment program.

The company lowered the upper end of its 2016 adjusted earnings forecast by 5 cents to $2.43 from $2.48 per share, while reaffirming the lower end at $2.38. Pfizer also expects revenue in the range from $52 billion to $53 billion, bumping up the low end of the revenue forecast by $1 billion.

Trade suggestion

Sell Limit at 31.50, Take profit at 31.00, Stop loss at 32.00

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Re: Market Outlook by Capital Street FX

Postby CSFX.Support » Tue Nov 01, 2016 8:52 pm

Concerns Over Fed Meeting and Presidential Election Drag on USDJPY

Japanese Yen reclaimed lost ground against the U.S dollar, sending the pair USDJPY to the lowest since last Wednesday at 104.225. The USD wobbled notably amid news that presidential polls have tightened significantly in recent days and ahead of a series of economic data and important events coming in the next two weeks.

The Yen weakened slightly after the Bank of Japan left its monetary policy unchanged while pushing back the timing for hitting its inflation target again on Tuesday. The BOJ Governor Haruhiko and his colleagues maintained targets for controlling short-term and long-term rates as well as asset-purchase programs, but shifted the projected timing for reaching its inflation target of 2 percent to “around fiscal 2018”.

The central bank stated that it would continue buying Japanese government bonds at an annual pace of about 80 trillion yen ($764 billion), and made no changes to its previous plans for purchases of other assets, such as exchange-traded funds.

The Yen rebounded as the greenback weakened across the board. The U.S dollar failed to benefit from higher-than-expected manufacturing data that supported the case of the Federal Reserve to increase interest rates at its December meeting.

The Institute for Supply Management reported its manufacturing index rose to 51.9% in October, the highest in three months. The reading was slightly ahead of 51.7% forecast by economists. A similar survey of industry executives produced by IHS Markit also pointed to an improvement in manufacturing activities last month. The Markit index hit a one-year high at 53.4.

However, the U.S construction spending released by the Commerce Department unexpectedly declined 0.4% in September, as spending on private nonresidential structures recorded the biggest decline in nine months.

Topping to mixed data that could not power the greenback’s strength, recent polls showing the tightening presidential race between Republican nominee Donald Trump and Democratic rival Hillary Clinton also weighed on the U.S dollar. Enthusiasm for the Democratic candidate has warned since FBI Director James Comey on Friday said the bureau would reopen the investigation into Clinton’s misuse of a private email server.

The U.S Federal Reserve will announce its rate decision on Wednesday, and is expected to leave rates unchanged ahead of the presidential election next week.

USDJPY has retreated below the 23.6% Fibonacci retracement at 104.750 after moving sideways above this level for two days. The price action has crossed over both two moving averages and brought market back into the bearish territory. As can be observed from indicator windows, RSI index has confirmed the downtrend by dropping below the 50 line – which devides the bullish zone from the bearish area.

Trade suggestion

Sell Stop at 104.250, Take profit at 103.160, Stop loss at 104.600
Benefit from 0 Pips Spreads, 200% Bonus, 1:1000 Leverage, 100% Risk Free
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Re: Market Outlook by Capital Street FX

Postby CSFX.Support » Wed Nov 02, 2016 12:39 pm

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Daily Report on November 2, 2016

Asian shares tumbled on Wednesday, following U.S equities’ footsteps amid polls indicating a closing gap between Republican U.S. presidential candidate Donald Trump and his Democratic rival Hillary Clinton on the race to the White House. Some recent polls even showed Trump ahead with 46 percent support compared to Democrat Hillary Clinton’s 45 percent. This is the first time since May that the Republican nominee has taken the lead, which resulted from a lack of enthusiasm among Clinton supporters.

Against the background of share selloff, safe-haven assets rallied. The yen rose for a second day, while the Swiss franc and gold were approaching their highest levels in almost a month. The greenback, which is typically considered as one of the safe havens, slumped today. The U.S dollar fell to a three-week low against the euro and lost ground versus the yen overnight ahead of the Federal Reserve’s rate decision which will be announced later on Wednesday.

New Zealand dollar reached two-week highs in the wake of tightening labor market. In a report released earlier today, Statistics New Zealand said that the country’s unemployment rate unexpectedly fell to a seasonally adjusted 4.9% in three months to September, from 5.1% in the preceding quarter. Meanwhile, employment grew 6.1% on a yearly basis and 1.4% quarter-on-quarter with an increasing labor force participation.

Crude oil prices fell for a fourth day on Wednesday following industry data showed a surprise build in inventories. The American Petroleum Institute (API) on Tuesday reported crude stockpiles increased by 9.3 million barrels in the week to Oct. 28, more than nine times the amount expected by analysts polled by Reuters.



Technicals

GBPUSD



Fig: GBPUSD H4 Technical Chart

GBPUSD has been trading sideways since the start of this week after a short rally from the low at 1.21426. The pair is on track to hit the upper boundary at 1.23300. While the short-term MA20 has converged with the long-term MA50 from below, the RSI index is moving in the bullish zone, supporting potential upbeat moves.

Trade suggestion

Buy Stop at 1.22500, Take profit at 1.23300, Stop loss at 1.22100



CADJPY



Fig: CADJPY H4 Technical Chart

CADJPY has broken through two major Fibonacci levels at 38.2% and 50.0% and is heading downwards towards the 61.8%. The pair failed to bounce back from the 50.0% level at 77.519 and is forecast to fall deeper as signal for a continual downtrend has come from two MAs which have just converged. A low-level RSI and a soaring ADX consolidate the uptrend.

Trade suggestion

Sell Stop at 77.400, Take profit at 77.020, Stop loss at 77.600



EURCAD



Fig: EURCAD H4 Technical Chart

After a correction on Monday that brought the pair near the 23.6% retracement, EURCAD has surged strongly. However, as the 38.2% level is within the sight, the rally seems limited. Furthermore, RSI index has penetrated the overbought market while +DI is heading down, suggesting potential reversal. Hence, 38.2% level can be aimed as near-term target.

Trade suggestion

Buy Stop at 1.48300, Take profit at 1.48800, Stop loss at 1.47900



GOLD



Fig: GOLD H4 Technical Chart

Gold has been on a strong rally since it bound back from the 38.2% Fibonacci retracement. The precious metal is approaching another important Fibonacci level at 23.6% which is at 1297.68. Gold’s bullish sentiment has been fueled by two MAs placed below the price action. However, as market has entered the overbought zone and buyers seem to get week (as indicated by the ADX chart), the yellow metal may move sideways or pull back from the 23.6% handle unless it gets a boost from the fundamental side.

Trade suggestion

Buy Stop at 1292.50, Take profit at 1297.68, Stop loss at 1287.00



WTI



Fig: WTI D1 Technical Chart

U.S. WTI is about to hit the 23.6% retracement at 46.00 which is also the lowest level since September 28th. A strong plunge has sent the commodity to trade below both the DMA20 and DMA50 and brought the market into the bearish territory. Crude investors are waiting for U.S official stocks data due later today. A larger-than-expected increase in U.S stockpiles may damp the commodity price to as low as 44.50.

Trade suggestion

Sell Stop at 46.00, Take profit at 44.50, Stop loss at 46.80



NASDAQ 100



Fig: NASDAQ 100 H4 Technical Chart

The U.S. NASDAQ 100 index fell to as low as 4723.63 yesterday. The index simultaneously breached the support at 4700.00 before pulling back from the lowest level since mid-September. However, the price failed to get back above the 4700.00 handle and may create a gap down following the selloff of global stock market. The support at 23.6% level is within the sight.

Trade suggestion

Sell Stop at 4745.00, Take profit at 4660.00, Stop loss at 4775.00
Benefit from 0 Pips Spreads, 200% Bonus, 1:1000 Leverage, 100% Risk Free
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Re: Market Outlook by Capital Street FX

Postby CSFX.Support » Wed Nov 02, 2016 1:02 pm

Copper Retreats From Two-month Highs, Time To Buy The Dips

Copper has fallen for the first time on Wednesday following a seven-day winning streak. The metal hit two-month highs on Tuesday as it was given fresh support from Chinese economic data which indicated robust demand for industrial metals.

Today’s fall is believed to be a correction after hefty gains as investors took profit. Manufacturing activities in China, the world’s biggest consumer of copper, were reported to expand at the fastest pace in more than two years in October. According to figures released on Tuesday, the PMI stood at 51.2 in October, much stronger than September and the highest reading since July 2014.

An expansion in Chinese manufacturing sector is expected to keep fueling demand for the copper.

Trade suggestion

Buy Stop at 2.2110, Take profit at 2.2300, Stop loss at 2.2000
Benefit from 0 Pips Spreads, 200% Bonus, 1:1000 Leverage, 100% Risk Free
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Re: Market Outlook by Capital Street FX

Postby CSFX.Support » Wed Nov 02, 2016 1:09 pm

BRENT/USD signal by Capital Street FX

From GMT 09:15 1/11/2016
Till GMT 21:00 2/11/2016

Sell at 47.50
Take profit at 46.40
Stop loss at 48.00
Benefit from 0 Pips Spreads, 200% Bonus, 1:1000 Leverage, 100% Risk Free
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Re: Market Outlook by Capital Street FX

Postby CSFX.Support » Thu Nov 03, 2016 12:26 pm

Image
Daily Report on November 3, 2016

Global stocks’ selloff deepened on Thursday as a tightening race for the U.S. presidency triggered uncertainties about the outcome of Nov. 8 vote, which prompted investors to flock into traditional havens such as Japanese Yen, Swiss Franc and gold. U.S. equity index futures joined the U.S dollar and the Mexican peso on the defensive after Fox News reported that a FBI probe related to Democratic nominee Hillary Clinton’s misuse of private e-mail was intensifying.

Federal Reserve’s rate decision on Wednesday hit the market little since the central bank decided to stand pat on its monetary policy as markets expected. Fed kept the option open for a hike by year-end, stating in its statement that it needs “some” further evidence of improving inflation and employment before raising interest rates.

The British Pound is on the verge of wide fluctuation today as investors are waiting for data release on the country’s service PMI and the Bank of England’s monetary policy announcement which comes with the U.K’s quarterly Inflation Report. Markets expect no changes made to the BOE’s key rates and will focus on the bank’s economic forecasts, particularly expectations for inflation.

But before that, the Cable may vacillate strongly as three senior judges in London will publish their decision on whether the Parliament can play a role in the process of triggering Article 50. If Prime Minister Theresa May cannot begin Britain’s exit from the European Union without permission from Parliament, the process could be delayed by more than a year.



Technicals

EURGBP



Fig: EURGBP H4 Technical Chart

EURGBP has been trapped in a trading range for almost a month. The pair has slid since it nearly hit the upper boundary at 0.90555. The price action has crossed over two MAs, consolidating the downtrend. RSI that surpassed the 50 line also supports the down moves. The pair may fall as low as 0.88800 – which is the lower boundary.

Trade suggestion

Sell Stop at 0.89500, Stop loss at 0.89800, Take profit at 0.88800



NZDUSD



Fig: NZDUSD H4 Technical Chart

NZDUSD has been struggling around the one-month highs at 0.73000 after a strong rally from the 23.6% Fibonacci level. Bulls have lost their steam which sent the prices to move sideways. The upside seems limited as the market has been overblown while the major level at 0.73600 is within the sight.

Trade suggestion

Sell limit at 0.73600, Stop loss at 0.73800, Take profit at 0.73000



EURNZD



Fig: EURNZD H4 Technical Chart

As can be seen from the chart, EURNZD entered a short correction after falling to as low as 1.51692. However, a few up moves failed to help the pair breach the 23.6% level at 1.52546. The pair pulled back at this handle and is heading towards the 0.0% Fibonacci retracement. With RSI indicating a market in favor of bears, the pair is anticipated to fall deeper.

Trade suggestion

Sell Stop at 1.51800, Stop loss at 1.52650, Take profit at 1.51300



SILVER



Fig: SILVER H4 Technical Chart

Silver fell back below the 38.2% level after breaking above this handle on Tuesday. The metal hit one-month high at 18.716 before giving up its bullish strength and reversing lower. Silver is struggling with the short-term MA20 when the market has not entered the bearish zone yet, which is pointed out by the RSI. Therefore, there a chance that silver may bounce back after the current correction.

Trade suggestion

Buy Stop at 18.300, Stop loss at 17.950, Take profit at 18.700



Sugar



Fig: SUGAR H4 Technical Chart

Sugar resumed its downtrend after a correction from the low of 21.10. Buyers jumped in as a long streak of declines had brought the market into the oversold zone and opened the chance for buying the dips. However, with downward pressure from two MAs hanging above the chart, sugar is expected to extend its slide.

Trade suggestion

Sell Stop at 21.50, Stop loss at 21.80, Take profit at 21.10



CAC 40



Fig: CAC 40 H4 Technical Chart

France’s CAC 40 has broken through the 23.6% Fibonacci retracement from below after falling for four days in a row to as low as 4397.00. The index pulled back from the overbought zone and is heading upwards to test the resistance at 4495.00. As the %K line is taking the lead, CAC 40 is expected to surge higher.

Trade suggestion

Buy Stop at 4452.60, Stop loss at 4457.30, Take profit at 4495.00
Benefit from 0 Pips Spreads, 200% Bonus, 1:1000 Leverage, 100% Risk Free
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CSFX.Support
 
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