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USD/JPY Intermarket: Funding the rally in Dow Jones Omkar Godbole

Global markets were rocked by Brexit vote on June 24. The result was a drop in the USD/JPY pair to a low of 97.79 levels on June 24. Dow index also printed a low of 17,063 on June 27.World didn’t come to an end after Brexit, but…Contrary to the argument put forward by pro-EU camp before the referendum, the world did ...

07:23 26 July /2016 Forex

Dollar longs added, Yen longs pared ahead of FOMC and BoJ – Deutsche Bank Sandeep Kanihama

Research Team at Deutsche Bank, notes that investors further added to their long dollar exposure in the past week ahead of the FOMC meeting and amid improving global risk sentiment.Key Quotes“Implied USD longs as a fraction of open interest rose to 12.2% from 10.7% previously. At the same time long positioning in JPY was pared meaningfully given expectations of fresh BoJ easing th...

07:23 26 July /2016 Forex

NZ Trade: Good under the hood – ANZ Sandeep Kanihama

Philip Borkin, Senior Economist at ANZ, suggests that at $127 million, the NZ’s headline (unadjusted) monthly trade surplus was close to expectations in June (mkt: $150m).Key Quotes“Both export and import values were also close to expectations. In seasonally adjusted terms, a $78m deficit was recorded, which continues to narrow after a $474m deficit recorded in March. Over the Jun...

07:23 26 July /2016 Forex

Oil breaks down further – BBH Sandeep Kanihama

Research Team at BBH, suggests that yesterday’s 2.5% fall in the September light sweet crude oil futures contract extends the decline that began on June 9 and is the third consecutive loss and the fifth loss in the past six sessions. Key Quotes“There are two important points to make. First, the contract has fallen through a trend line drawn off the January, Februa...

07:23 26 July /2016 Forex

AUD/USD: Recovery capped below 0.7500, risk-off weighs

The AUD/USD pair is seen having failed several attempts to reclaim 0.75 barrier, now consolidating the overnight recovery in the upper band of 0.74 handle.AUD/USD struggles to regain 0.7500Currently, the AUD/USD pair trades +0.19% higher at 0.7485, having found strong support between ...

07:00 26 July /2016 Forex

Japan EconMin Ishihara: Growth will not improve unless structural reform implemented

Japanese economy minister Ishihara is now crossing the wires via Reuters, noting that, “Growth will not improve unless structural reform is implemented; important to take steps on fiscal reform.”

06:46 26 July /2016 Forex

Oil – slightly above 3-month lows, Eyes API data Omkar Godbole

Oil prices at both the sides of the Atlantic recovered from three-month lows in what appears to be a chart driven move as overall mood remains bearish following the sharp drop on Monday.At the time of writing, Brent oil was up 0.38% or 17 cents at $45.30/barrel, while WTI was up 0.26% or 11 cents at $43.24/barrel. Brent prices hit lowest level since May on Monday and WTI hit lowest level since Apr...

06:46 26 July /2016 Forex

Japan stimulus decision expected next week – Bloomberg

Bloomberg is reporting that a decision on the size and content of the much anticipated fiscal stimulus in Japan is expected next week.The Nikkei newspaper reported today that the plan is likely to include JPY 6 trillion of news spending, although only about JPY 2 trillion of that would be in a supplementary budget to be passed this year,According to Kyodo news, the cabinet is likely to make the fi...

06:23 26 July /2016 Forex

China Press: There is room and expectation of reserve deposit ratio and benchmark interest rate cut from PBOC

An official from Securities Daily noted in an opinion article that there is room and expectation of a cut in the reserve deposit ratio and the benchmark interest rate from the People's Bank of China (PBOC).The article further stated, “One of the basic tasks for the central bank is to maintain reasonably ample liquidity, and provide an appropriate monetary environment for the stabi...

06:23 26 July /2016 Forex

USD/JPY off-weekly lows, but stays below 105.00 Dhwani Mehta

Having faced rejection at 105 handle, the USD/JPY pair dropped sharply to hit fresh weekly lows near 104.60 region, before recovering some ground on bearish Japanese government growth forecasts.USD/JPY re-attempts 105?The tepid-recovery in the dollar-yen pair lost legs at 50-DMA or 105 handle, knocki...

06:23 26 July /2016 Forex

Gold – rejected at 5-DMA, surrenders gains

Gold prices failed to hold above 5-DMA level of $1320.74 and fell back to today’s starting point, although the move lacks any clear catalyst other than heightened Dec Fed rate hike expectations.Caution ahead of Fed rate decisionFed rate decision is due tomorrow and markets have turned cautious on fears recent bat...

06:00 26 July /2016 Forex

Japan PM Abe: Govt won't hit fiscal reconstruction target by FY2024 if current growth pace continues Dhwani Mehta

Japanese PM Shinzo Abe was out on the wires via Reuters, noting that “Govt are to keep FY 2020 fiscal reconstruction target, however won't hit target by FY2024 if current growth pace continues.”Meanwhile, USD/JPY remains deep in the red around 104.75 levels, recording a -0.98% loss on the day.

06:00 26 July /2016 Forex

Nikkei 225 drives Asian markets decline as Yen firms up Dhwani Mehta

The Asian stocks markets extended the weakness into a second day this Tuesday, largely weighed down by heavy selling seen in the Japanese stocks amid yen’s relative strength, following potential Japanese stimulus disappointment. A local media report indicated the government's highly anticipated stimulus package may not live up to expectations.Rest of Asia outside China also bore the brunt of the N...

06:00 26 July /2016 Forex

NZD/USD – back above 50% Fibo, nears 50-DMA

NZD/USD pair shrugged off weak New Zealand data and moved back above 0.70 (50% of 0.6775-0.7325) levels. The spot now appears on track to test 50-DMA level of 0.7014 levels.Turns higher from 0.6984Kiwi dropped to a low of 0.6984 levels in early trade after the data in New Zealand showed a drop in the trade surplus. The dro...

05:46 26 July /2016 Forex

Japan forecasts baseline scenario assumes less than 1% real growth

Forecasts prepared by the Cabinet Office and submitted to the government’s economic and fiscal policy council who ‘baseline’ scenario which assumes real GDP growth of less than 1% and nominal GDP growth of around 1.5% in the medium to long-term.Key pointsPrimary balance deficit will be JPY 9.2 trillion, or 1.7% of nominal GDP in FY2020Primary balance deficit will be JPY 11 trillio...

05:46 26 July /2016 Forex

High street UK banks pave way for introduction of negative interest rates Dhwani Mehta

Headlines crossed the wires earlier on the day that a couple of high street banks in the UK are now warning of imposing negative rates to their customers.Royal Bank of Scotland (RBS) letter to customers:"Global interest rates remain at very low levels... this could result in us charging interest on credit balances""We will consider any necessary action in the even...

05:46 26 July /2016 Forex

GBP/USD – fades drop to sub 1.31 levels Omkar Godbole

GBP/USD pair is showing uncanny resilience to bearish news in early Asia, holding above 1.31 levels after quickly recovering from a drop to 1.3082 levels.Commercial banks preparing for BOE rate cutAs per Sky news report, RBS group which includes NatWest has warned customers that may be charged for keeping money in a...

05:23 26 July /2016 Forex

EUR/USD: Bulls look to conquer 1.1000 amid risk-off? Dhwani Mehta

The bears continue to guard the 1.10 barrier as we head towards the mid-Asian trades, keeping EUR/USD under pressure, despite persistent broad based US dollar weakness and risk-off sentiment.EUR/USD eyes 1.1000 Currently, EUR/USD trades -0.05% lower at 1.0990, retreating slightly from session lows re...

05:23 26 July /2016 Forex

USD/JPY: Recovers to 105.00 as Nikkei moves-off lows

The bears loosened grip somewhat post-China open, allowing a minor-recovery in the USD/JPY pair back towards 50-DMA located at 105 handle.USD/JPY: Yen bulls take a breatherThe bid tone behind the Japanese currency weakened a bit as we move towards mid-Asia, lifting USD/JPY from fresh weekly lows stru...

05:00 26 July /2016 Forex

Gold follows treasuries and Yen higher Omkar Godbole

Gold prices followed other traditional safe haven assets – treasuries and Yen - higher in Asia amid losses in Asian equities and due to caution ahead of Wednesday’s Fed rate decision and Friday’s Bank of Japan rate decision.Stuck at 5-DMAMetal recovered from the Asian session low of $1314.18, but is having a toug...

04:46 26 July /2016 Forex