Philip Chua Business Blog

Posts Tagged ‘level’

U.S. Dollar Trading (USD) came under pressure after the July Non Farms Payrolls fell -131k and June’s figures were revised lower by another 100k. The USD/JPY tested the key Y85 level and EUR/USD broke above 1.3300 although some riskier assets like Oil came under pressure. The July Unemployment Rate increased

Risk appetite fell on Friday, US data trumping continued decent company earnings. US equities began the decline during the European afternoon, and accelerated to -2.9% after a steep plunge in the US consumer sentiment survey to the lowest level in a year. Following the previous day's disappointments in the NY

Despite its rise for the first day in four on Friday, the dollar fell versus its counterparts except the yen for the week. An unexpected decline in US retail sales raised doubts about the US economic outlook. On the positive side, US consumer sentiment rose to the highest level since

We have fiddled around in recent days with key inflection points in risk, including the 200-day moving average in the US S&P500 and the Ichimoku cloud level in USDJPY, not to mention the 200-day moving average in risk trades like USDCAD, but today seemed to offer a rather definitive statement

The Euro's rebound following the announcement of the EU rescue package proved exceptionally short-lived. Markets immediately smelled blood and added to EUR shorts, driving EUR/USD below additional key technical levels, most notably the 1.2450/1.2500 2009 lows, which now serves as the critical daily closing resistance zone. However, the past week's decline came up short of the 2008 lows at 1.2330 and this level will act as the next trigger to further declines. In the midst of this EUR weakness, we are starting to get the feeling that Euro-bearishness is reaching extreme levels. That does not mean that the EUR won't see lower in the week ahead; in fact we anticipate further declines to the 1.2150/1.2200 area in the short-run (based on an Elliot Wave count), but from there the likelihood of a base/correction forming increases greatly.

ANYONE who thought that the 110 billion euro (S$199 billion) bailout package for Greece announced on Sunday would succeed in stabilising European bond markets would have been disappointed by its initial reception. Although yields on Greek two-year government bonds have fallen from their near-16 per cent level on April 28, they remain elevated, at more than 10 per cent. More significantly, they hav... more