Tightening the dollar up oil prices fall again drag on commodity currencies

By Connie Cruz,2015-05-11 17:46
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Tightening the dollar up oil prices fall again drag on commodity currencies

    Tightening the dollar up oil prices fall again drag on

    commodity currencies

    On December 17, 22:30 06:30 to December 18, currency review: take itThe United StatesEntered the tightening cycle,The dollarAgainst a basket of major currencies days hovering near a two-week high.byThe federal

    reservefurtherIncreases in interest ratesExpected a boost, the dollar index concussion uplink, days highs hit a week or two, the market think the federal reserve (FED) the move will make U.S. assets more attractive.At the same time the fed tightening, andThe European central bank (ECB)andThe bank of JapanStimulus measures, monetary policy deviation phenomenon aggravate also led to investor demand for the dollar.

    The U.S. department of labor (DOL)dataShow that by the end of December 12 week reduced from 11000 to 11000 in the number of initial claims for unemployment benefits.The United States this week please data down to five months to the lowest, and 41 consecutive weeks of less than 300000 people below the threshold, suggests that the Labour market continues to improve, or would allow the fed to continue to tighten policy over the next year.In addition, the federal reserve tightening policy helped fuel the market demand for U.S. debt, because of its yield is much higher than the European and Japanese government bonds, prompting investment inflows to the United States, thus further boost the dollar.Although the chairman of the federal reserveyellenOn Wednesday stressed the subsequent tightening pace will be gradual, but the fed officials to interest goal expected value of 1.375% in 2016, which means that will raise interest rates next year four times, each time by 25 basis points.

    The euro$/ days continued drop, hit $1.0801 a week and a half of the low.The dollar index touched a two-week high 99.294, late back slightly.Although safe-haven demand fall, the dollar /The Japanese yenPeriod hit more than 1 week high of 122.87, but the Japanese economy as a whole, provides some support for the yen.The pound/ dollar hit a low of $1.4864 about eight months.In addition, the influence of crude oil prices continue to fall, the dollar /The Canadian dollarPull up sharply today, refresh again about 11 and a half years to new highs.

    Focus, an indicator:

    Economic data

    soThe FrenchProducer price index (at an annual rate) in November

    At 21:30CanadaThe November consumer price index (annual)

    The event

    Are most of Japan's central bank governorMr KurodaWill hold a press conference/Japan's central bank monetary policy meeting, released interest rate decisions

    The main currency movements analysis:

    Open at 1.0843, the euro/dollar: the time periodcurrencyContinue downward, minimum reached 1.0801, then to rise, late consolidation at around

    1.0832.Monetary policy deviation rate keep bearish.From the technical side, MACD red kinetic energy pillar steadily shrinking, KDJ indicators below the center line to continue downward, downward momentum is still in the release.Uplink initial resistance at 1.0980, further resistance at 1.1049, a key resistance at 1.1094;Initial support rate downward in 1.0866, further support in 1.0821, a key support at 1.0752.

    Open at 1.4924, GBP/usd: the time period of exchange rate shocks down, hit a lowest 1.4864, late-day trading at around 1.4900.Below 1.4955 support shows that risk remains.From the technical side, MACD appears green column, kinetic energy index dead fork down, KDJ index downward deeply oversold situation, suggests that exchange rate could fall further.Initial resistance rate upward in 1.5073, further resistance at 1.5144, a key resistance at 1.5199;Initial support rate downward in 1.4947, further support in 1.4892, a key support at 1.4821.

    Dollar/yen: open at 122.68, the time period of the highest reached 122.87, then all the way down to 122.42, eventually trading at around 122.50.Breakthrough after resistance near 122.25 overall trend towards bullish.From the technical, the kinetic energy of the MACD green column continue to shrink, KDJ indicators point to the center line above, shows that were stable upward trend.Preliminary resistance rate upward in 122.59, further resistance at 122.98, a key resistance at 123.56;Initial support rate downward in 121.62, further support in 121.04, a key support at 120.65.

    Open at 1.3871 usd/cad: this time, period soared to 1.3985, brush again eleven and a half years to new highs, eventually trading at around 1.3940.Slump in oil prices on the global risk assets and goods currency impact, while the Canadian first.From the technical side, MACD red kinetic energy column to expand again, KDJ indicators turn head up high, show a recent strong momentum.Preliminary resistance rate upward in 1.3842, further resistance at 1.3906, a key resistance at 1.3964;Initial support rate downward in 1.3720, further support in 1.3662, a key support at 1.3598.

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