CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Risk off as uncertainty dominates

Article By: ,  Financial Analyst
February 9, 2015 11:30 AM

The FX market has started the week with a risk-off tone despite Friday’s solid US jobs report. January’s non-farm payrolls increased by a larger-than-expected +257k against a forecast of 228k and revisions for November and December added a further 147k. The good news didn’t stop there as the participation increased by two tenths to 62.9% whilst average hourly earnings recovered from a 0.2% decline in December to a lofty 0.5% increase, taking the yearly average to 2.2%.

The risk-off tone in the Asian session was fuelled by disappointing trade data from China and further tough talk from Greece on its attempts to renegotiate the terms of its bailout with the EU and IMF. The China Q4 trade surplus widened to $60.3 billion versus a forecast of $48.9 billion as imports fell 19.9% while exports also declined 3.3%. This has resulted in economists calling for further policy easing from the PBOC with this latest data blip highlighting the deteriorating domestic picture. Greek Prime Minister Alexis Tsipras hardened his stance in recent days and plans to roll back austerity whilst rejecting an international bailout extension. He continued to reiterate that Greece will be unable to service its debt and would instead seek a bridge loan. The former Federal Reserve Chairman Alan Greenspan commented on Sunday that a Greek exit from the Euro was ‘inevitable’.

The data calendar is sparse today as this week’s highlight consists of the BoE’s quarterly inflation report on Thursday, with US retail sales following on the same day. On Friday, Europe focuses on Q4 GDP data.

IMM positioning data reveals US dollar longs have increased by $1.7 billion to $47.8 billion and just below the one-year high of $49.4 billion as EURO, Australian dollar and Canadian dollar short positioning increased.

 

 

EUR/USD
Supports  1.1260-1.1105-1.1000  | Resistance 1.1405-1.1530-1.1680

 

 

USD/JPY
Supports  118.30-117.25-116.80 | Resistance 119.35-120.85-122.00

 

 

GBP/USD
Supports 1.5220-1.5180-1.5105 | Resistance 1.5330-1.5388-1.5450

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024