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
✖

US CPI disappoints as USD falls

Article By: ,  Financial Analyst
November 21, 2014 9:52 AM

Another day and the yen is still the main talking point after a rally up to new fresh seven-year highs touching 118.96; it now has fallen back 100 points below. The move happened more on the back of weaker US CPI yesterday showing a concern for the FED after the end of QE last month.  Currently we are trading just below 118.00 and looking weak as overnight comments from Japan’s financial minister suggesting that the rapid fall in yen was a concern, so it’s taking a step back from recent rallies.

The UK Retail sales yesterday gave the pound a boost, breaking the 1.5700 level, but has struggled a few times to hold above this as the down trend keeps pressure on the rallies.  Today it looks to gain back above the level with the Public Sector net Borrowing PSNB data expected to be better for the pair at 6.9b- a drop from 11.1b. Currently trading below 1.5700.

The euro had a rangy day yesterday after starting the day on the back foot with weaker German and Euro Area PMI’s, piling the pressure on the ECB, only to turn around in the afternoon with the US CPI data disappointing.  Today’s move could come from Draghi speaking early this morning at  a European banking congress, with most of the issues already having been addressed by Draghi previously. Not sure we’ll get any more of an insight to the plans of the ECB, but a dovish tone will mostly be expected with the latest data pointing to a slowdown.  Currently trading below 1.2550.

The SNB hit the wires yesterday after the EUR/CHF reached a low of 1.2006, and said what we all know: that they are determined to defend the cap of 1.2000 and have unlimited FX reserves.  This sees a slight pop up in EUR/CHF to 1.2020 and sitting around there this morning, one to be very careful around, as by the comments of the SNB they are always watching.

 

EUR/USD

Supports 1.2500 1.2470 1.2430  | Resistance 1.2580 1.2610 1.2650

USD/JPY

Supports 117.60 117.00 116.40   | Resistance 118.90 119.50 120.15

 



GBP/USD

Supports 1.5640 1.5580 1.5530  | Resistance 1.5740 1.5790 1.5850

 

 

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