Sentiments Improved On Easing Geopolitical Tensions
ActionForex | Aug 15, 2014 05:19AM ET
Risk sentiments improved further on easing geo political tensions. Asian equities are generally higher as US stocks extended this week's rebound overnight. Reactions in the yen was muted though as treasuries yields dropped in spite of strength in equities. Russian President Putin pledged that his government would do what they can "so this conflict comes to end as soon as possible and the bloodshed in Ukraine comes to an end". In the Middle East, Israel and Hamas agreed to extend their ceasefire for a further 3 days. In Iraq, Nouri al-Maliki has agreed to step down as PM and back Haider al-Abadi to form a new government. These developments calmed investors although peace would merely last temporarily.
The Sterling remains the weakest major currency this month. Q2 GDP revision from UK will be closely watched today and is expected to show 0.8% qoq growth, unrevised. Index of services is expected to rise 1% 3mo3m in June. In other occasions, we'd talked about the bearish outlook in GBP/AUD, where price actions from 1.7735 are viewed as a consolidation pattern and the fall from 1.9185 is anticipated to resume sooner or later. Indeed, the break of near term channel support is taken as the first sign of fall resumption. Near term outlook is mildly bearish for 1.7821. Break there will affirm the bearish case and should send GBP/AUD through 1.7735 to 38.2% retracement of 1.4380 to 1.9185 at 1.7349.
In US session, a bunch of economic data will be released. From US, empire state manufacturing index is expected to drop to 2 in August. PPI is expected to slow to 1.8% yoy in July with core PPI slowed to 1.6% yoy. TIC capital flow might rise to USD 27.3b in June. Industrial production is expected to grow 0.3% in July. U of Michigan consumer sentiment is expected to rise to 8.3 in August.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.