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| Action Insight | Candlesticks Trades | Markets Summary | Action Bias | Top Movers | Daily Technicals |
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| Action Insight Weekly Report | Markets Snapshot |
Euro Extended Correction, Yen to be Back Under Pressure on BoJThere was no unified theme in the markets last week. The Japanese yen was the weakest currency in the early part of the week on speculation of imminent BoJ easing. But yen then rebounded strongly as disappointing corporate earnings triggered selloffs in equities. Mean Kiwi, Aussie and Sterling were boosted by different factors in spite of risk aversion. Buying of these three currencies in crosses kept Euro pressured against dollar. Canadian dollar, on the hand, weakened after flip-flopping for a while. Looking ahead, we'd expect the yen to be back under pressure as BoJ announce approaches. Also, employment data as well as ISM from US will probably rock the risk markets too and trigger volatility in FX. |
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| Featured Technical Report | |
EUR/USD Weekly OutlookEUR/USD spiralled lower last week as consolidation from 1.3171 continued. Fall from 1.3138 is the third leg and could extend to 1.2825 and below. But still downside should be contained by 50% retracement of 1.2255 to 1.3171 at 1.2713 to conclude the consolidation and bring rebound. On the upside, sustained break of 1.3171 will confirm that rise from 1.2042 has finally resumed and should target 1.3486 key resistance, which is close to 50% retracement of 1.4939 to 1.2042 at 1.3491. |
| Special Reports | ||
RBNZ Leaves OCR At 2.5%, Sounds More Upbeat On Economic OutlookAt the first meeting in his capacity as the RBNZ governor, Graeme Wheeler left the OCR unchanged at 2.5%. He, however, sounded more upbeat on the economic outlook. He believed that 'market sentiment has improved from earlier in the year, suggesting the risks to the global outlook are more balanced'. New Zealand soared after the meeting. FED Maintains Status Quo, Upgrades Economic Assessments ModestlyAs expected, the October FOMC meeting contained few surprises. Policymakers decided to keep the fed fund rates and the QE3 program unchanged. Some positive comments were made regarding economic developments though. For instance, the committee upgraded its assessment of household spending to 'has advanced a bit more quickly' in October from 'continued to advance' in its September statement. Moreover, Richmond Fed President Lacker seemed to have changed his stance modestly. We expect the Fed to expand the size of asset purchases by US$45B in December so as to maintain a constant pace of buying after completion of Operation Twist. BOC Left Policy Rate Unchanged, Kept Rate Hike RhetoricThe Bank of Canada left its benchmark overnight rate target unchanged at 1% in October. Policymakers retained the view that "some modest withdrawal of monetary policy stimulus will likely be required". The central bank also raised its GDP forecast for this year while maintaining and reducing the outlooks for 2013 and 2014 respectively | ||
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The Week in Review and Outlook | ||
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