FXStreet reports that the Macro Strategists at Deutsche Bank offer a brief preview of the US Federal Reserve (Fed) monetary policy decision due to be announced on Wednesday.
"As for the FOMC on Wednesday, our US economists write in their preview that the FOMC should hold rates steady, and that "the current stance is likely to be unchanged barring a "material reassessment to the outlook."
However, they do foresee a 5bp upward technical adjustment to the interest rate on excess reserves (IOER), though they write that "it is a close call given the communication challenges of such a move."
All eyes will be on Chair Powell's press conference following the meeting for any new information. The full-day by day week ahead is at the end."
According to the report from UK Finance, gross mortgage lending across the residential market in December 2019 was £22.2 billion, bringing the annual total for 2019 to £265.8 billion. Although annually 1.1 per cent lower than in 2018, the last two years have broadly reflected the continuation of a stronger long term lending trend over recent years.
An annual total of 982,286 mortgages were approved by the main high street banks during 2019, 7.4 per cent more than in 2018. The full year number of mortgages approved for home purchases were 8.0 per cent higher, remortgage approvals were 7.9 per cent higher and approvals for other secured borrowing were 3.0 per cent higher than in 2018.
Credit card spending of £11.8 billion in December 2019 was 7.3 per cent higher than in December 2018. Repayments continue to offset spending, so that the level of borrowing on cards is currently growing at only 2.4 per cent annually, continuing the general slowdown from the recent high of 6.6 per cent in October 2016.
Personal borrowing through loans in December 2019 was 14.0 per cent higher than in December 2018, reflecting the exceptionally weak demand a year earlier. Overdraft borrowing has been declining over recent years, such that December's level was 0.8 per cent lower than at the same time a year earlier.
Personal deposits grew by 2.5 per cent in the year to December 2019. Three-quarters of deposits were held in immediate access accounts in December 2019, in line with the same period last year.
Ifo Institute for Economic Research said that German business morale deteriorated unexpectedly in January as the outlook darkened.
Business climate index fell to 95.9 after 96.3 in December. Economists had expected an increase to 97.0. This monthly indicator published by the IFO economic institute based in Frankfurt defines - via a survey of 7,000 entrepreneurs - the level of confidence in the German economy. This index has a great influence on the Euro currency because it highlights the German economic dynamism and investment levels for the next 6 months.
IFO also said that current economic assessment fell to 99.7 points compared to last month's 98.8 and 99.2 anticipated. Expectations Index - indicating firms' projections for the next six months - came in at 92.9, down from previous month's 93.8 and missed expectations (95.0)
CNBC reports that U.S. government debt prices were higher Monday, with investors increasingly concerned about the economic impact of the fast-spreading coronavirus
The benchmark 10-year Treasury note, which moves inversely to price, was lower at around 1.6530%, while the yield on the 30-year Treasury bond was also lower at around 2.106%.
Chinese officials confirmed Sunday that there had been more than 2,700 confirmed cases of the deadly pneumonia-like virus, including 461 people in a critical condition as the death toll rose to 80.
The virus, which started in the Chinese city of Wuhan, comes from a large family of coronaviruses, according to the World Health Organization (WHO). The WHO has said that while the virus - which is spreading via human-to-human contact - is "an emergency in China," it has not yet become a global health emergency.
FXStreet reports that in opinion of Karen Jones, Team Head FICC Technical Analysis at Commerzbank, the European cross remains under pressure and further downside could re-visit the 0.8240 region.
"EUR/GBP has held the initial test of the 61.8% retracement at .8380. The market remains under pressure having recently failed at the .8610 resistance. The failure of the .8453 support last week suggests that it is capable of retesting the .8239 December low. This together with the 55 quarter moving average at .8226 represents key support. The intraday Elliott wave count is negative, but we would allow for a small rally to .8490."
"Below .8226 remain the June and October 2012 highs as well as the April 2016 high and the January and February 2014 lows at .8167/18."
London has lost its position as the world's main financial center to new York in part to uncertainty over Brexit, according to a survey by consultants Duff & Phelps published on Monday.
A survey of 245 senior officials from asset management, banking and other financial companies from around the world found that 56% of respondents consider new York the most important money center in the world, an increase of 33 percentage points over the past two years. Only 33% now consider London to be the world's top financial center, down more than 20 percentage points over the past two years.
The survey showed that both new York and London will lose ground in the next five years, while new centers in Hong Kong, Singapore and Shanghai are expected to see the largest growth.
The survey showed that only 22% predict that in five years, London will remain the largest financial center. Few respondents see Paris, Frankfurt, or any other European city coming close to replacing new York or London.
FXStreet reports that according to analysts at Danske Bank, markets will continue to pay close attention to headlines regarding the spreading of the corona virus. Meanwhile, the global calendar is light today with the only scheduled release of the German IFO index for January.
"As the Chinese New Year has kicked off, markets will continue to pay close attention to headlines regarding the spreading of the corona virus. Later this week Chinese PMI figures (Friday) will be closely watched for any potential negative impact already showing up in service sector activity."
"We start the week in a quiet manner on the data front with the German IFO index for January released today. In light of a further rebound in the ZEW and PMI numbers last week, we expect IFO to chime in with the signal that the gloomy skies over Germany's manufacturing sector are brightening."
"Later this week, we look forward to the FOMC (Wednesday) and Bank of England (Thursday) meetings and European inflation figures (Friday)."
During today's Asian trading, the yen is rising against the dollar and the euro in the face of increased demand for safe haven assets due to concerns about a new type of coronavirus that causes pneumonia, which was detected in China. The offshore yuan has fallen to its lowest level in the last 4 weeks.
Chinese President XI Jinping said on Saturday that the rate of spread of the dangerous coronavirus in China is accelerating. "We are faced with a difficult situation, as the spread of the new coronavirus is accelerating," he was quoted as saying by official Chinese media.
According to official data, the number of people infected with pneumonia, the causative agent of which was previously unknown coronavirus, exceeded 2700 people, while 80 cases of death have already been registered. On Sunday, the Chinese authorities admitted that the epidemic has not yet been brought under control, despite restrictions on leaving a number of cities in the country.
About 5 million residents left the Chinese city of Wuhan, the epicenter of the new coronavirus, before authorities isolated it due to the threat of spreading the disease, the South China Morning Post reported, citing the city's mayor, Zhou Xianwang.
The Chinese authorities extended the official weekend on the occasion of the Lunar new year celebration for 3 days in order to "reduce mass gatherings of people" and "prevent the spread of the epidemic".
In addition to China, cases have been identified in Thailand, Australia, Singapore, Japan, South Korea, the United States, Malaysia, France, Vietnam, and Nepal.
FXStreet reports that Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, suggested that in light of the recent price action, Cable could attempt a test of the area below the 1.2900 mark.
"GBP/USD charted an outside day to the downside on Friday and it is possible that it will react back to its 1.2893 uptrend and while this holds we will assume that there is scope for a deeper recovery to the 1.3285 Fibonacci retracement."
"The market should remain underpinned by the 1.2893 uptrend and the December low at 1.2908. Failure here would put the 200 day moving average at 1.2690 back on the plate."
Resistance levels (open interest**, contracts)
Price at time of writing this review: $1.1028
Support levels (open interest**, contracts):
- Overall open interest on the CALL options and PUT options with the expiration date February, 7 is 56319 contracts (according to data from January, 24) with the maximum number of contracts with strike price $1,1350 (4631);
Resistance levels (open interest**, contracts)
Price at time of writing this review: $1.3063
Support levels (open interest**, contracts):
- Overall open interest on the CALL options with the expiration date February, 7 is 24611 contracts, with the maximum number of contracts with strike price $1,3600 (3935);
- Overall open interest on the PUT options with the expiration date February, 7 is 21817 contracts, with the maximum number of contracts with strike price $1,3000 (3251);
- The ratio of PUT/CALL was 0.89 versus 0.88 from the previous trading day according to data from January, 24
* - The Chicago Mercantile Exchange bulletin (CME) is used for the calculation.
** - Open interest takes into account the total number of option contracts that are open at the moment.
|Raw materials||Closed||Change, %|
|Index||Change, points||Closed||Change, %|
|09:00||Germany||IFO - Current Assessment||January||98.8||99.2|
|09:00||Germany||IFO - Expectations||January||93.8||95|
|09:00||Germany||IFO - Business Climate||January||96.3||97|
|09:30||United Kingdom||Mortgage Approvals||December||43.7|
|15:00||U.S.||New Home Sales||December||0.719||0.73|
Avviso sui rischi dell'investimento: Il trading sul Forex e CFD a margine comporta un alto livello di rischio e può non essere adatto a tutti gli investitori. I CFD sono strumenti complessi e comportano un alto rischio di perdere denaro rapidamente a causa della leva finanziaria. Il 69% dei conti degli investitori al dettaglio perde denaro quando trada i CFD tramite questo provider. Prima della negoziazione è necessario prendere in considerazione il proprio livello di esperienza e la propria situazione finanziaria. TeleTrade usa il massimo impegno per fornire ai propri clienti tutte le informazioni necessarie e le più appropriate misure di protezione ma, nel caso in cui i rischi risultino ancora poco chiari, esortiamo i nostri clienti ad avvalersi anche di una consulenza indipendente.
© 2011-2020 TeleTrade-DJ International Consulting Ltd
TeleTrade-DJ International Consulting Ltd è registrata come società d'investimento a Cipro (CIF: Cyprus Investment Firm) con il numero di registrazione HE272810 e con licenza rilasciata dalla Securities and Exchange Commission Cipro (CySEC) con il numero 158/11.
TeleTrade-DJ International Consulting Ltd opera in conformità con le direttive europee MiFID.
Le informazioni contenute in questo sito hanno mero scopo informativo. Tutti i servizi e le informazioni provengono da fonti ritenute attendibili. TeleTrade-DJ International Consulting Ltd ( per brevità, "TeleTrade") e/o terzi fornitori di informazioni, non danno alcuna garanzia sui servizi erogati e sulle informazioni fornite. Utilizzando tali informazioni e servizi, l'utente accetta che TeleTrade non si assuma – in nessun caso – alcuna responsabilità nei confronti di qualsivoglia persona o ente per qualsiasi perdita o danno, in tutto o in parte imputabili all'affidamento su tali informazioni e servizi.
TeleTrade collabora esclusivamente con istituti finanziari regolamentati per la custodia e sicurezza dei fondi dei clienti. Si prega di consultare l’elenco completo delle banche e delle società intermediarie che prendono in carico le transazioni finanziarie dei clienti.
Si prega di prendere completa visione di tutte le condizioni di utilizzo.
Per ottimizzare l'esperienza di navigazione dei visitatori, TeleTrade utilizza i cookie nei suoi servizi web. Continuando a navigare sul nostro sito, quindi, l'utente accetta di utilizzare i cookie. Puoi modificare il tuo consenso o visualizzare la nostra dichiarazione sui cookie qui.
TeleTrade non offre i propri servizi a residenti o cittadini degli Stati Uniti d'America e di Belgio.
I CFD sono strumenti complessi e presentano rischio significativo di perdere denaro a causa della leva finanziaria. Il 69% di conti di investitori al dettaglio perde denaro negoziando CFD con questo fornitore. Valuti la sua comprensione dei CFD e se può permettersi di correre l’elevato rischio di perdere il suo denaro.