MARKET BRIEFING – LONDON OPEN 06.10.2015

MARKET BRIEFING – LONDON OPEN 06.10.2015

Postby Atlas CapitalFx » Tue Oct 06, 2015 11:32 am

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MARKET BRIEFING – LONDON OPEN 06.10.2015




The Reserve Bank of Australia this morning hosted its monthly policy meeting. The outcome of the meeting was the decision by the RBA to keep its benchmark cash rate on at 2% for the sixth straight month in succession.

This inaction was widely expected, especially as last month’s decision by the United States Federal Reserve to keep their own Fed Funds rate on hold was reinforced by a very soft Jobs Report which took many market participants and commentators by surprise.

The Reserve Bank of Australia now has a window of opportunity to be patient whilst it gauges the effect of its recent policy of monetary easing. Especially as it seems unlikely that a US rate hike will not happen during the FOMC’s October or December meetings with the markets now pricing in an initial rate increase for March 2016.

The Reserve Bank of Australia, in its statement, cited internal factors as being a key reason why the central bank declined to choose a path of further easing by pointed to a better than expected economic outlook.

There will further news from other central banks tomorrow. The trading day starts early on Wednesday with the Bank of Japan issuing its monthly Bank of Japan Report.
This is followed by news from London when we expect to see no change to the Official Bank Rate which currently stands at 0.50%.

However, traders and investors will be anxious to see if there is a shift in the prior month’s committee member bias. In September, the dovish sentiment won the day with the vote strongly in favour in keeping the rates unchanged with a majority of 8 to 1.

The way the members vote is not the whole story. The Bank of England Monetary Policy Statement should give us an insight on the current strength or weakness in the dovish bias. Furthermore, the markets will be looking for any references to the United States and more specifically, the Federal Reserve’s stance on interest rates and last week’s poor Jobs Report.






EURUSD

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The intraday technical outlook

Trend 1 hour: Up

Target 1: 1.1295

Target 2: 1.1065

Projected range in ATR’s: 0.0116

Daily control level: 1.1145





GBPUSD

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The intraday technical outlook

Trend 1 hour: Up

Target 1: 1.5250

Target 2: 1.5030

Projected range in ATR’s: 0.0108

Daily control level: 1.5105




USDJPY

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The intraday technical outlook

Trend 1 hour: Up

Target 1: 121.45

Target 2: 119.45

Projected range in ATR’s: 0.99

Daily control level: 118.65




USDCHF

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The intraday technical outlook

Trend 1 hour: Down

Target 1: 0.9845

Target 2: 0.9660

Projected range in ATR’s: 0.0093

Daily control level: 0.9795




USDCAD

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The intraday technical outlook

Trend 1 hour: Down

Target 1: 1.3190

Target 2: 1.2975

Projected range in ATR’s: 0.0107

Daily control level: 1.3250




AUDUSD

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The intraday technical outlook

Trend 1 hour: Up

Target 1: 0.7165

Target 2: 0.6970

Projected range in ATR’s: 0.0085

Daily control level: 0.7050



GOLD

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The intraday technical outlook

Trend 1 hour: Up

Target 1: 1150.00

Target 2: 1120.00

Projected range in ATR’s: 15.61

Daily control level: 1129.00



OIL

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The intraday technical outlook

Trend 1 hour: Up

Target 1: 48.00

Target 2: 45.00

Projected range in ATR’s: 0.0070

Daily control level: 44.20




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Atlas CapitalFx
 
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