MARKET BRIEFING – LONDON OPEN 10.11.2015
The Organisation for Co-operation and Development in its latest update for Global GDP has cut its forecast from 3.0% to 2.9%.
The OECD has also raised fears that the slowdown in growth is now pushing the international economy close to levels which would signal a global recession.
China was highlighted as a main reason behind the drop off in GDP as it sighted that reduction in demand for imported commodities was affecting neighbouring Asian nations.
However, the OECD sounded more optimistic for 2016 and 2017 as it predicted a pickup in growth.
The OECD identified that stimulus measures were taken by China and other countries as the main reason why it predicted that there would be a bounce next year.
The OECD decided to add its say on the debate with respect to United States interest rates and called upon the Federal Reserve to go ahead with its expected increase in the Fed Funds rate this coming December.
A move to increase the US benchmark interest rate by 25 bp would be the first step in nominalizing the interest rate environment.
A December move by the FOMC would come at a time when there are real signs that the United States economic recovery is taking off.
These signs of positive growth were highlighted last Friday when the US Department of Labor Statistics published extremely strong Jobs Report with both the Non-Farm Payrolls and Average Hourly Earnings releases beating estimates by a wide margin.
EURUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1.0850
Target 2: 1.0640
Projected range in ATR’s: 0.0108
Daily control level: 1.0900
GBPUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1.5220
Target 2: 1.5005
Projected range in ATR’s: 0.0108
Daily control level: 1.5400
USDJPY
The intraday technical outlook
Trend 1 hour: Up
Target 1: 124.00
Target 2: 122.25
Projected range in ATR’s: 0.88
Daily control level: 120.60
USDCHF
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.0150
Target 2: 0.9950
Projected range in ATR’s: 0.0083
Daily control level: 0.9880
USDCAD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.3390
Target 2: 1.3180
Projected range in ATR’s: 0.0105
Daily control level: 1.3140
AUDUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 0.7115
Target 2: 0.6970
Projected range in ATR’s: 0.0074
Daily control level: 0.7170
GOLD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1106.00
Target 2: 1077.00
Projected range in ATR’s: 14.28
Daily control level: 1111.00
OIL
The intraday technical outlook
Trend 1 hour: Down
Target 1: 46.00
Target 2: 43.50
Projected range in ATR’s: 1.54
Daily control level: 45.95
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