MARKET BRIEFING – LONDON OPEN 16.11.2015
Overnight, the Cabinet Office of the Japanese Government published Preliminary Third Quarter Gross Domestic Product numbers.
Unfortunately, the data that was presented for the third biggest global economy was extremely disappointing.
The markets had expected a GDP number of -0.1%, however, the actual release when it was announced stood at -0.2%.
Last night’s negative GDP data is the second quarter in succession that the Japanese economy has contracted. From a technical standpoint, the Japanese economy has now entered into a recession.
The sluggish GDP data will now put further pressure on the Shinzo Abe administration and the Bank of Japan to continue with a programme of economic stimulus and structural corrections.
The Japanese Government has however tried to put a positive spin on the latest GDP Data with Akira Amari, who is the Economics Minister saying “While there are risks such as overseas developments, we expect the economy to head toward a moderate recovery thanks to the effect of various (stimulus) steps taken so far.”
EURUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1.0840
Target 2: 1.0635
Projected range in ATR’s: 0.0105
Daily control level: 1.0830
GBPUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.5325
Target 2: 1.5125
Projected range in ATR’s: 0.0102
Daily control level: 1.5186
USDJPY
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.5325
Target 2: 1.5125
Projected range in ATR’s: 0.0102
Daily control level: 1.5186
USDCHF
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.0135
Target 2: 0.9985
Projected range in ATR’s: 0.0077
Daily control level: 0.99
USDCAD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.3395
Target 2: 1.3205
Projected range in ATR’s: 0.0098
Daily control level: 1.3265
AUDUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 0.7185
Target 2: 0.7050
Projected range in ATR’s: 0.0071
Daily control level: 0.7085
GOLD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1104.00
Target 2: 1074.00
Projected range in ATR’s: 15.12
Daily control level: 1079.00
OIL
The intraday technical outlook
Trend 1 hour: Down
Target 1: 43.50
Target 2: 40.50
Projected range in ATR’s: 1.63
Daily control level: 43.40
MORE ON ACFXblog.com