Saturday, August 9, 2014

Action Insight Weekly Report 8-9-14

ActionForex.com
Action Insight Weekly Report Markets Snapshot

Geopolitical Risks Rocked Markets, Faded Towards Weekend

Geopolitical risks in Ukraine and Middle East were the main drivers in the financial markets last week. Global equities tumbled with DJIA hitting as low as 16333.78 while S&P 500 dived to 1904.78. Nonetheless, as Russia sought to de-escalate the tensions in Ukraine, stocks staged a relief rally on Friday as DIJA closed at 16553.93 while S&P 500 closed at 1931.59. Both ended the week higher indeed. US treasuries benefited from safe haven flows with 30 year yield extending recent fall to close at 3.226 while 10 year yield closed at 2.415, breaking May's low. In the currency markets, the Japanese yen and Swiss Franc were the biggest winners of the week on risk aversion. Dollar came next as the third strongest currencies. Commodity currencies were the weakest with Aussie and Canadian both additionally hit by respective employment data.

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Featured Technical Report

GBP/JPY Weekly Outlook

GBP/JPY's fall from 175.36 resumed last week and accelerated to as low as 171.21. The break of 172.26 support is taken as the sign of medium term topping. Initial bias remains on the downside this week for 169.53 key support level to confirm this bearish case. On the upside, break of 172.60 is needed to signal short term reversal. Otherwise, outlook will stay cautiously bearish.

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Suggested Readings

 

The Week in Review and Outlook

 

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