ThinkForex - Analytics

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    Weekly wrap: 2nd Feb 2016

    A snapshot view of last week's money flow and events to help start the trading week.  




    JPY futures: Large speculators have their largets net long exposure since Feb 2012, when ut was tradng at 125.80. However since this report was compiled the Bank of Japan stunned the markets by becming the latest Central Bank to use negative yielding interest rates, switching from 0.1% to -0.1% and leaving further cuts on the table. 

    USD Futures: The long/short ratio remains relatively unchanged on the week whilst the price action remains contained to 98-100 range. Open interest (a proxy for volume) has halved since the 100.7 high in March 2015, to further highlight the hesitancy for the index to break to new highs. The correction is nearly 1 year old and we do run the risk of remaining in a complex correction for the foreseeable future. 


     

    MONTHLY PERFORMANCE


     

     US Q4 GDP expanded moderatly at 0.7%, below the 0.8% forecast. Only two weeks earlier it had been forecast around 1.5% but persitently week data saw some major revisions to the estimate leading up to it. 

     
    - US Core durables contracted 5.1%
     
    - FED and RBNZ held interest rates steady, at 0.5% and 2.5% respectively. 
     
    - BOJ stunned markets on Friday with a rate cut to -0.1%, whilst also leaving potential for further cuts in future. 
    WEEKLY PERFORMANCE


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