ECB'’s Lautenschlager Says “Clock Is Ticking” For Banks In Brexit Preparation

By | August 16, 2017

Eurozone banks should prepare themselves for the worst case situation of a tough Brexit and they need to accelerate their preparatory work, European Reserve bank Executive Board member Sabine Lautenschlager said Wednesday.

“I have a really clear message to both smaller and larger banks: the clock is ticking,” Lautenschlager, who is also the vice-chair of the ECB Supervisory Board, said in an interview in the bank’s Guidance Newsletter.

“Nobody knows how Brexit will play out, and that’s why all impacted banks must prepare themselves with a difficult Brexit in mind.”

The banks are not as far advanced as supervisors would like them to be, she stated.

Lots of big banks who want to relocate operation to the euro area have made progress in preparation, however have actually not made any decisions yet on ways to organize their services, she noted.

Lautenschlager advised the banks to hurry, stating, “We just have a narrow time frame in which to examine strategies and applications, following a standard procedure we have actually currently communicated.”

She also cautioned versus competitors amongst various euro location nations in drawing in banks leaving the UK. “We will oppose any race to the bottom in supervisory requirements,” the leading ECB official said.

While she was uncertain as to how the post Brexit landscape will appear like, Lautenschlager asserted that London will no longer be an automatic entry indicate the European Union, though it will stay an essential international monetary hub.

The product has been offered by InstaForex Company – www.instaforex.com

Jonathon Alexander

Housing Starts Below Expectations In July

By | August 16, 2017

Government data released on Wednesday showed that real estate starts unexpectedly fell in July from the previous month’s levels. Building authorizations were likewise below expectations.

A report provided by the U.S. Department of Commerce said real estate starts fell 4.8 percent from the previous month, dropping to an annual rate of 1.155 million units in July. This was down from the modified June price quote of 1.213 million systems.

July’s real estate starts figure was 5.6 percent lower than in the same period in 2015.

Economists had actually expected housing begin to edge approximately a rate of 1.225 million from the 1.215 million originally reported for the previous month.

The Commerce Department said structure licenses also fell throughout the month. The figure come by 4.1 percent compared with the previous month, slipping to a rate of 1.223 million systems in July. June’s figure was modified to a rate of 1.275 million units.

Structure licenses, a sign of future housing need, had been expected to come in at a speed of about 1.25 million units.

The material has actually been offered by InstaForex Company – www.instaforex.com

Jonathon Alexander

Trading Prepare for EUR/USD and GBP/USD for August 16, 2017 888011000 110888 Technical outlook: The EUR/USD hourly chart setup has actually been presented here for an alternate view in extension to what was gone over yesterday. The set failed to print fresh lows, rather, it is establishing for a complex restorative wave structure as labeled here. Moving forward if EUR/USD does not break listed below 1.1687 levels, we should anticipate a rally towards a minimum of 1.1800 or to 1.1850 levels as seen in Red Color here. The termination point of the wave (1)is clear at 1.1687 levels however that of the wave( 2)could be either at 1.1800 or 1.1850 levels, depending on the structure of correction. A safe method to trade the above set would be to offer on rallies from here. Immediate support is seen at 1.1687 levels, while resistance is strong at 1.1910 levels respectively. It is more possible for EURUSD to form a lower top near 1.1800levels before reversinglower again.Trading strategy:Please remain long with a stop below 1.1687, targeting 1.1800 and after that reverse with a stop above 1.1910. GBP/USD chart setups: Technical outlook: The GBP/USD short term structure has actually existed here with probable wave counts. Please note that now with yet another low printed today at 1.2837 levels, the impulsive drop from 1.3267 levels seems complete. Furthermore, the pair has produced a 60/70 pip impulsive rally as well, which might be the very first leg up at a small degree. This likewise suggests that the much-awaited counter pattern rally may have finally activated. Please note that if the above wave count holds well, a 3 wave counter pattern rally A-B-C is expected to finish through 1.3010/ 20and consequently 1.3100 levels as seen here. Likewise note that 1.3100 levels are the Fibonacci 0.618 resistancetoo, of the entire drop in between 1.3267 and 1.2837 levels respectively. Immediate support is seen at 1.2837 levels, while resistance is at 1.3020 levels respectively.Trading strategy: Long now from 1.2860/ 70 levels, stop below1.2837, target 1.3020 and1.3100 Basic outlook: Watch out for FOMC Minutes today at 0200 PM EST.Good luck!The product has actually been offered by InstaForex Company-www.instaforex.com

By | August 16, 2017

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Technical outlook:

The EUR/USD hourly chart setup has been presented here for an alternate view in continuation to what was discussed yesterday. The pair failed to print fresh lows, instead, it is setting up for a complex corrective wave structure as labeled here. Going forward if EUR/USD does not break below 1.1687 levels, we should expect a rally towards at least 1.1800 or towards 1.1850 levels as seen in Red Color here. The termination point of the wave (1) is clear at 1.1687 levels but that of the wave (2) could be either at 1.1800 or 1.1850 levels, depending on the structure of correction. A safe way to trade the above pair would be to sell on rallies from here. Immediate support is seen at 1.1687 levels, while resistance is strong at 1.1910 levels respectively. It is more probable for EURUSD to form a lower top near 1.1800 levels before reversing lower again.

Trading plan:

Please remain long with a stop below 1.1687, targeting 1.1800 and then reverse with a stop above 1.1910.

GBP/USD chart setups:

analytics59942d187cbd5.jpg

Technical outlook:

The GBP/USD short term structure has been presented here with probable wave counts. Please note that now with yet another low printed today at 1.2837 levels, the impulsive drop from 1.3267 levels looks to be complete. Furthermore, the pair has produced a 60/70 pip impulsive rally as well, which could be the first leg up at a small degree. This also indicates that the much-awaited counter trend rally might have finally triggered. Please note that if the above wave count holds well, a three wave counter trend rally A-B-C is expected to complete through 1.3010/20 and subsequently 1.3100 levels as seen here. Also note that 1.3100 levels are the Fibonacci 0.618 resistance as well, of the entire drop between 1.3267 and 1.2837 levels respectively. Immediate support is seen at 1.2837 levels, while resistance is at 1.3020 levels respectively.

Trading plan:

Long now from 1.2860/70 levels, stop below 1.2837, target 1.3020 and 1.3100

Fundamental outlook:

Watch out for FOMC Minutes today at 0200 PM EST.

Good luck!

The material has been provided by InstaForex Company – www.instaforex.com

Jonathon Alexander

NZD/USD Intraday technical levels and trading suggestions for August 16, 2017 888011000 110888 Daily Outlook The NZD/USD pair has actually been trending up within the portrayed bullish channel given that January 2016. In November 2016, early indications of bullish weak point wererevealed on the chart when the set failed to record a new high above 0.7400. A bearish breakout of the lower limitation of thechannel occurred in December 2016. In February 2017, the illustrated short-term sag was started in the portrayed supply zone(0.7310-0.7380).A current bullish breakout above the sag line took location on May 22. Ever since, the market has been bullish as illustrated on thechart.The cost zone of 0.7150-0.7230 (Key-Zone)stood as a temporary resistance zone till a bullish breakout was revealed above 0.7230.This resulted in a fast bullish advance towards the next supply zone around 0.7310-0.7380 which was temporarily breached to the upside.The current bearish pullback was carried out towards the costzone of 0.7310-0.7380(newly-established demand-zone )which failed to offer enough bullish support for the NZD/USD pair.Re-consolidation listed below the rate level of 0.7300 improves the bearish side of the market. This brings the EUR/USD set again towards 0.7230-0.7150 (Key-Zone )where rate action should be watched for a possible BUY entry.The material has been offered by InstaForex Business-www.instaforex.com

By | August 16, 2017

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Daily Outlook

The NZD/USD pair has been trending up within the depicted bullish channel since January 2016.

In November 2016, early signs of bullish weakness were expressed on the chart when the pair failed to record a new high above 0.7400.

A bearish breakout of the lower limit of the channel took place in December 2016.

In February 2017, the depicted short-term downtrend was initiated in the depicted supply zone (0.7310-0.7380).

However, a recent bullish breakout above the downtrend line took place on May 22. Since then, the market has been bullish as depicted on the chart.

The price zone of 0.7150-0.7230 (Key-Zone) stood as a temporary resistance zone until a bullish breakout was expressed above 0.7230.

This resulted in a quick bullish advance towards the next supply zone around 0.7310-0.7380 which was temporarily breached to the upside.

The recent bearish pullback was executed towards the price zone of 0.7310-0.7380 (newly-established demand-zone) which failed to offer enough bullish support for the NZD/USD pair.

Re-consolidation below the price level of 0.7300 enhances the bearish side of the market. This brings the EUR/USD pair again towards 0.7230-0.7150 (Key-Zone) where price action should be watched for a possible BUY entry.

The material has been provided by InstaForex Company – www.instaforex.com

Jonathon Alexander

Intraday technical levels and trading suggestions for EUR/USD for August 16, 2017 888011000 110888 Regular monthly Outlook In January2015, the EUR/USD pair moved below the significant demand levels near 1.2100(multiple previous bottoms set in July 2012 and June 2010). Hence, a long-lasting bearish target was projected toward 0.9450. In March 2015, EUR/USD bears challenged the regular monthly need level around 1.0500, which had actually been formerly reached in August 1997. In the longer term, the level of 0.9450 stays a predicted target if any monthly candlestick achieves bearish closure below the portrayed monthly need level of 1.0500. However, the EUR/USD pair was trapped within the illustrated debt consolidation variety(1.0500-1.1450)until the present bullish breakout was carried out above 1.1450. The current bullish breakout above 1.1450 allows a quick bullish advance to 1.1850 and 1.2000-1.2100 where price action should be looked for evident bearish rejection and a valid OFFER Entry. Daily Outlook In January 2017, the previous sag reversed when the Head and Shoulders pattern wasestablished around 1.0500. Since then, evident bullish momentum has been expressed on the chart.As prepared for, the ongoing bullish momentum permitted the EUR/USD set topursue additional bullish advance to 1.1415-1.1520(Daily Supply-Zone). The daily supply zone cannot stop briefly the continuous bullish momentum. Rather, an apparent bullish breakout is being witnessed on the chart. The nearest supply level to fulfill the pair is located around 1.2080 (Level of previousmultiple bottoms)where bearish rejection can be anticipated.On the other hand, the price zone of 1.1415-1.1520 stands as a prominent DEMAND zone to be enjoyed throughout the current bearish pullback.The material has actually been provided by InstaForex Business – www.instaforex.com

By | August 16, 2017

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Monthly Outlook

In January 2015, the EUR/USD pair moved below the major demand levels near 1.2100 (multiple previous bottoms set in July 2012 and June 2010). Hence, a long-term bearish target was projected toward 0.9450.

In March 2015, EUR/USD bears challenged the monthly demand level around 1.0500, which had been previously reached in August 1997.

In the longer term, the level of 0.9450 remains a projected target if any monthly candlestick achieves bearish closure below the depicted monthly demand level of 1.0500.

However, the EUR/USD pair was trapped within the depicted consolidation range (1.0500-1.1450) until the current bullish breakout was executed above 1.1450.

The current bullish breakout above 1.1450 allows a quick bullish advance towards 1.1850 and 1.2000-1.2100 where price action should be watched for evident bearish rejection and a valid SELL Entry.

analytics5994292cbc11c.png

Daily Outlook

In January 2017, the previous downtrend reversed when the Head and Shoulders pattern was established around 1.0500. Since then, evident bullish momentum has been expressed on the chart.

As anticipated, the ongoing bullish momentum allowed the EUR/USD pair to pursue further bullish advance towards 1.1415-1.1520 (Daily Supply-Zone).

The daily supply zone failed to pause the ongoing bullish momentum. Instead, an evident bullish breakout is being witnessed on the chart. The nearest supply level to meet the pair is located around 1.2080 (Level of previous multiple bottoms) where bearish rejection can be anticipated.

On the other hand, the price zone of 1.1415-1.1520 stands as a prominent DEMAND zone to be watched during the current bearish pullback.

The material has been provided by InstaForex Company – www.instaforex.com

Jonathon Alexander

International macro summary for 16/08/2017

By | August 16, 2017

Worldwide macro summary for 16/08/2017: The United States economy is slowly, however surely getting rid of the headwinds . The current data from US producing sector in type of an Empire State Production Index(

a regular monthly study of makers in New york city State performed by the Federal Reserve Bank of New york city )revealed, that the index reinforced from 9.8 to 25.2 points. This was substantially above consensus expectations of 10.0 points and the strongest reading considering that September 2014. The main reason for such an excellent information was a modest recovery in delivery index(from 10.5 to 12.5 points), new orders(from 13.3 to 20.2 points ). The stocks were the only index with an unfavorable reading at the level of -3.1 points. Moreover, positive signs strengthened significantly on the month with the 6-month outlook index at 45.2 from 34.9 the previous month.Manufacturing of late has actually shown some tentative indications of strength, helped by a recovery in the oil sector as costs have supported and the recent information ought to have a substantial effect in improving confidence in US manufacturing sector.

Company activity is growing more powerful and the work is increasing at a faster speed. The only doubt is whether companies can press through cost increases, but the next couple of months will bring more information and a more specific outlook will be generated.Let’s now take a look at the EUR/USD technical image at the H4 time frame. The price had actually bounced 3 times from the level of 1.1686, so any further offense of this level will open the roadway to the next technical support at the level of 1.1612. The total market conditions are

neutral, but the reducing up momentum indicates, that bears are still in control over this market. The material has actually been offered by InstaForex Business -www.instaforex.com

Jonathon Alexander

Basic Analysis of AUD/USD for August 16, 2017 888011000 110888 AUD/USD has been in a bearish unstable trend just recently after recovering from 0.8050 resistance location. Today AUD MI Leading Index report was published with a positive worth at 0.1% from the previous unfavorable worth of -0.2% and Wage Price Index was published as anticipated at 0.5% which formerly was at 0.6%. On the USD side, today Structure Allows report is going to be released which is anticipated to reduce to 1.25 M from the previous figure of 1.28 M, Housing Begins report is expected to be the same at 1.22 M and Crude Oil Stocks report is anticipated to show less deficit at -3.0 M from the previous figure of -6.5 M. USD has been quite strong just recently due to favorable economic reports which likewise showed in this currency pair whereas the dominant currency AUD might not hold the gains for long. Since today, AUD has been rather positive with its economic reports and some high effect USD financial reports are yet to be released but AUD is expected to have an advantage over USD in the coming days.Now let uslook at the technical view, the cost is presently bouncing off the support area of 0.7750 to 0.7840. After a constant impulsive bullish trend, the set has actually just recently retraced towards the support location and presently the bullish bias is expected to continue higher towards 0.8050 and 0.8150 resistance location in the coming days. As the cost stays above the support level of 0.7750 with a day-to-day close the bullish pressure is anticipated to continue even more. The material has been provided by InstaForex Business- www.instaforex.com

By | August 16, 2017

AUD/USD has been in a bearish volatile trend recently after bouncing back from 0.8050 resistance area. Today AUD MI Leading Index report was published with a positive value at 0.1% from the previous negative value of -0.2% and Wage Price Index was published as expected at 0.5% which previously was at 0.6%. On the USD side, today Building Permits report is going to be published which is expected to decrease to 1.25M from the previous figure of 1.28M, Housing Starts report is expected to be unchanged at 1.22M and Crude Oil Inventories report is expected to show less deficit at -3.0M from the previous figure of -6.5M. USD has been quite strong recently due to positive economic reports which also showed in this currency pair whereas the dominant currency AUD could not hold the gains for long. As of today, AUD has been quite positive with its economic reports and some high impact USD economic reports are yet to be published but AUD is expected to have an upper hand over USD in the coming days.

Now let us look at the technical view, the price is currently bouncing off the support area of 0.7750 to 0.7840. After a constant impulsive bullish trend, the pair has recently retraced towards the support area and currently the bullish bias is expected to continue higher towards 0.8050 and 0.8150 resistance area in the coming days. As the price remains above the support level of 0.7750 with a daily close the bullish pressure is expected to continue further.

analytics59940e323ada6.jpg

The material has been provided by InstaForex Company – www.instaforex.com

Jonathon Alexander

Need for the dollar is growing

By | August 16, 2017

Strong growth in retail sales in July added to the return of need for the dollar. According to a U.S. Census Bureau report launched on Tuesday, sales rose 0.6 %in July, well above the 0.4%projection. Moreover, the June report was also modified upwards, and instead of a 0.2 %decline, we now have to begin with an increase of 0.3%. The evidence suggests that the weakness of the consumer sector is not as deep as previously thought, and earnings development is sufficient to guarantee sustainable need. At the exact same time, maintaining a high level of consumer demand is also guaranteed by the quick development of household financial obligation. Inning accordance with the Federal Reserve Bank of New York, the overall debt of households in the 2nd quarter was 12.84 trillion dollars, which is 552 billion more than a year earlier. These information show that people are waiting for favorable modifications that will enhance their economic condition in the future, and are all set to invest more, depending on the growth of incomes. At the same time, it is not possible to hold off the reforms since the increase in household financial obligation, inning accordance with World Bank research study, has a favorable effect just in the outlook for the year, after which the reverse dependence is included. An increase in household financial obligation by 1 %relative to the GDP causes a decline of 0.1 %in the long-lasting outlook.The retail information was not the only favorable signal. Import rates increased by 1.5%, which was much better than projections, while the development of export costs was 0.1%. The Federal Reserve Bank of New York reported a boost in organisation activity in the production sector to 24.2 p, which is a three-year high and well above the projected 10.0%.< img width ="450 "src=" http://qkfx.com/wp-content/uploads/2017/08/demand-for-the-dollar-is-growing.png"alt= "Analytics5993e84883da3.png "/ > Financiers continue to wait for the start of the reform program announced by Trump throughout the pre-election race. The report of the Treasury on the inflow of foreign capital released yesterday revealed

that financiers are leaving Treasuries. The lowest level was reached in November 2016, after which the demand for bonds is growing on a monthly basis and must once again become positive in the future. The dynamics of the return of foreign financiers in the debt securities of the United States federal government and the stock exchange suggest a significant capacity for self-confidence in the expected reforms.Investors are not anxious relating to the bad collection of taxes, or the destruction of the Treasury’s money desk, nor of Trump’s first obstacles in challenging the Congress on medical reform. The expectation of

economic development, possession returns amidst rising Fed rates and tax cuts exceed any concerns.< img width="450 "src ="http://qkfx.com/wp-content/uploads/2017/08/demand-for-the-dollar-is-growing-1.png "alt ="Analytics5993e85ea39b0.png"/ > Strong information releases on Tuesday resulted in a modification of the forecasts for the rate of interest hikes. A couple of days back, financiers, inning accordance with CME, saw a 35.9%likelihood of another rate increase this year. The other day it rose to 49.5%-a very strong development in a short period. The volatility is triggered, from one side, by the broad spread of estimates in the current scenario and of the genuine state of the United States economy. And also, on the other hand, reflects the desire of investors to see a favorable program. The Federal Reserve Bank of Atlanta raised its projection for US GDP by 3Q to 3.7% on Tuesday, supporting the trend on its expectations for positive changes.Thus, a number of indirect information shows a strong deferred need for the dollar, and the publication of the Federal

Reserve’s minutes for the July meeting again causes the increased interest. In spite of the fact that the meeting was”passing”and was not accompanied by a modification in macroeconomic forecasts or an in-depth interview, it is the last before the essential FOMC conference on September 14 and should consist of standards for rates and a decrease in the balance sheet.On Monday, the US president purchased an investigation into China against copyright violation cases. This move was not unexpected, as preparation for it was conducted for a long time.However, this is the first time in many years a genuine possibility was expressed to use not only Short article 301 of the 1974 Merchant Act to unilaterally set barriers for export products, however likewise the Law”On International Emergency situation Economic Powers”from 1977, which provides the US president the right to keep track of any economic operations in the event of a threat to nationwide security.The beginning of active actions will add to increased stress and will cause the long-awaited demand for the dollar. Months of correction, which began in January, is nearing its completion.The material has actually been supplied by InstaForex Company-www.instaforex.com

Jonathon Alexander