|By Marketwired .||
|February 18, 2014 09:57 PM EST||
SINGAPORE, SINGAPORE -- (Marketwired) -- 02/18/14 -- In FXPRIMUS' Market Brief of The Week for 17 February, the brokerage firm's Senior Economist, Jimmy Zhu, looks at how the Euro Zone 4Q Gross Domestic Product is influencing the market.
Euro Zone 4Q Gross Domestic Product (GDP) Result Sent the Single Currency Higher
Euro Zone 4Q GDP expanded 0.3% QoQ, beating earlier estimate of 0.2%. However, the numbers are similar to our last week's forecast, or a Euro Dollar rally has been expected. The key issue here is that two of the largest economy in the currency bloc, Germany and France had faster growth than predicted earlier; with the numbers of 0.4% and 0.3% respectively. Italy, which is the third-largest economy, posted an expansion for the first time in more than two years, which scored a 0.1% expansion on quarter on quarter basis.
Germany GDP QoQ (white), France GDP QoQ (yellow) & Italy GDP QoQ (red): http://media3.marketwire.com/docs/fxp218fig1.jpg.
Based on Euribor Market, there are decent percentages for next month's rate cut bets despite accelerated growth. All thanks to recent tepid inflation numbers. However, we still believe that the European Central Bank (ECB) could "hold on" in the coming policy meeting as overall conditions in currency bloc did not warrant further easing at this moment, unless inflation fell further by the end of the month. Inflation in the Euro Area slowed down to 0.7% last month, less than half of ECB's goal of just below 2%.
This week, Euro Zone Purchasing Managers' Index (PMI) and German ZEW survey for February will give clues on how the latest recovery pace is. Euro Zone composite PMI for February may have risen above 53% for the first time since June 2011, according to various recent indicators. The index has been above 50% thresholds since July. As for the expectations on German ZEW, we think the numbers is likely to remain flat compared to January's reading. Overall, there is little downside risk to Euro Dollar this week besides some technical consolidation, if any.
In Asia, Chinese lending numbers is surprisingly to the upside. But do not panic if you only look at aggregate figures, because new Yuan loans contributed substantially last month. China's total aggregated financing surged to a historically high level, reaching 2,580 trillion RMB. New Yuan loans surged to 1,320 trillion RMB from the 482.50 trillion RMB in December. If we do a simple calculation, social financing only increased 1.4% YoY in January to 2.6 trillion RMB. Trust loans tumbled to 49% and corporate bonds fell to 85%, overshadowing a 23% jump in new loans. Trust loans and bonds' share of social financing also dropped to 5.9% from 17.1% a year earlier. Government clampdown on shadow banking and tight liquidity may weigh on corporate funding this year. But the good news is that the shortage of liquidity in Chinese banking system does not look real. The 7-day repo rate has calmed down to the level of below 5%.
Record new credit in China in the month of January may help economy in maintaining momentum amid government efforts to rein in risky lending. Aussie continues to climb higher. The bets are increasing that the next move for the Reserve Bank of Australia (RBA) is to raise the rate, instead of cutting it. In its housing market, eight straight months of rising housing costs in Sydney have pushed the prices to a record high. Australia's weaker exchange rate will help accelerate the country's return to trend economic growth and is likely to spur inflation for a period of time, as quoted in the text of a speech last week in Sydney.
This time, the Dollar's weakening is externally driven instead of being driven domestically. Until now, the Federal Reserve (Fed) wants to continue with its tapering program until the end of the year. In this case, stronger external growth such as the Euro Zone will lower the value of the Greenback.
Top news this week
German ZEW Economic Sentiment
I expect figures to come in at 61.5%
German Manufacturing Purchasing Managers' Index (PMI)
I expect figures to come in at 56.3%
AUDUSD - Short at 0.8990
U.S. Dow Index has climbed almost 3% in last Friday's close since the Monday low, even after we see the tepid NFP report. It looks like that the market seems to believe that the slower jobs added was mainly due to bad weather in the U.S. Given the fact that the coming FOMC meeting will be in March and Yellen is unlikely to change the U.S. economic forecast lower this week before the Congress and the Senate, little fresh triggers could push the volatilities higher substantially.
Should confidence improve in the largest economy, the USD's downside could be limited. Among the major pair, AUDUSD is moving toward its resistance level around 0.90.
We would like to short this pair if its price rebounds to 0.8990.
Entry Price - 0.8990 Stop Loss - 0.9050 1st Target Price - 0.8940 2nd Target price - 0.8900
FXPRIMUS offers retail traders a level of trade execution, service quality and fund safety that are normally reserved only for the largest investors. Serving traders in 205 countries across 6 continents FXPRIMUS combines an unmatched level of fund safety with regular independent audits of company financials and Straight Through Processing, top notch execution with tight spreads, prompt and responsive customer support, ISO 27001 certification in Information Security, ISO 9001:2008 certification in Quality Management and an industry-leading trader toolset that includes free access to powerful trader tools. FXPRIMUS truly is The Safest Place To Trade.
Even though you are running an agile development process, that doesn’t necessarily mean that your performance testing is being conducted in a truly agile way. Saving performance testing for a “final sprint” before release still treats it like a waterfall development step, with all the cost and risk that comes with that. In this post, we will show you how to make load testing happen early and often by putting SLAs on the agile task board.
Sep. 5, 2015 07:00 AM EDT
SYS-CON Events announced today the Containers & Microservices Bootcamp, being held November 3-4, 2015, in conjunction with 17th Cloud Expo, @ThingsExpo, and @DevOpsSummit at the Santa Clara Convention Center in Santa Clara, CA. This is your chance to get started with the latest technology in the industry. Combined with real-world scenarios and use cases, the Containers and Microservices Bootcamp, led by Janakiram MSV, a Microsoft Regional Director, will include presentations as well as hands-on...
Sep. 5, 2015 07:00 AM EDT Reads: 443
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Sep. 5, 2015 07:00 AM EDT Reads: 516
Manufacturing connected IoT versions of traditional products requires more than multiple deep technology skills. It also requires a shift in mindset, to realize that connected, sensor-enabled “things” act more like services than what we usually think of as products. In his session at @ThingsExpo, David Friedman, CEO and co-founder of Ayla Networks, will discuss how when sensors start generating detailed real-world data about products and how they’re being used, smart manufacturers can use the ...
Sep. 5, 2015 07:00 AM EDT Reads: 118
It’s been proven time and time again that in tech, diversity drives greater innovation, better team productivity and greater profits and market share. So what can we do in our DevOps teams to embrace diversity and help transform the culture of development and operations into a true “DevOps” team? In her session at DevOps Summit, Stefana Muller, Director, Product Management – Continuous Delivery at CA Technologies, answered that question citing examples, showing how to create opportunities for ...
Sep. 5, 2015 06:45 AM EDT Reads: 550
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding bu...
Sep. 5, 2015 06:30 AM EDT Reads: 1,726
The Internet of Things is in the early stages of mainstream deployment but it promises to unlock value and rapidly transform how organizations manage, operationalize, and monetize their assets. IoT is a complex structure of hardware, sensors, applications, analytics and devices that need to be able to communicate geographically and across all functions. Once the data is collected from numerous endpoints, the challenge then becomes converting it into actionable insight.
Sep. 5, 2015 06:00 AM EDT Reads: 147
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
Sep. 5, 2015 06:00 AM EDT Reads: 143
Contrary to mainstream media attention, the multiple possibilities of how consumer IoT will transform our everyday lives aren’t the only angle of this headline-gaining trend. There’s a huge opportunity for “industrial IoT” and “Smart Cities” to impact the world in the same capacity – especially during critical situations. For example, a community water dam that needs to release water can leverage embedded critical communications logic to alert the appropriate individuals, on the right device, as...
Sep. 5, 2015 05:15 AM EDT Reads: 146
In his session at @ThingsExpo, Lee Williams, a producer of the first smartphones and tablets, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. He will explain how M2M controllers work through wirelessly connected remote controls; and specifically delve into a retrofit option that reverse-engineers control codes of existing conventional controller systems so the...
Sep. 5, 2015 05:00 AM EDT Reads: 297
ElasticBox, the agile application delivery manager, announced freely available public boxes for the DevOps community. ElasticBox works with enterprises to help them deploy any application to any cloud. Public boxes are curated reference boxes that represent some of the most popular applications and tools for orchestrating deployments at scale. Boxes are an adaptive way to represent reusable infrastructure as components of code. Boxes contain scripts, variables, and metadata to automate proces...
Sep. 5, 2015 04:30 AM EDT Reads: 156
To assist customers with legacy Windows Server 2003 that is no longer supported by Microsoft, Racemi has introduced fixed price packages for upgrading and migrating Windows Server 2003 servers to either Windows 2008 R2 or Windows 2012 R2 and the choice of Amazon Web Services (AWS) or SoftLayer cloud. "We're extending a lifeline by upgrading the legacy servers to more modern Windows Server platforms while taking advantage of cloud computing," said James Strayer, vice president of product managem...
Sep. 5, 2015 03:30 AM EDT Reads: 120
To support developers and operations professionals in their push to implement DevOps principles for their infrastructure environments, ProfitBricks, a provider of cloud infrastructure, is adding support for DevOps tools Ansible and Chef. Ansible is a platform for configuring and managing data center infrastructure that combines multi-node software deployment, ad hoc task execution, and configuration management, and is used by DevOps professionals as they use its playbooks functionality to autom...
Sep. 5, 2015 03:00 AM EDT Reads: 158
Skeuomorphism usually means retaining existing design cues in something new that doesn’t actually need them. However, the concept of skeuomorphism can be thought of as relating more broadly to applying existing patterns to new technologies that, in fact, cry out for new approaches. In his session at DevOps Summit, Gordon Haff, Senior Cloud Strategy Marketing and Evangelism Manager at Red Hat, discussed why containers should be paired with new architectural practices such as microservices rathe...
Sep. 5, 2015 02:00 AM EDT Reads: 467
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Sep. 5, 2015 01:30 AM EDT Reads: 1,007