Nick Batsford, CEO of Tip TV, was joined by Zak Mir, technical analyst for Zak’s Traders Café, on the Tip TV Finance Show to discuss the BoJ meeting, the EUR/USD, as well as the latest GfK survey and a section of live charting.
BoJ stays put with inflation way off target
Batsford highlighted Elliott, who noted that at today’s central bank meeting in Tokyo the board voted 8-1 to keep rates unchanged at 0.1% and continue the QE programme to the tune of 80 trillion Yen per year. Later today they will release semi-annual long term forecasts for prices and the economy. Governor Kurado in his press conference noted that there was no need to ease monetary conditions further, at least not just now. This perhaps suggests they are expecting inflation to move back towards their 2% target. Yet Elliott also commented that CPI data showed Tokyo prices excluding fresh fish (which is the one the Japanese focus on) dropped by 0.2% in the year to October while nationwide inflation slipped by 0.1% in the year to September. Batsford also outlined FX Street, who commented that the BoJ stated that inflation is lower based on oil prices.
EUR/USD sees bullish RSI divergence
Batsford continued with FX Street, who added that there is bullish divergence on the 4-hour chart, with the bulls needing a daily close above 1.1088, meanwhile, weak Eurozone CPI could push EUR back to 1.09.
Live Charting
Mir began with RBS (L:RBS), and he noted that the bank has been a mess of late, and it needs a higher low above the 50-DMA to move beyond the 320 level.
In terms of Lloyds (L:LLOY), Mir commented that it had a gap down through the 50-DMA, yet still remains above 72 due to solid support, despite government selling.
Mir continued that SN has long-term support from August 2014, and this line fits towards £10.70.
When concerning Audioboom, he finished by outlining that the shares are ticking up, and it may be experiencing the beginning of the end of the stocks bear run.
Watch the video to see more analysis on CEY, MGGT, INL, BAE Systems (L:BAES) and Centrica (L:CNA).
More worries over the general economy for British consumers
Batsford highlighted Elliott, who concluded that the latest GfK survey on the British consumer shows that while personal finances have improved, worries about the economy more generally have increased.