Volkswagen Facing New Probe

Germany’s Federal Motor Transport Authority (KBA) is considering recalling more Volkswagen cars due to its emissions scandal, the ‘Bild am Sonntag’ newspaper has reported.

The KBA has opened an investigation into whether a software update for 1.2-litre engine cars, including the popular Polo, enabled them to cheat emissions tests, the newspaper said, without naming its sources. It said prosecutors were preparing charges against unnamed Volkswagen managers for suspected fraud, noting the company gave assurances in 2016 that the 1.2-litre engines did not use illegal emissions-cheating devices.

VW has had to recall hundreds of thousands of cars since it admitted in 2015 to installing illegal software in engines to cheat US anti-pollution tests.

EU New Car Registrations Fall For Third Month

New passenger car registrations in the European Union declined for a third straight month in November, the European Automobile Manufacturers Association, or ACEA, said Friday.

Demand for new cars fell 8 percent year-on-year following a 7.3 percent slump in October and a 23.5 percent plunge in September. Ahead of the introduction of the new WLTP emission test regime, car registrations jumped 31.2 percent in August.

Further, the market continued to contract in most EU countries in November, including the five biggest car markets, the ACEA said.

In the January to November period, car registrations grew 0.8 percent from a year ago.

Currency Zone

EUR/USD Intraday: consolidation.

Pivot: 1.1455

Our preference: short positions below 1.1455 with targets at 1.1405 & 1.1390 in extension.

Alternative scenario: above 1.1455 look for further upside with 1.1475 & 1.1500 as targets.

Comment: the RSI shows downside momentum.

 

USD/JPY Intraday: the upside prevails.

Pivot: 113.45

Our preference: long positions above 113.45 with targets at 114.00 & 114.20 in extension.

Alternative scenario: below 113.45 look for further downside with 113.20 & 112.95 as targets.

Comment: the RSI shows upside momentum.

 

GBP/USD Intraday: under pressure.

Pivot: 1.3160

Our preference: short positions below 1.3160 with targets at 1.3105 & 1.3070 in extension.

Alternative scenario: above 1.3160 look for further upside with 1.3200 & 1.3235 as targets.

Comment: a break below 1.3105 would trigger a drop towards 1.3070.

 

EUR/GBP Intraday: under pressure.

Pivot: 0.8725

Our preference: short positions below 0.8725 with targets at 0.8690 & 0.8670 in extension.

Alternative scenario: above 0.8725 look for further upside with 0.8745 & 0.8770 as targets.

Comment: the RSI shows downside momentum.

 

USD/ZAR intraday: rebound

Our pivot point is at 13.8400.

Our preference: rebound.

Alternative scenario: below 13.8400, expect 13.7290 and 13.6630.

Comment: the RSI is above 50. The MACD is negative and above its signal line. The MACD must break above its zero level to call for further upside. Moreover, the pair is trading above its 20 MA (13.9147) but under its 50 MA (13.9587).