The Analytical Overview of the Main Currency Pairs on 2020.02.03

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.10317
  • Open: 1.10940
  • % chg. over the last day: +0.56
  • Day’s range: 1.10802 – 1.10940
  • 52 wk range: 1.0879 – 1.1572

On Friday, January 31, there were aggressive purchases on EUR/USD currency pair. The trading instrument set new local highs. The coronavirus outbreak in China continues to be in the focus of attention of financial markets participants. We recommend you to monitor the current information on this issue. At the moment EUR/USD quotes are consolidating in the range of 1.10700-1.11000. The single currency has potential for further growth. We expect the publication of important economic reports. Open positions from key levels.

The Economic News Feed for 03.02.2020:

  • – Business Activity Index in the German manufacturing sector – 10:55 (GMT+2:00);
  • – ISM Manufacturing Index for the USA – 17:00 (GMT+2:00).;
EUR/USD

The indicators signal the strength of buyers: the price has fixed above 50 MA and 100 MA.

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy EUR/USD.

The Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates a bullish sentiment.

Trading recommendations
  • Support levels: 1.10700, 1.10400, 1.10200
  • Resistance levels: 1.11000, 1.11200, 1.11500

If the price fixes above 1.11000, expect the quotes to grow toward 1.11200-1.11500.

Alternatively, the quotes could descend toward 1.10500-1.10300.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.30856
  • Open: 1.31703
  • % chg. over the last day: +0.81
  • Day’s range: 1.31528 – 1.31836
  • 52 wk range: 1.1959 – 1.3516

GBP/USD quotes show a strongly pronounced upward trend. Sterling has overcome and strengthened above the key extremums. At the moment, the trading instrument is consolidating. Local support and resistance levels are at 1.31400 and 1.31800, respectively. The GBP/USD currency pair has potential for further growth. This week will introduce a number of important indicators of business activity in the UK. Open positions from key levels.

The Economic News Feed for 03.02.2020:

  • – UK Manufacturing Activity Index – 11:30 (GMT+2:00).
GBP/USD

The indicators signal the strength of buyers: the price has fixed above 50 MA and 100 MA.

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy GBP/USD.

The Stochastic Oscillator is located near the oversold area, the %K line crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.31400, 1.31000, 1.30750
  • Resistance levels: 1.31800, 1.32100

If the price fixes above 1.31800, expect further growth toward 1.32100-1.32400.

Alternatively, the quotes could descend toward 1.31000.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.32042
  • Open: 1.32360
  • % chg. over the last day: +0.20
  • Day’s range: 1.32358 – 1.32498
  • 52 wk range: 1.2949 – 1.3566

A bullish sentiment still dominates the USD/CAD. The trading instrument has updated local highs again. Currently, the CAD is consolidating in the range of 1.32200-1.32500. Technical correction of USD/CAD quotes after the prolonged rally is not excluded in the nearest future. We recommend you to pay attention to the dynamics of oil prices. Open positions from key levels.

The news background on the Canadian economy is calm.

USD/CAD

The indicators signal the strength of buyers: the price has fixed above 50 MA and 100 MA.

Histogram of MACD is in the positive zone, which indicates a bullish sentiment.

The Stochastic Oscillator is in the neutral zone, the %K line crosses the %D line. No signals at the moment.

Trading recommendations
  • Support levels: 1.32200, 1.31900, 1.31550
  • Resistance levels: 1.32500, 1.32800

If the price fixes above 1.32500, expect the quotes to grow toward 1.32800-1.33000.

Alternatively, the quotes could correct toward 1.31900-1.31700.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 108.977
  • Open: 108.450
  • % chg. over the last day: -0.53
  • Day’s range: 108.307 – 108.626
  • 52 wk range: 104.45 – 113.53

The USD/JPY currency pair has moved down after a prolonged consolidation. The trading instrument broke through the key lows. Currently, USD/JPY is consolidating in the range 108.300-108.600. Demand for save haven currencies remains at a high level. We do not rule out further growth of the yen against the US dollar. Today we recommend you to pay attention to the US economy news background. Open positions from key levels.

The publication of important economic reports from Japan is not planned.

USD/JPY

The indicators signal the sellers’ strength: the price has fixed below 50 MA and 100 MA.

The MACD histogram is in the negative zone, which indicates a bearish sentiment.

The Stochastic Oscillator is in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 108.300, 108.000
  • Resistance levels: 108.600, 108.800, 109.100

If the price fixes below 108.300, USD/JPY quotes are expected to fall further. Potential movement towards 108.000-107.800.

Alternatively, the quotes could grow to 109.000-109.200.

by JustForex

Investors Assess the Risks of Further Spread of Coronavirus from China

by JustForex

On Friday, the US dollar weakened significantly against a basket of major currencies. The dollar index (#DX) closed in the red zone (-0.52%). Markets are under pressure due to the spread of the Chinese coronavirus. Investors continue to monitor the global economic impact of the virus spread, which overshadows the profitable season.

Chinese markets have opened after the New Year holidays, which were extended by 10 days due to an outbreak of coronavirus. The start of trading was marked by the expected collapse of the indices on average by 8%. This is the biggest drop in Chinese indices since 2015. Chaos is happening on the Chinese exchanges, many stocks are collapsing. During the current trading week, a number of important indicators on economic activity in the Eurozone, the UK and the US will be published. Investors will also assess the US labor market report for January.

The “black gold” prices are declining. Currently, futures for the WTI crude oil are testing the $51.70 mark per barrel.

Market Indicators

On Friday, there were aggressive sales in the US stock market: #SPY (-1.82%), #DIA (-2.12%), #QQQ (-1.59%).

The 10-year US government bonds yield fell again. At the moment, the indicator is at the level of 1.53-1.54%.

The Economic News Feed for 03.02.2020:
  • – German manufacturing PMI at 10:55 (GMT+2:00);
  • – Manufacturing PMI in the UK at 11:30 (GMT+2:00);
  • – ISM manufacturing PMI at 17:00 (GMT+2:00).

We also recommend paying attention to the speech by the ECB President.

by JustForex

Will the DAX bulls hold the German index above 13,000 points?

By Admiral Markets

Source: Economic Events February 3, 2020 – Admiral Markets’ Forex Calendar

The DAX30 CFD has seen a weak weekly close driven by the latest news and developments on the Coronavirus. The resulting risk-off among market participants directs out focus onto the psychologically relevant level of 13,000 points.

Technically, the DAX developed a sequence of falling highs and lows after breaking below the import region of support on the Hourly chart around 13,380/400 points on Monday of last week.

After failing to recapture this region last Wednesday/Thursday after the Fed and despite market participants expecting a dovish Fed, allowing speculations to rise that the central bank will cut rates at least once in 2020 by 25 basis points with a likelihood of over 80%, gives the weak weekly close a clear sign of weakness.

If we get to see a sustainable drop below 13,000 points, the daily trend support around 12,900 points will get our attention.

A drop below that level darkens the technical picture further, then making a test of the SMA(200) and thus further losses down to min 12,500 points a possibility.

If bulls, on the other hand, regain control, a push back above 13,300 points brightens the picture again, switching the technical mode from bearish to at least neutral:

Source: Admiral Markets MT5 with MT5-SE Add-on DAX30 CFD Hourly chart (between January 14, 2019, to January 31, 2020). Accessed: January 31, 2020, at 10:00pm GMT

Source: Admiral Markets MT5 with MT5-SE Add-on DAX30 CFD Daily chart (between October 19, 2018, to January 31, 2020). Accessed: January 31, 2020, at 10:00pm GMT – Please note: Past performance is not a reliable indicator of future results, or future performance.

In 2015, the value of the DAX30 CFD increased by 9.56%, in 2016, it increased by 6.87%, in 2017, it increased by 12.51%, in 2018, it fell by 18.26%, in 2019, it increased by 26.44% meaning that after five years, it was up by 34.2%.

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By Admiral Markets

Oil & Gas Services Company Upgraded to Buy

The Energy Report

Source: Streetwise Reports   01/30/2020

The reasons behind the changed rating and expectations for the firm’s Q4/19 are presented in an iA Securities report.

In a Jan. 27 research note, analyst Elias Foscolos reported that iA Securities upgraded its rating on Pason Systems Inc. (PSI:TSX) to Buy from Hold “as upside has improved and U.S. drilling likely bottomed.”

Foscolos previewed Q4/19 for the Calgary-based the oil and gas services company that provides “specialized data management systems for drilling rigs.”

He wrote that iA Securities expects Pason Systems’ Q4/19 revenue to be down 11% quarter over quarter (QOQ) due to an 11% drop in rig counts to an average of 798 in the U.S. during that period. However, stability in Canada and a projected increase internationally should somewhat offset the lower revenue. The $30 million of EBITDA that iA Securities projects for Pason in Q4/19 is in line with consensus’ estimate.

Foscolos noted that drilling in the U.S. has reached a nadir, and independent companies are feeling the brunt of it more than the majors. “As U.S. net oil production changes approach zero, a level of drilling will be reached where majors are at least drilling enough to replace aging production,” he added.

The analyst highlighted that Pason warrants a higher valuation than its peers due to its “premium fundamentals,” which include about $150 million of net cash, a capex-light business, robust cash flow and a mid-double digit return on equity.

Looking forward, iA Securities projected lowered EBITDA in Q4/19 and 2020, respectively, of 6% QOQ and 5% year over year. “Despite these headwinds, we project ~$20M in quarterly run-rate
funds flow from operations (FFO), and the Company has a clean balance sheet and other favorable fundamentals relative to peers,” the analyst wrote.

Accordingly, the financial firm maintained its CA$16.15 per share target price on Pason Systems, whose stock is currently trading at around CA$13.19 per share.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from iA Securities, Pason Systems Inc., Quarterly Preview, January 27, 2020

Conflicts of Interest: The research analyst and or associates who prepared this report are compensated based upon (among other factors) the overall profitability of iA Securities, which may include the profitability of investment banking and related services. In the normal course of its business, iA Securities may provide financial advisory services for the issuers mentioned in this report. iA Securities may buy from or sell to customers the securities of issuers mentioned in this report on a principal basis.

Analyst’s Certification: Each iA Securities research analyst whose name appears on the front page of this research report hereby certifies that (i) the recommendations and opinions expressed in the research report accurately reflect the research analyst’s personal views about the issuer and securities that are the subject of this report and all other companies and securities mentioned in this report that are covered by such research analyst and (ii) no part of the research analyst’s compensation was, is, or will be directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.

Analyst Trading: iA Securities permits analysts to own and trade in the securities and or the derivatives of the issuer under their research coverage, subject to the following restrictions. No trades can be executed in anticipation of coverage for a period of 30 days prior to the issuance of the report and 5 days after the dissemination of the report to our clients. For a change in recommendation, no trading is allowed for a period of 24 hours after the dissemination of such information to our clients. A transaction against an analyst’s recommendation can only be executed for a reason unrelated to the outlook of the stock for the issuer and with the prior approval of the Director of Research and the Chief Compliance Officer.

Company Related Disclosures:

–The analyst has visited the issuer’s operations. No payment or reimbursement was received from the issuer for the associated travel costs.

( Companies Mentioned: PSI:TSX,
)

Chinese stocks in freefall after traders return from Lunar New Year Holiday

By Hussein Sayed, Chief Market Strategist (Gulf & MENA), ForexTime

China’s CSI 300 index plunged by more than 8% as trading resumed on Monday, the worst opening in nearly 13 years after financial markets reopened after the Lunar New Year holiday. This comes despite the central bank’s announcement it would provide $171bn in additional liquidity to money markets and took further steps to lower its reverse repo rates, in efforts to contain the sell-off.

Such actions by the central bank seem to have had minimal effect on investors’ behaviour. The real concern now is that China’s growth will be heavily impacted by the deadly coronavirus outbreak. With the number of deaths in mainland China overtaking the 2003 SARS epidemic and the number of cases infected reaching more than 17,000, it is unknown when this epidemic will come to an end.

Economists are now expecting growth to fall below 5% in the first quarter of 2020, but the question is how quickly the economy will rebound once the outbreak is under control. China’s GDP growth dipped from 11.1% to 9.1% in the second quarter of 2003 after the SARS outbreak. But it recovered quickly to 10% in the following quarter. However, it’s very difficult to compare the current situation to 17 years ago due to a number of reasons. First, we still don’t know when the outbreak will be officially under control. Second, China represented less than 5% of global output in 2003, whereas this now stands at 17%. Third, the service industry in China makes a greater contribution to the country’s growth compared with 2003.

The sell-off in China’s market today, despite looking ugly, is only a catch-up following the tumble in global equities over the past several days. This means investors will not react on today’s news, with S&P futures holding steady at the time of writing.

However, as mentioned in my previous report, investors who are looking to buy the dips should wait for signs of a peak in the rate of virus infections, and we are not there yet.

Crude oil requires intervention to put a floor on prices

After losing 12% last month, Brent prices continued to remain under pressure. China’s demand for oil is expected to have dropped by three million barrels a day, which is 1.3 million barrels more than OPEC’s combined output cuts. Add to this a global cancelation of airline flights to China and you get an extremely oversupplied market.

The OPEC+ Joint Technical Committee has scheduled a meeting on Feb 4-5 to evaluate the impact of recent developments on Oil demand. The market needs assurances that the supply/demand equation remains in balance for prices to hit a floor. This suggests a commitment from OPEC not just to extend oil supply cuts, but even implement deeper ones beyond March. Without such assurances, expect to see further declines in Brent with the only major support now seen at the December 2018 lows of $49.93.

A busy week ahead

While investors continue to monitor updates on the coronavirus closely, there’re a lot of market-moving events. The earnings season remains busy with 96 S&P 500 companies due to announce their quarterly results this week. Alphabet, Twitter, Walt Disney, General Motors and Ford are among the most-watched companies.

Currency traders have a busy economic calendar, which includes manufacturing and services PMI’s from Europe and the US, and China will release its export and import figures on Friday. But for USD traders, all eyes will be on Friday’s non-farm payrolls report that could lead to big moves in currencies.

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.

 


Forex-Time-LogoArticle by ForexTime

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Week Ahead: Safe havens supported by persistent coronavirus concerns

By Han Tan, Market Analyst, ForexTime – The risk-off theme is set to continue this week, a notion highlighted by the nine percent drop in Chinese stocks today after returning from an extended break, with the death toll from the coronavirus outbreak now surpassing 360 and over 17,000 confirmed cases reported in China.

Beyond the expected bouts of volatility and selloff from risk assets over the near-term, investors will also be looking for confirmation from the hard economic data pertaining to the impact from the ongoing outbreak. Until the virus’ spread shows signs of stabilizing, such a risk-averse environment should ensure that safe haven assets remain supported in the interim, with Gold carving a path towards the psychological $1600 level.

 

US economic data may aid Dollar recovery

The Dollar index is attempting to bounce back from sub-97.2 levels after the negative surprise in the MNI Chicago PMI which fell to a 4-year low. Investors will be eyeing key economic indicators out of the US this week in order to ascertain whether another run towards the 98.0 psychological level is warranted for the Dollar index. Look out for January’s ISM Manufacturing Index (due Monday, Feb 3) and also the non-farm payrolls (due Friday, Feb 7); better-than-expected readings there should serve as a platform for more Greenback gains.

 

Disney’s earnings may be dampened by coronavirus woes

The US earnings season will roll along, with Disney set to report its latest quarterly results on Tuesday. With the entertainment giant’s shares having fallen by nearly 10 percent since its record high on November 26, Disney may struggle to emulate such heights again in the near-term.

Investors will be aware of the downside risks posed by the coronavirus outbreak, which is expected to hit Disney’s earnings in China for the current quarter. Shanghai Disneyland has been closed temporarily and many movie theatres across the country have been shut down amid efforts to contain the virus’ spread. If investors can look past the coronavirus’ potential impact on Disney’s earnings, and focus on the company’s other initiatives, such as its streaming services, that could mitigate the stock’s downside over the near-term.

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.

 


Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

This week in monetary policy: Dominican Rep., Kazakhstan, Honduras, Australia, Thailand, Iceland, Poland, Albania, Brazil, India, Philippines, Czech Rep., Russia & Romania

By CentralBankNews.info

    This week – February 2 through February 8 – central banks from 14 countries or jurisdictions are scheduled to decide on monetary policy: Dominican Republic, Kazakhstan, Honduras, Australia, Thailand, Iceland, Poland, Albania, Brazil, India, Philippines, Czech Republic, Russia and Romania.
    Following table includes the name of the country, the date of the next policy decision, the current policy rate, the result of the last policy decision, the change in the policy rate year to date, and the rate one year ago.
    The table is updated when the latest decisions are announced and can always accessed by clicking on This Week.
WEEK 6
FEB 2 – FEB 8, 2020:
DOMINICAN REP.3-Feb4.50%005.50%         FM
KAZAKHSTAN3-Feb9.25%009.25%         FM
HONDURAS3-Feb5.75%005.75%
AUSTRALIA4-Feb0.75%001.50%         DM
THAILAND5-Feb1.25%001.75%         EM
ICELAND5-Feb3.25%004.50%
POLAND5-Feb1.50%001.50%         EM
ALBANIA5-Feb1.00%001.00%
BRAZIL5-Feb4.50%006.50%         EM
INDIA6-Feb5.15%006.50%         EM
PHILIPPINES6-Feb4.00%004.75%         EM
CZECH REP.6-Feb2.00%001.75%         EM
RUSSIA7-Feb6.25%007.75%         EM
ROMANIA7-Feb2.50%002.50%         FM

 

Arcadia Ropes in $3 Million in GoodHemp Seed Purchase Orders Within 50 Days of Product Launch

By The Life Science Report

Source: Streetwise Reports   01/30/2020

Arcadia Biosciences shares traded 25% higher after reporting that it secured $3 million in pre-season GoodHemp seed purchase commitments in just 50 days after launching the product.

Arcadia Biosciences Inc. (RKDA:NASDAQ), which employs science-based approaches to enhancing the quality and nutritional value of crops and food ingredients, today announced in a letter to shareholders that “the company has secured in excess of $3 million in initial seed purchase commitments in just 50 days post launch of its newest product line: GoodHemp.”

The company explained that GoodHemp is the firm’s new commercial brand for delivering genetically superior hemp seeds, transplants, flower and extracts. The GoodHemp line’s first commercial product, which Arcadia showcased at the American Seed Trade Association CSS & Seed Expo in Chicago in early December 2019, is a “disease resistant, USDA-compliant ultra-low tetrahydrocannabinol (THC) hemp seed.”

The company’s Chief Commercial Officer (CCO) Sarah Reiter commented, “Our new GoodHemp seed catalog has been met with enthusiasm from growers seeking compliant, reliable hemp seeds…Since our launch last month, we’ve received a significant number of inquiries, reflecting a strong market demand for quality genetics from a reputable seed provider. We can already see that Arcadia’s 15+ years of proven results in crop improvement is highly valued by growers…We are fielding strong interest in our seeds and expect purchase commitments to continue over the next few months as farmers focus on securing quality genetics for their upcoming spring plantings.”

The firm noted that revenues from these purchase commitments will be recognized upon delivery of seeds to the growers, which is anticipated to occur between Q2/20 and Q4/20. The company stated that these initial sales and future additional commitments will contribute meaningfully to the greater than $10 million total revenues previously forecasted for FY/20.

The company indicated that “GoodHemp’s 2020 offering has expanded from the five new seed varieties previously announced during the GoodHemp launch. The company now offers ten varieties primarily focused on compliant cannabidiol (CBD) production, one of the biggest challenges facing U.S. growers in light of the USDA’s new guidelines mandating that states test and dispose of “hot” crops that exceed 0.3 percent THC.”

CCO Reiter added, “We work closely with our community of U.S. farmers to understand the very specific challenges of growing hemp in different geographies, climates and regulatory environments in order to develop and deliver solutions that support crop productivity and profitability…Our USDA-compliant Complia Bot+ seed variety is just the beginning of what we expect will be a robust and innovative seed portfolio designed to modernize the commercial hemp germplasm market.”

Arcadia is headquartered in Davis, Calif., and states that it innovates crops to provide high-value, healthy food ingredients to help meet consumer demand for a healthier diet. The firm has developed a portfolio of agronomic traits that it states enables farmers around the world to be more productive amidst challenging economic conditions and minimize the impact of agriculture on the environment. In addition to GoodHemp, the company markets a line of GoodWheat™ branded ingredients.

Arcadia Biosciences started the day with a market capitalization of around $41.9 million with approximately 8.65 million shares outstanding and a short interest of about 8.6%. RKDA shares opened relatively unchanged today at $4.86 (+$0.01, +0.21%) over yesterday’s $4.85 closing price. The stock has since traded higher between $4.86 and $6.48 per share today and at present is trading at $5.62 (+$0.77, +15.88%).

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Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.

( Companies Mentioned: RKDA:NASDAQ,
)

Colombia maintains rate, forecast of 3.3% growth in 2020

By CentralBankNews.info
Colombia’s central bank left its benchmark interest rate steady, as expected, saying inflation is expected to resume converging to its target while it’s staff confirmed its estimate of 2019 economic growth of 3.2 percent and its forecast for 2020 growth of 3.3 percent.
The Central Bank of Colombia (CBC), which has maintained its rate since April 2018, said its board was unanimous in its decision and would carefully monitor inflation, economic activity, the balance of payments and external situation, in particular “the economic effects of the recent declaration of an international health emergency.”
Colombia’s inflation rate declined slightly to 3.8 percent in December as supply shocks continue to fade, with inflation expected to resume moving toward CBC’s target of 3.0 percent, plus/minus 1 percentage point.
Colombia’s inflation rate accelerated during the first half of 2019 due to higher food prices and a sharp drop in the peso in the first 9 months of the year.
After bouncing back in December, the peso weakened again this month to trade at 3,419.8 to the U.S. dollar today, down 4 percent this year.

The Central Bank of Colombia issued the following statement:

 

“The Board of Directors of Banco de la República unanimously decided to maintain the Benchmark Interest Rate at 4.25%

In this decision, the Board took into consideration primarily the following information:
  • In December, annual inflation (3.8%) reduced slightly. The supply shocks that have affected inflation are expected to continue fading, and inflation is expected to resume its convergence to the target, as market expectations are reflecting.  Core inflation indicators are close to 3.0%.
  • With the new information on economic activity, the Central Bank’s technical staff maintained its estimate for economic growth in 2019 at 3.2%, and its forecast for 2020 at 3.3%.
  • Global growth prospects are moderate; in the United States, the Fed maintained its reference interest rate unaltered.
  • The projection of the current account deficit for 2019 remains above 4.0% of GDP, and continues to be funded mostly by foreign direct investment.
Based on this information, the Board considered the following factors for its decision:
  • The temporary deviations of inflation from the target, uncertainty about the persistence of depreciation of the peso, and its degree of pass-through to domestic prices.
  • The size of the spare capacity and the pace at which it will reduce.
  • The effects of changing external conditions on the Colombian economy.
In this environment, upon assessing the situation of the economy and the risk balance, the Board unanimously decided to maintain the benchmark interest rate unaltered at 4.25%
The Board will continue to carefully monitor inflation and the forecasts of economic activity, as well as the evolution of the balance of payments and the external situation, including, particularly, the economic effects of the recent declaration of international health emergency. Finally, the Board reiterates that monetary policy will continue to depend on the new information available.”

 

Accuray Shares Rise on Q2 Earnings, Increased Backlog and Raised FY/20 EBITDA Guidance

By The Life Science Report

Source: Streetwise Reports   01/29/2020

Shares of Accuray traded 15% higher today after the company reported Q2/20 financial results.

Late yesterday afternoon, radiation oncology company Accuray Inc. (ARAY:NASDAQ), which develops, manufactures and markets radiotherapy systems used in cancer treatments, announced financial results for the second quarter of fiscal year 2020 ended December 31, 2019.

The company reported that gross orders totaled $98.6 million in Q2/20 including 11 orders from China, compared to $100.2 million in Q2/19. The firm indicated that its backlog grew by 12% as of December 31, 2019, to $539.4 million, compared to $482.2 million as of December 31, 20018.

Though gross orders declined, the company advised that net orders in Q2/20 increased by 30% year-over-year to $89.9 million. During the same period, operating expenses decreased by 13% to $34.3 million, compared to $39.2 million in Q2/19.

The firm indicated net income of $10.7 million, or $0.12 per share in Q2/20, compared to a net loss of $4.6 million, or ($0.05) per share for Q2/19. The company stated, “Net income included a non-cash, special gain of $13.0 million related to the value of its capital contribution to the China joint venture in exchange for the company’s 49% equity interest in the joint venture.”

Joshua H. Levine, president and CEO of Accuray, commented, “Financial and operational results for our second fiscal quarter and for the first half of fiscal year 2020 were solid…Gross orders for the second quarter exceeded our internal expectations heading into the quarter, including a solid order contribution from China. We expect revenue growth to improve in the second half of fiscal 2020 as we believe revenue recognition of China Type A systems will start in our fourth fiscal quarter. In addition, we have confirmed that the tariff exemption for medical linear accelerators is applicable to all of our systems. We believe that this exemption will support our commercial momentum and expand access to our innovative radiation therapy solutions for hospitals and patients in China. In light of recent events with the coronavirus outbreak in China, we do not believe that the outbreak affects the longer-term demand outlook for radiotherapy equipment in China. China remains the world’s fastest growing market for radiation oncology systems where we have a highly differentiated strategy to drive significant revenue growth in the coming years.”

The company reaffirmed its FY/20 revenue guidance and updated its adjusted FY/20 EBITDA guidance. Total revenue for FY/20 is expected to range between $410 and $420 million, and EBITDA for FY/20 is now expected to range between $21 and $26 million, up from the previously estimated range of $19-24 million.

Accuray, headquartered in Sunnyvale, Calif., is a developer, manufacturer and seller of personalized radiotherapy systems that says it makes cancer treatments more effective, shorter and safer. The company’s radiation treatment delivery systems work in conjunction with fully integrated software solutions and cover the full range of radiation therapy and radiosurgery procedures. The firm’s products include the CyberKnife precision robotic systems, the TomoTherapy radiation therapy systems and the Radixact delivery treatment platform.

Accuray has a market capitalization of around $335 million with approximately 89 million outstanding shares. ARAY shares opened higher today at $4.40 (+$0.63, +16.71%) over yesterday’s $3.77 closing price. The stock has traded today between $4.26 and $4.68 per share and is currently trading at $4.30 (+$0.53, +14.06%).

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