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Asian Session –Dollar/yen under pressure after Japan PM comments

Posted on April 6, 2016 at 8:03 am GMT

The yen rose sharply on Tuesday as risk aversion set in and comments from the Japanese prime minister added further support to the currency. Speaking to the Wall Street Journal, Prime Minister Shinzo Abe said he was against “arbitrary intervention” of devaluing currencies “whatever the circumstances”. The dollar touched a near 18-month low of 109.94 yen after the comments yesterday but had recovered slightly to 110.35 yen in Wednesday’s Asian session. The euro and the pound were also under pressure [..]

Technical Analysis – EURGBP bullish after breaching 0.80

Posted on April 6, 2016 at 7:06 am GMT

EURGBP closed above the key 0.80 level on Tuesday and reached an intra-day high of 0.8053 – the highest level since September 2014. This September high at 0.8064 is an important resistance level which if breached, will propel prices higher. A move above 0.8100 would be a strong confirmation of the recent uptrend that started from 0.6981. The outlook is bullish since the market is above the moving averages. On the long term chart, the technicals are bullish. MACD is [..]

European Session – Yen outperforms in risk-off markets

Posted on April 5, 2016 at 3:05 pm GMT

The yen outperformed today due to risk aversion stemming from global growth concerns, which lifted the currency to a fresh seventeen-month high against the US dollar. Gold benefitted from safe-haven demand as well. IMF Chief Christine Lagarde highlighted risks to global growth in a speech delivered in Frankfurt today. The dollar/yen pair dropped to 110.25 yen, the lowest since the Bank of Japan eased monetary policy in October 2014. Meanwhile, a weaker dollar due to expectations of fewer Fed rate [..]

Will the Australian dollar extend its impressive 2016 run?

Posted on April 5, 2016 at 2:59 pm GMT

Following its climb to 8-month highs versus the US dollar, the Australian dollar has retreated somewhat; posting a particularly sharp drop after today’s RBA meeting. Specifically, the aussie has fallen from the 0.7772 high to 0.7510 in less than a week. The aussie had traded as low as 0.6826 during the first half of January. Looking at the charts, the aussie’s move looks like a normal reaction from overbought levels following a rapid move higher and the currency still lies [..]

Quarterly Market Review – Q1 2016

Posted on April 5, 2016 at 2:31 pm GMT

The first three months of 2016 saw the unwelcome return of the turbulence that had marred financial markets in the summer of 2015. Equity indices across the globe saw sharp losses accompanied by high volatility. Major currencies were also exposed to unusual fluctuations as safe-haven currencies were back in demand. It was also a busy quarter for central bank activity, particularly from the European Central Bank and the Bank of Japan. But it was the changing tone of the Fed [..]

RBA holds rate at 2 percent for 10th month, aussie briefly rises above 0.76

Posted on April 5, 2016 at 9:56 am GMT

The Australian dollar surged after the Reserve Bank of Australia’s announcement that it held interest rates unchanged, resulting in the currency to briefly rise above the key 76 US cent level. After hitting a high of $0.7630 against the US dollar, the aussie fell back down to $0.7544 by mid-European session trading. It was widely expected that the RBA would leave its benchmark interest rate unchanged at 2% (for a 10th consecutive month). However, some economists believe that there is [..]

Asian Session – Aussie jumps after RBA keeps rates steady; Dollar/yen at fresh 17-month low

Posted on April 5, 2016 at 8:10 am GMT

The Reserve Bank of Australia kept its cash rate unchanged at 2.0% for the 10th straight policy meeting today as was widely expected. However, the Australian dollar jumped immediately after the announcement as the accompanying statement did not signal another cut anytime soon despite keeping the door open for such a move. RBA Governor Glenn Stevens said in his statement that “there were reasonable prospects for continued growth in the economy” but “an appreciating exchange rate could complicate the adjustment [..]

Technical Analysis – USDJPY downside risk after drop below 111.00

Posted on April 5, 2016 at 7:14 am GMT

USDJPY fell to its lowest level since October 2014 on Tuesday to touch 110.50. After trading in a broad range since early February, prices broke below the key 111.00 level. The market is testing a key long term Fibonacci level at 110.40. This is the 61.8% retracement of the upleg from 100.81 to 125.84 (May 2014 to May 2015 rise). If this level fails to support prices, and there is a break below the key 110.00 level, there is scope [..]

European Session – Euro and pound rebound versus dollar on dovish Fed expectations

Posted on April 4, 2016 at 2:37 pm GMT

The euro and the pound managed to advance against the dollar during today’s European session as the single currency pushed above the 1.14 mark towards the 5 ½ month high of 1.1438 registered on Friday. The euro’s gains came amidst data that was on the disappointing side as the Eurozone Sentix investor sentiment index for April came in below expectations and producer prices showed worse-than-expected deflation during February. Unemployment for February met estimates by coming in at 10.3%, although January’s [..]

Asian Session – Yen gains despite positive risk mood

Posted on April 4, 2016 at 8:00 am GMT

The Japanese yen seemed to be the main beneficiary of today’s Asian session, as traders were still adjusting to Fed Chair Janet Yellen’s message that caution was required in raising interest rates higher than their present 0.50% in the United States. Friday’s strong employment report was insufficient at this point to sway the Fed to change its mind, according to the prevailing market view. Yellen’s remarks continued to weigh on the US dollar, which traded near a 15-month low versus the Japanese [..]

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