News / Page 219

Asian Session – US dollar surges after strong housing data; yen down on stimulus hopes

Posted on May 20, 2015 at 7:22 am GMT

The dollar posted a strong performance today, as it rose significantly against its main rivals – the yen and the euro. Dollar / yen was challenging the 121 level; trying to break out of its recent range and making a 2-month high in the process at 121.05. The yen’s high for the year is at 122. Strong housing data out of the United States the previous day helped the dollar extend its recent recovery after it was driven to 1.1466 [..]

Technical Analysis – EURJPY reverses recent rally, bias back to downside

Posted on May 20, 2015 at 7:07 am GMT

EURJPY has fallen for a third day, forming a top at 136.94. Prices have dipped below the 23.6% retracement of the April-May rally from 126.08 to 136.94. There is scope for a deeper retracement towards the 38.2% Fibonacci at 132.79. A break below the 50% Fibonacci of 131.50 will bring the bearish trend back. A move below the Ichimoku cloud would confirm that that recent rally from 126.08 was a corrective move of the longer term downtrend from 149.76 (December [..]

European Session – Euro falls sharply to one-week low as ECB steps up QE, dollar surges on robust housing numbers

Posted on May 19, 2015 at 1:50 pm GMT

The euro tumbled below $1.12 for the first time in a week early in European session trading in reaction to comments by ECB policymaker Benoit Coeure who said the Bank will adjust its bond buying program. Basically the Bank will step up QE in May and June in order to deal with the low market liquidity during the summer.The euro tumbled more than 1% to a low of 1.1121. Meanwhile, concerns over Greece still remain and are weighing on the [..]

Technical Analysis – GBPJPY drops from 5-month highs; bullish bias weakened

Posted on May 19, 2015 at 1:35 pm GMT

GBPJPY dropped sharply by almost 1% today to 186.17 bringing a pause to the strong rally that began on April 14. Today’s fall takes it closer to the 23.6% Fibonacci retracement level of the upleg from the April 14 low of 174.86 to the May 15 high of 188.60, which could provide the next support level at 185.35. With prices firmly above the Ichimoku cloud, GBPJPY remains in bullish territory. But looking at the RSI and the stochastic oscillator, the [..]

UK inflation turns negative for first time since 1960

Posted on May 19, 2015 at 11:33 am GMT

UK consumer prices declined by 0.1% in April from a year earlier as lower transport costs continued to drag prices lower. The CPI index rose by just 0.2% on the month in April, against forecasts that it would rise by 0.4%. In March, year-on-year CPI was unchanged at 0% and expectations were that it would remain unchanged in April as well. This was the lowest figure since 1960 based on comparable estimates. Core CPI also came in lower than expected [..]

Asian Session – Euro drops as clock ticking on Greece deal

Posted on May 19, 2015 at 7:18 am GMT

The euro gave back some of its recent gains as progress in negotiations between Greece and its creditors was not seen as sufficient to clinch a deal. The Greek government is fast running out of cash and without a deal very soon and fresh funding, it will inevitably default – probably versus the IMF around the beginning of June. The euro dropped below 1.13 to 1.1280, even though there were few news that could be interpreted as dollar-positive. If anything, [..]

Technical Analysis – EURUSD off 3-month highs, more downside expected

Posted on May 19, 2015 at 7:11 am GMT

EURUSD maintains a downside bias in the near term. A top is in place at Friday’s 3-month high of 1.1466 and the pair has been falling for a second day, reaching a low of 1.1276 in early European trading on Tuesday. It has broken just below the 23.6% Fibonacci retracement level of the downleg from 1.3992 to 1.0461. A further decline below the 100-day moving average will target support at 1.1201, the May 13 low. A failure to rebound from [..]

European Session – Euro tumbles as focus shifts back to Greece, dollar gains capped by poor NAHB

Posted on May 18, 2015 at 2:34 pm GMT

The euro fell below the key $1.14 level in the European session, moving further off three-month highs due to renewed uncertainty over Greece and its ability to make its debt payments. Markets fear that Athens will not be able to make its 1.5 billion euro payment to the IMF due on June 5. As a result there was a sell-off in Eurozone bonds, especially from the periphery, leading to a rise in yields in Greek, Spanish, Portuguese and Italian bonds [..]

Recent oil price spike uncertain to hold as supply remains high

Posted on May 18, 2015 at 1:43 pm GMT

Crude oil prices have staged an impressive recovery this year as Brent Crude price has risen from the January low of $46.59 per barrel to around $66 per barrel in May. This is a jump of about 44% in the space of four months but prices remain well below the peaks above $110 per barrel seen between 2011 and 2014. Much of the fall in prices is attributed to oversupply and lower than expected demand. The US has seen a [..]

Asian Session – US dollar off lows after Friday’s data misses

Posted on May 18, 2015 at 7:22 am GMT

The US dollar managed to climb out of the hole it found itself in on Friday, following the release of yet more weak data out of the United States. The Australian dollar was weak after dovish comments from the Deputy RBA Governor while the yen failed to capitalize on some stronger-than-expected machinery orders. Starting with the US dollar, it remained under pressure as the recent run of weak US economic data continued last Friday. The University of Michigan preliminary consumer [..]

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