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Asian Session – Yen gains as Bank of Japan keeps policy steady

Posted on April 8, 2015 at 6:53 am GMT

The yen put in a strong performance during today’s Asian trading – driving dollar / yen below the 120 level and euro / yen under the 130 mark, as the Bank of Japan decided to keep its massive stimulus program unchanged. Dollar / yen was at 119.85 and euro / yen was last quoted at 130.06. Interestingly, yen strength was coupled with a strong performance by the Japanese Nikkei 225 stock index, which climbed to its highest in 15 years [..]

Technical Analysis – USDJPY maintains range

Posted on April 8, 2015 at 6:39 am GMT

USDJPY opened on Wednesday at 120.23 and extended lower from the previous day’s high of 120.43. Immediate support is seen at the 38.2% Fibonacci retracement level of the upleg from 115.84 to 122.01. The low of December 16, 2014 at 115.55 is a critical level and a break below this would weaken the underlying long term bullish trend that has been in place since 2012. Consequently, a double top chart pattern would be completed. In the medium term, the trend [..]

European Session – Euro weakens for second day after Eurozone PMI data

Posted on April 7, 2015 at 2:07 pm GMT

European markets opened for the first time today after breaking for the Easter Holidays on Friday. The euro was weak for a second day against the dollar after Eurozone services PMI data. The final reading and the composite number for March were both revised down slightly from their flash readings. The euro tumbled to a low of 1.0833 after peaking at 1.0941 in the European session. Tomorrow the Eurogroup will meet, with Greece at the top of the agenda. Any [..]

RBA keeps rates unchanged, aussie rises 1% versus dollar

Posted on April 7, 2015 at 9:43 am GMT

On Tuesday, the Reserve Bank of Australia kept interest rates on hold at 2.25% at its April 7 meeting. The decision surprised many economists who had expected a further cut of 25 basis points. In his statement, the Governor Glenn Stevens said that “further easing of policy may be appropriate over the period ahead, in order to foster sustainable growth in demand and inflation consistent with the target”. This raises expectations that the RBA may cut rates in May. Although [..]

Asian Session – Aussie rallies after Reserve Bank chooses to stay on hold

Posted on April 7, 2015 at 7:09 am GMT

The Australian dollar was the session’s best performer, after the Reserve Bank of Australia decided to keep rates on hold at 2.25% during its meeting today. The aussie jumped more than a full cent against the US dollar from under 76 cents to briefly top 77 cents after the central bank announced that it would keep its benchmark rate unchanged. The market had largely priced in a quarter-point rate cut, although economists were roughly evenly split on the possibility. Despite [..]

Technical Analysis – GBPUSD trapped in a range, will it resume downtrend?

Posted on April 7, 2015 at 6:20 am GMT

GBPUSD remains in a range and has failed to break above the top of the range at 1.5008. To the upside, any moves higher would find resistance at 1.5163 (March 18 high) and then at 1.5236 (23.6% Fibonacci retracement level of the downleg from 1.7190 to 1.4634. The support level at 1.4634 is critical and a break below this would strengthen the downtrend that has been in progress since the July 2014 high of 1.7190. The market remains below the [..]

European Session – Euro rises above 1.10, dollar weak after ISM

Posted on April 6, 2015 at 2:52 pm GMT

European markets were closed for the Easter holiday which led to a relatively quiet session. The euro made surprising gains versus the dollar as it received from news that Greece intends to meet all obligations to all its creditors. Greek finance minister Yanis Varoufakis met with International Monetary Fund chief Christine Lagarde over the weekend and reiterated that the Greek government will not default on a 450 million IMF euro loan repayment later this week. Better-than-expected Spanish unemployment data also [..]

Weak US employment report hurts dollar

Posted on April 6, 2015 at 10:59 am GMT

The US economy added 126k jobs in March, which is less than the consensus estimate of 245k. In a sign of further weakness fpr Q1 GDP, the previous month’s figure was revised lower to 264k from the initial estimate of 295k. The job figures for January and February were revised down by a combined total of 69,000 jobs. The weaker than expected economic figures were attributed to the severe winter weather across the US in the first few months of [..]

Asian Session – US dollar contains losses in holiday-thinned trade

Posted on April 6, 2015 at 7:03 am GMT

The US dollar was struggling to regain its composure following the weaker-than-expected employment report on Friday. The dollar was trading around the 1.10 mark against the euro, whereas against the yen, the 119 handle was proving to be the focal point. Overall the dollar did not extend its losses following Friday’s disappointment, as many traders felt the currency’s long-term prospects and monetary policy divergence in favor of the US still offered advantages to the greenback compared to other majors. Non-farm payrolls [..]

Technical Analysis – EURUSD pauses downtrend and consolidates

Posted on April 6, 2015 at 6:51 am GMT

EURUSD rallied sharply on Friday to 1.1026 from 1.0876 on the back of weak US nonfarm payrolls. The pair is now consolidating these gains. The intraday bias remains neutral as the pair has been trading in a range between 1.0712 and 1.1051 since mid-March. Any upside moves should be limited by 1.1051 and to the downside support is seen at 1.0712. The multi-year low of 1.0461 is as critical support level and a break below this would strengthen the overall [..]

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