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Asian Session – US dollar continues to correct on worries about timing of Fed tightening

Posted on March 23, 2015 at 7:15 am GMT

The US dollar remained weak during Monday’s Asian trading, as euro / dollar was trading above the 1.08 mark (at 1.0810) and dollar / yen dropped below 120 to around 119.85. There were still worries that the Fed would take a more relaxed approach to monetary tightening, which reduced the greenback’s allure. This was the result of Wednesday’s Fed meeting, during which the Fed downgraded its forecasts for inflation and economic growth, while also pointing out the negative effects of [..]

European Session – Weaker dollar lifts euro to test 1.08, loonie stronger after Canadian CPI data

Posted on March 20, 2015 at 3:16 pm GMT

The dollar was weak across the board today, allowing the euro to have its best weekly performance in more than two years. The Federal Reserve was the main driver of the greenback’s weakness, after a dovish policy statement on Wednesday which signaled that interest rates will rise later than sooner. The dollar attempted to recover on Thursday after the biggest one-day sell-off since 2008 on Wednesday but the recovery did not hold. The euro was able to rally to 1.0820 [..]

Forex News – Week Ahead – US GDP and inflation in focus next week

Posted on March 20, 2015 at 1:51 pm GMT

The bulk of next week’s data releases come from the United States. Final fourth quarter GDP data are due on Friday. The initial Q4 estimate of 2.6% was revised lower to 2.2% in the second reading. This was a disappointing pace of growth compared to the third quarter’s 5.0% rate. If there are significant revisions to give a lower final Q4 reading, this could affect the timing of the first Fed rate hike. Last Wednesday’s FOMC statement and Fed Chair [..]

Asian Session – Dollar eases; tries to find post-Fed equilibrium

Posted on March 20, 2015 at 8:00 am GMT

The US dollar eased somewhat but was still at a safe distance from the post-Fed meeting lows, with traders still favoring the greenback in the medium-term as their preferred currency due to expectations of an interest rate hike in the US later in the year. In bond markets, the dollar received some support after US 10-year yields recovered from a dip to as low as 1.89% the previous day to trade around 1.95% during today’s Asian trading. 10-year yields were [..]

Technical Analysis – USDJPY rebounds, critical resistance at lies ahead

Posted on March 20, 2015 at 7:29 am GMT

USDJPY has scope for further gains after failing to close below the key 120.00 level in over 2 weeks. After a big dip to 119.27 on Wednesday, the pair rebounded and opened at 120.78 today. RSI is above 50 so this is a bullish sign. Also the market remains above the Ichimoku cloud. In the medium-term some consolidation is expected as the tenkan-sen and kijun-sen have paused their upside move. Resistance is seen at the March 3rd high of 122.01 [..]

European Session – Dollar recovers post-Fed losses, Swiss franc firm after SNB

Posted on March 19, 2015 at 3:16 pm GMT

The US dollar rebounded after making heavy losses on Wednesday following a dovish Federal Reserve that signaled an interest rate hike could come later rather than sooner. The dollar sold-off after a lowering of the projected Fed Funds rate. The projection for 2015 was cut to 0.625% compared to 1.125% in December’s estimate. The dollar bounced off the post-FOMC low of 119.27 yen to peak at 120.97 today. The greenback’s rally paused after US initial jobless claims rose slightly by [..]

Forex News – Fed more dovish on US economy changes rate hike expectations

Posted on March 19, 2015 at 11:17 am GMT

(Source: Thomson Reuters: 10-Year US Treasury Yields) The Federal Reserve gave a clear indication to markets on Wednesday that it is not a matter of “if” but “when” it would begin raising interest rates. The word “patient” was removed from the statement from the Federal Open Market Committee (FOMC) but this did not meant the US dollar reacted positively to this news. In fact the greenback plunged during the release of the statement as well as during Fed Chair Janet [..]

Asian Session – US dollar bounces back following post-Fed crash

Posted on March 19, 2015 at 8:00 am GMT

The US dollar rebounded somewhat from its post-Yellen crash, as the Fed appeared more dovish than expected following its 2-day meeting. The euro briefly climbed above the 1.10 level before coming back to 1.0711 in volatile trading. It was the biggest single-day jump in the euro / dollar exchange rate for the past 15 years. The dollar was also briefly pushed below 120 against the yen before rebounding to around 120.65. The outcome of the Fed’s meeting and the market [..]

Technical Analysis – GBPUSD bottoms at 57-month low, bearish bias remains

Posted on March 19, 2015 at 7:49 am GMT

GBPUSD touched a 57-month low of 1.4634 on Wednesday but bounced on the same day to a high of 1.5163. For now there is short-term bottoming at 1.4634. The underlying trend is bearish so the recent rebound is seen as a correction. Upside is seen to be limited at 1.5551 – the February 26 high. Above this the 38.2% Fibonacci retracement of the downleg from 1.7190 to 1.4634 at 1.5610 is also a resistance level, while the Ichimoku cloud is [..]

European Session – Dollar softens ahead of FOMC risk, pound falls on BoE and jobs

Posted on March 18, 2015 at 3:13 pm GMT

The major currency pairs mostly consolidated in recent ranges during the European session but are vulnerable to the upcoming Fed events – FOMC policy announcement and Fed Chair Yellen’s press conference. Sterling was the worst performer as it fell to a near 5-year low of 1.4634 following the dovish Bank of England minutes released today which showed concern on the risks of a strong pound with respect to inflation. This concern centered on the policy divergence between the BoE and the [..]

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