News / Page 236

Forex News – Sterling near 5-year lows after poor UK wage growth data

Posted on March 18, 2015 at 11:00 am GMT

There was a mixed bag of UK employment data today but the pound plummeted nevertheless to the lowest level since June 2010. The positive side of the jobs report showed that the employment rate hit the highest on record. The Office of National Statistics said the number of Britons with jobs increased by 143,000 to 30.939 million in the three months through January. This brought up the employment rate to 73.3% which was an all-time high. The number of people claiming [..]

Asian Session – Majors in range-trading as dollar awaits Fed statement

Posted on March 18, 2015 at 8:12 am GMT

Foreign exchange markets were waiting for the statement and press conference from the all-important Federal Reserve meeting today and were therefore hesitant to push major pairs – especially dollar crosses – too far in one direction. The focus is on whether the Fed would drop its reference on being “patient” to raising interest rates, which would be a strong signal that the central bank is preparing to raise interest rates. The theme of monetary policy divergence between the United States [..]

Technical Analysis – EURUSD bounce stalls, bearish outlook strong

Posted on March 18, 2015 at 7:32 am GMT

EURUSD made a correction higher from a 12-year low of 1.0461 but found resistance at 1.0650. RSI has stalled its upside momentum and a resumption of a fall would see a retest of the 1.0461 low. There is scope to target 0.9902 (78.6% Fibonacci retracement level of the upleg from 0.8225 (2000) to 1.6038 (2008). The big picture remains bearish as the decline from the April 2014 high of 1.3992 remains in progress. The falling Ichimoku cloud also highlights the [..]

European Session – Eurozone data lift euro to week high, sterling down ahead of BoE minutes

Posted on March 17, 2015 at 2:46 pm GMT

The dollar was broadly weaker as investors remained cautious ahead of the FOMC policy decision tomorrow. The euro rose for a second day against the greenback to a new weekly high of 1.0650. Lending support to the single currency was Eurozone economic data. Employment grew by 0.1% in the Eurozone in the last quarter of 2014, while economic sentiment in the region remained high according to the ZEW survey. The German ZEW though was lower-than-expected. There was also an upside [..]

Forex News – Bank of Japan holds stimulus steady, warns of negative inflation

Posted on March 17, 2015 at 10:05 am GMT

The Bank of Japan announced today that it left its monetary policy unchanged. After concluding up a two-day policy meeting which began on Monday, the BoJ refrained from expanding its stimulus program under which it pumps 80 trillion yen into the financial system annually. The central bank’s policymakers maintained their view that Japan’s economy has “continued its moderate recovery trend.” Speaking at press conference in Tokyo following the policy announcement, BoJ Governor Haruhiko Kuroda said the following: “There’s absolutely no change [..]

Technical Analysis – AUDUSD consolidates near 6-year lows, bearish bias remains

Posted on March 17, 2015 at 8:11 am GMT

AUDUSD maintains a bearish bias in the long term but the short term bias is neutral. After falling to a near 6-year low of 0.7559 on March 11, the pair has been consolidating. To the upside the market is capped at the Feb 26 high of 0.7912. A break below the low of 0.7559 would open the path towards 0.7088. This is the 78.6% Fibonacci retracement level of the upleg from 0.6008 to 1.1078. The underlying bearish bias is highlighted [..]

Asian Session – Euro off 12-year lows, dollar weak ahead of FOMC

Posted on March 17, 2015 at 7:32 am GMT

The market’s reaction to the Bank of Japan announcing it stuck to its annual asset purchases of 80 trillion yen was limited. The focus was mainly on the BOJ Governor Haruhiko Kuroda’s news conference. Kuroda’s initial comments lifted the yen as he said that he doesn’t see financial markets overheating doesn’t see any liquidity problem in the JGB market. He sees real wage growth to expand from April. But then Kuroda mentioned that negative CPI rates are possible, and this [..]

European Session – Euro bounces off 12-year lows, dollar weakens ahead of Fed

Posted on March 16, 2015 at 3:35 pm GMT

The FOMC meeting on Wednesday is dominating the currency markets today, leading to some dollar weakness. Other central banks are also in focus this week, with policy decisions by the Bank of Japan on Tuesday and by the Swiss National Bank on Thursday. Policy meeting minutes will be released by the Reserve Bank of Australia on Tuesday and by the Bank of England on Wednesday. The market is likely going to be quiet going into the FOMC on Wednesday and [..]

Technical Analysis – USDCAD hits 6-year high, upside bias strong

Posted on March 16, 2015 at 8:18 am GMT

USD/CAD broke above the key 1.2800 level on Friday to hit a 6-year high of 1.2822. The tenkan-sen and kijun-sen lines are positively aligned, reinforcing the overall upside potential giving scope to target the 1.3000 level. To the downside 1.2350 is an important support level. A move back below this level would weaken the underlying bullish bias and bring the bears back in play. For now the bulls have the upper hand as the overall picture shows the long term [..]

Asian Session – Dollar steady as Fed rate decision in focus this week

Posted on March 16, 2015 at 7:51 am GMT

Currency markets are gearing up to the main event this week – the Federal Reserve’s interest rate decision which is due on Wednesday following a two-day meeting beginning on Tuesday by the FOMC. Investors’ main focus will be on whether the Fed will drop the word “patient” from its statement. Such a move would be interpreted as the Fed beginning to hike rates by June this year. As a result of Fed rate hike expectations and the diverging monetary policies [..]

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