News / Page 237

Forex news – Canadian dollar plunges to 6-year low on weak jobs

Posted on March 16, 2015 at 5:18 am GMT

The latest job numbers out of Canada for the month of February were discouraging, as the impact of declining oil prices is starting to have an impact on job markets across the country. Canada is the world’s fifth largest crude producer, so oil a major export for the country. As such the Canadian dollar is sensitive to price changes in the commodity. Statistics Canada said that the Canadian economy lost 1,000 jobs last month and the unemployment rate rose to [..]

European Session – Euro tumbles towards 1.05

Posted on March 13, 2015 at 2:57 pm GMT

There were no major market-moving economic data today, keeping most currency pairs steady until the US session, when the dollar gained strength against the euro and the pound despite disappointing US data. Wholesale prices in the US unexpectedly declined in February for a fourth consecutive month, with a 0.5% decrease in the producer price index. Analysts expected a gain of 0.3%. Last month’s drop followed a 0.8% decrease in January. Meanwhile, the University of Michigan’s preliminary reading of the consumer [..]

Forex News – Week Ahead – Fed and SNB rate decisions are key events

Posted on March 13, 2015 at 1:55 pm GMT

The Fed’s latest interest rate decision will be the highlight of next week. This key event is scheduled for Wednesday when the Federal Open Market Committee (FOMC) will hold a policy meeting and make the rate announcement after. Recently speculation has grown that the Fed will begin to hike rates by the middle of this year, based on improving economic data that highlight the strengthening US economy. The Federal funds rate has been at record lows close to zero since [..]

Asian Session – US dollar consolidates following major gains; pound drops on Carney

Posted on March 13, 2015 at 8:20 am GMT

The US dollar was consolidating following major gains the previous day, but some buying of the dollar’s dips was also observed. For example, the euro rallied all the way up to 1.0640 level the previous day but fell below the 1.06 level after traders reestablished some long dollar positions. Euro / dollar traded as low as 1.0495 during the previous day but there was certainly a degree of excess in the dollar’s sharp move higher and it needed to return [..]

Technical Analysis – USDJPY scope to target 2007 high of 124.00

Posted on March 13, 2015 at 7:44 am GMT

USDJPY has scope for gains to the multi-year high of 122.01 hit on March 10th, 2015. Looking at the daily chart, the tenkan-sen and kijun-sen lines are positively aligned, which adds to the upside potential, as well as the market being above the Ichimoku cloud. The bullish bias remains strong above the key 120.00 level. RSI is in bullish territory above 50 and has not reached overbought conditions yet, leaving potential for further upside. MACD is above zero. Immediate support [..]

European Session – Dollar weakens after US retail sales fall for third month

Posted on March 12, 2015 at 3:29 pm GMT

The dollar was broadly weaker today, allowing the euro to bounce off a 12-year low. Disappointing US retail sales data did not help. February sales figures showed a decrease of 0.6%, contrary to forecasts for an increase of 0.3%. Last month’s fall was less than January’s 0.8% drop but it was the third consecutive monthly fall and this caused a sell-off in the greenback, which fell to 120.68 versus the yen before steadying back at pre-data levels. Bad weather was [..]

Forex News – Reserve Bank of New Zealand signals neutral stance despite falling inflation

Posted on March 12, 2015 at 1:04 pm GMT

The regular meeting of the Reserve Bank of New Zealand (RBNZ) resulted in a no-change decision, which kept the Official Cash Rate (OCR) at a relatively high 3.50%. Although the decision itself was widely expected, the RBNZ Governor Graeme Wheeler signaled that the bank was in “neutral” mode – just as likely to increase or to reduce rates according to economic developments. This was similar language to the one used in January’s policy decision statement and did not signify any [..]

Asian Session – Euro rout continues; Korea cuts rates while New Zealand holds

Posted on March 12, 2015 at 7:46 am GMT

The euro was again weak today, as euro / dollar briefly traded below the 1.05 to mark a low of 1.0494 as the single currency failed yet again to find a bottom. As recently as a few days ago on the previous Friday, prior the announcement of the US employment report, the euro was trading above 1.10. The euro managed to rebound to 1.0581 in subsequent trading. The euro’s lows against sterling and the yen, at 0.7011 and 127.61 respectively, [..]

Technical Analysis – NZDUSD holds above 4-year low

Posted on March 12, 2015 at 7:39 am GMT

NZDUSD bounced back post-RBNZ this morning. The pair had almost retraced the entire upleg from a 4-year low of 0.7175 to 0.7612. Prices tested the 50% Fibonacci retracement level of 0.7393.This is a critical level. A break above this would strengthen the upside momentum with scope to target the February 26 high of 0.7612. Looking at the long term chart, the trend was bearish since prices declined from the July 2014 peak of 0.8835 to the 4-year low of 0.7175. [..]

European Session – Euro slides over 1% to fresh 12-year low

Posted on March 11, 2015 at 3:13 pm GMT

The euro slid to fresh 12-year lows today against the dollar to touch 1.0559. With a light economic calendar, the main driver of the single currency was the European Central Bank’s quantitative easing program. The 1.1 trillion-euro bond buying program entered its third day today, with European central banks buying bonds and driving yields lower. German 10-year yields are at all-time lows. Yields fall when bond prices rise. Lower yields make assets in euros less attractive to investors so a [..]

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