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Forex News – Euro in freefall as Draghi’s QE, Greek worries slam single currency

Posted on March 11, 2015 at 2:45 pm GMT

The euro has been under intense pressure since the beginning of the year – particularly against the US dollar, against which it has dropped nearly 13% – a huge drop in a period of almost three months. The euro’s recent drop has been quite historic as it marks a more than 12-year low at 1.0559. It is therefore useful to briefly look at the price history single currency since its inception in January of 1999. Shortly after the birth of [..]

Asian Session – Euro crashes post- ECB QE; eyes 1.05

Posted on March 11, 2015 at 7:56 am GMT

The euro continued its seemingly unstoppable slide during today’s Asian session dipping below the 1.07 mark against the US dollar and trading as low as 1.0665. The euro also made an 18-month low against the Japanese yen the previous day as it fell to 129.20. The fresh low of the euro versus the pound was 0.7079 – a fresh 7 ½ year low. The euro’s weakness was a result of follow-through selling after the start of Quantitative Easing by the [..]

Technical Analysis – EURUSD maintains bearish structure

Posted on March 11, 2015 at 7:48 am GMT

EURUSD maintains a bearish structure. Prices have been falling sharply since the April 2014 high of 1.3992. The pair has retraced 61.8% of the upleg from 0.8225 (October 2000) to 1.6038 (July 2008). The break below 1.1210 led to an accelerated decline to 1.0675, with scope to target the 78.6% Fibonacci level at 0.9901. Momentum is extremely bearish, with RSI below 30. This is considered to be oversold territory which could provide some slowdown in the downside momentum. But further [..]

European Session – Euro at 12-year low on Greece and ECB QE

Posted on March 10, 2015 at 3:20 pm GMT

Currency markets took on a risk-off tone today with the main concern revolving around Greece but also on the effect of the European Central Bank’s bond-buying program. The Eurogroup meeting on Tuesday ended with little progress but detailed talks are due to take place on Wednesday on a technical level. Greece needs to finalize a reform package before it runs out of money at the end of the month and so it needs to be able to receive the bailout [..]

Forex News – Tough negotiations ahead between Greece and its lenders after Monday’s Eurogroup

Posted on March 10, 2015 at 2:30 pm GMT

The Eurogroup meeting of Eurozone Finance Ministers on Monday pointed to the direction of further talks between Greece and the institutions responsible for monitoring Greece’s adjustment program. Progress in setting and implementing a package of reforms – something the Greek government has undertaken to carry out as a result of the February 20 agreement – has been slow. Technical discussions between Greek officials and officials from the institutions would start in Brussels on Wednesday, while teams in Athens would also [..]

Asian Session – US dollar rallies to multi-year highs as the Fed seen hiking earlier

Posted on March 10, 2015 at 8:19 am GMT

The US dollar rallied to fresh highs, pushing the euro below the 1.08 handle to 1.0784 – a near 12-year low, while it also rose sharply versus the yen to make a new 7 ½ year high at 122.01. Interestingly the UK pound was more resistant to the dollar’s advances and refused to make a fresh low below 1.4950 by trading at 1.5088. The euro was further weighed down by a couple of factors; firstly that the European Central Bank [..]

Technical Analysis – EURJPY strongly bearish below cloud

Posted on March 10, 2015 at 7:26 am GMT

EURJPY has almost retraced the entire upleg from 130.13 (Jan 26) to 136.68 (Feb 11) and is pivoting the 78.6% Fibonacci level of this move at 131.53. The bias is strongly bearish as the tenkan-sen has crossed back below the kijun-sen and both lines are falling. The market is below the daily Ichimoku cloud and this is also bearish. RSI gives bearish signals below 50. A break below the 130.13 low will confirm the overall bearish trend that has been [..]

European Session – Euro weighed by ECB QE and Eurogroup meeting

Posted on March 9, 2015 at 3:34 pm GMT

The single currency was boosted to a high of 1.0905 on the back of upbeat Eurozone data released during the European session today. Investor confidence rose to a 7 ½ year high as the Sentix Index improved to 18.6 this month, from a reading of 12.4 in February. Analysts had expected the index to improve to 15.0 in March. The survey of 1,025 investors and analysts was conducted between March 5 and March 7 and shows that they are shrugging [..]

Forex News – US Treasury yields surge on optimism of mid-year rate hike after strong jobs

Posted on March 9, 2015 at 12:50 pm GMT

US treasury yields and the dollar surged on Friday after the release of the nonfarm payrolls report. The strong jobs numbers increased bets among investors that the Federal Reserve would raise interest rates by the middle of this year. Increased optimism for the US economy results in a reduced demand for treasuries (which are seen as safer assets). This consequently leads to a rise in yields as bond prices fall (the two have an inverse relationship). Current holdings of bonds [..]

Asian Session – Dollar consolidating from employment report highs

Posted on March 9, 2015 at 7:55 am GMT

The dollar recoiled somewhat from multi-year highs against the euro and corrected against the yen, as some profit-taking set in. The yen was also maybe boosted by some profit-taking in risk assets, as the prospect of higher US rates sooner, has dampened risk sentiment. The shift in interest rate expectations and the sharp gains in US Treasury yields, was very helpful to dollar bulls as they pushed the greenback higher. A little after the open of Asian trading, the euro [..]

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