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Asian Session – Yellen limits dollar upside; aussie gains on Chinese PMI

Posted on February 25, 2015 at 8:16 am GMT

The testimony by Federal Reserve Chair Janet Yellen was the main news item for foreign exchange markets, as it put a lid on the dollar rally by bringing down Treasury bond yields. The Fed Chair indicated that there was no pre-set schedule for interest rate increases and that for the Fed to start increasing rates, it needed to be convinced that inflation was going to head towards its 2% target. In December US inflation was at 0.8%, although lower fuel [..]

Technical Analysis – EURGBP bearish at new 7-year low

Posted on February 25, 2015 at 7:25 am GMT

EURGBP hit a new 7-year low of 0.7315. The outlook remains bearish for the pair as it remains below minor resistance at 0.7458. A break above this level would however weaken the bearish bias. Meanwhile, a break below the low of 0.7315 would strengthen the downtrend and target the next support level at 0.7260 (the 61.8% Fibonacci retracement level of the upleg from 0.5680 – 0.9801). Looking at the daily chart, the falling Ichimoku cloud and the negatively aligned tenkan-sen [..]

European Session – Dollar moves higher on Yellen’s testimony before dropping

Posted on February 24, 2015 at 3:52 pm GMT

The main highlights of the day were the Greek bailout extension approval and Fed Chair Janet Yellen’s testimony. The euro did not react as much on the EU’s approval of Greece’s reform proposals since an agreement with its creditors was more-or-less expected. The IMF did however voice concerns over the proposals. The review in April is more critical. The Eurozone’s 19 finance ministers’ approval of a 6-page list of reforms at least cleared one of the last hurdles to extending [..]

Forex News – Greece deal averts Grexit scenarios

Posted on February 24, 2015 at 3:10 pm GMT

Following tense negotiations for 3 weeks between the new Greek government and its international creditors consisting of the Eurozone and the IMF, a deal was found that will extend the indebted country’s financing program for an additional 4 months. The current program between Greece and the EU / IMF was due to expire at the end of February. In order for the deal to be approved by Eurozone finance ministers (the so-called Eurogroup), a list of reforms had to be [..]

Asian Session – Dollar keeps gains while waiting for Yellen; euro focuses on Greek reform list

Posted on February 24, 2015 at 7:48 am GMT

The US dollar was generally upbeat while waiting for Fed Chair Janet Yellen’s testimony before the Senate later in the day. The issue of when and how fast the Fed will raise interest rates is absolutely central for the dollar – especially when the Federal Reserve is compared to other major central banks that are still easing. The semi-annual Humphrey – Hawkins testimony by the head of the Fed before Congress on monetary policy always attracts a lot of attention [..]

Technical Analysis – NZDUSD favouring downside

Posted on February 24, 2015 at 7:43 am GMT

NZDUSD appears to show signs of reversing. The corrective move up from the 4-year low of 0.7175 stopped at a high of 0.7572 on February 18. Since then prices turned back down and are heading towards immediate support at 0.7444, provided by the daily tenkan-sen line. A break below this would retest the 4-year low at 07175. To the upside, resistance lies at 0.7800. The overall trend is bearish as the market has been making lower peaks and lower troughs [..]

European Session – Euro slips on caution ahead of Greek debt deal

Posted on February 23, 2015 at 3:30 pm GMT

The euro fell against the dollar to reverse Friday’s gains that were made after the Greek loan extension deal was announced. Investors are being cautious as the debt deal still has a lot of uncertainty. Greece will submit a list of planned reforms later in day which have to be agreed on by the Eurozone to secure a four-month loan extension. The initial agreement made on Friday removed the risk of the immediate threat of Greece’s exit from the Eurozone [..]

Technical Analysis – USDJPY at important juncture as uptrend stalls

Posted on February 23, 2015 at 8:02 am GMT

USDJPY remains above the daily Ichimoku cloud and has been hovering around the key 119.00 level. The near-term trend remains neutral as the tenkan-sen and kijun-sen lines have flattened out. RSI is also flat and hovering just above the 50-point level in bearish territory. The pair is an important juncture at such levels especially since the Ichimoku cloud is thinning out. To the downside, the next key level lies at 118.00. On the upside, break of 121.84 is needed to [..]

Asian session – Euro vulnerable as EU-Greece prepare final loan agreement

Posted on February 23, 2015 at 7:40 am GMT

Risk sentiment in the currency markets was supported after the EU and Greece came to an agreement on Friday to extend Greece’s loan by four months. The euro rallied on the announcement to a high of 1.1428 late on Friday and held onto most of the gains during the Asian session on Monday. The euro held steady against the yen, easing slightly off Friday’s high of 135.89. The single currency remains vulnerable however and markets are cautious until a formal [..]

Forex News – Week Ahead – Inflation numbers from US, UK Eurozone in focus

Posted on February 22, 2015 at 9:01 pm GMT

The highlight of this week will be Fed Chair Janet Yellen’s testimony as well as GDP numbers from the US, UK and Germany. Meanwhile, Euro zone, UK and US inflation data are also important to watch for. On Monday, the Bank of Japan will release minutes from its latest monetary policy meeting. Focus will then turn to Germany’s Ifo business climate data. In the US, existing home sales figures are due. Tuesday’s economic calendar will be quite busy. The final [..]

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