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European Session – Euro lifted on possible Greek debt extension

Posted on February 10, 2015 at 3:22 pm GMT

The euro was the main market focus today as political developments regarding the Greek debt renegotiation proposals to the country’s international creditors continue to be the main driver of the single currency. Markets await the unofficial Eurogroup meeting on Wednesday, ahead of the EU Summit on Thursday. Greece is at the top of the agenda as it is seeking a new debt agreement with the Eurozone that will allow it to abandon many of the austerity measures imposed since 2010 [..]

Forex News – China’s inflation rises at slowest pace in over 5 years

Posted on February 10, 2015 at 1:25 pm GMT

Inflation in China fell to the lowest level since November 2009, raising concern over a deepening weakness in the world’s second largest economy. According to data released by China’s National Bureau of Statistics, the nation’s consumer-price index (CPI) missed expectations of a 1.0% rise year-on-year and rose 0.8% on the year in January. This was down from a 1.5% annual increase in December. In addition to CPI, producer prices also came in below forecasts for a 3.8% fall. PPI declined [..]

Asian Session – Majors range-bound ahead of tomorrow’s Eurogroup on Greece

Posted on February 10, 2015 at 8:22 am GMT

Currency majors were mostly range-bound during today’s Asian trading, as the lack of fresh fundamental news led to minor fluctuations. Chinese inflation missed estimates as producer inflation fell much more than expected to -4.3% year-on-year (deflation of 3.8% was expected), while consumer inflation fell to a low of 0.8% compared to 1% expected and 1.5% the previous month. Consumer inflation was the lowest in 5 years. This opened the door to the possibility of additional monetary stimulus in the world’s [..]

Technical Analysis – EURUSD holds above 1.1300

Posted on February 10, 2015 at 8:11 am GMT

EURUSD has been consistently closing above the key 1.1300 level on the daily chart. The consolidation pattern continues although the range narrowed yesterday. To the upside 1.1400 is seen as immediate resistance, provided by the tenkan-sen line. Strong resistance lies at 1.1679 which will limit upside moves to bring a resumption of the downtrend. The pair has been making lower peaks and lower lows since May 2014. In the bigger picture, the underlying market bias remains bearish as EURUSD remains [..]

European Session – Euro buoyed by strong Eurozone sentiment data but Grexit remains a risk

Posted on February 9, 2015 at 3:21 pm GMT

Concerns over Greece and China stole the focus away from Friday’s US nonfarm payrolls report. The markets soon digested the news of strong jobs data from the world’s largest economy and risk appetite was dampened on Monday by worries over China slowing down and the possibility of a Grexit. Meanwhile, geopolitical issues also grabbed market attention as the Ukraine crisis came to the foreground after German Chancellor Angela Merkel gave Russian President Vladimir Putin until February 11 to agree on [..]

Forex News – Chinese imports shrink, as both domestic and external demand weaker

Posted on February 9, 2015 at 2:32 pm GMT

The news that Chinese imports shrunk sharply during January was a negative development that showed that domestic demand in the world’s second largest economy was soft. Both export and import growth were weak, as exports contracted by 3.3% year-on-year instead of climbing 6.3% as expected. Exports to Europe were negative, although exports to the United States had a positive sign. However, the drop in imports was much more significant, as they were down 19.9% year-on-year versus a drop of only [..]

Asian Session – Light profit-taking on US dollar after employment report rally

Posted on February 9, 2015 at 8:31 am GMT

The US dollar faced some profit-taking following the major gains it posted during Friday’s session. Euro / dollar was off the 1.1293 low right at the open of the session to trade at 1.1328. January Nonfarm payrolls on Friday came in at a stronger-than-expected 257 thousand level, whereas average hourly earnings rose at their fastest monthly pace in 6 years. This strengthened the argument in favor of the first rate hike from the Federal Reserve happening earlier rather than later. [..]

Technical Analysis – EURGBP bearishness remains below 0.7500

Posted on February 9, 2015 at 8:20 am GMT

EURGBP failed to continue the rally higher after bouncing from a 7-year low of 0.7403 to reach a high of 0.7591. Since then, the pair fell back down to come close to the 7-year low. Daily momentum remains quite negative. RSI is in bearish territory below 50, while the tenkan-sen is capping the market and keeping the underlying bearish bias. The falling Ichimoku cloud also reinforces bearishness. In the case of a break back above 0.7500, the downside momentum would [..]

Forex News – Week Ahead: UK inflation report, Australian employment, Eurozone GDP and US retail sales to attract attention

Posted on February 6, 2015 at 2:58 pm GMT

Next week will feature some important data out of China and Australia in Asia, the Eurozone GDP and Quartertly UK Inflation Report in Europe and advance US Retail Sales. It will be interesting whether the news will continue to support the recent rebounds of majors such as the UK pound, the euro and the Australian dollar against the US dollar or if the pro-dollar momentum following the strong employment report will get a fresh boost. Movements in the price of [..]

European Session – Nonfarm payrolls push euro below 1.14

Posted on February 6, 2015 at 2:53 pm GMT

Currency markets were quiet ahead of the biggest data point of the month – the US nonfarm payrolls report (NFP). Most of the majors consolidated against the greenback, especially sterling. The euro was the exception as it was driven lower by some weak industrial data out of Germany and Spain. The aussie outperformed in response to the release of the Reserve Bank of Australia’s quarterly Statement on Monetary Policy. The US jobs data beat forecasts in January, with huge upward [..]

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