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European Session – Euro extends gains to 1.13 as dollar hurt by weak US durable goods orders

Posted on January 27, 2015 at 2:59 pm GMT

The euro extended gains against the dollar today after rallying from a fresh 11-year low of 1.1096 touched on Monday. There is some relief in the markets that the new Prime Minister of Greece, Alexis Tsipras, appeared willing to negotiate with the nation’s international creditors. A weaker dollar also supported the euro. The euro rose to as high as 1.1383. Friday’s Eurozone flash CPI is an important risk event for the single currency. Meanwhile a jump in EURCHF helped lift the [..]

Forex News – Denmark vows to defend euro peg and cuts rates in the process

Posted on January 27, 2015 at 12:11 pm GMT

Following the abandonment of the Swiss franc cap by the Swiss National Bank, currency traders have also recently attacked other pegs. One of these pegs under attack is the Danish Krone with the euro. The rationale is that the Krone should outperform the falling euro and appreciate. The economic situation in Denmark is better compared to the Eurozone; with growth expected at 1.8% in 2015 and inflation at 1.6% – but it is not exactly overheating. Although all currency unions [..]

Technical Analysis – EURUSD pauses downside momentum, remains in 1.12 handle

Posted on January 27, 2015 at 8:20 am GMT

EURUSD paused its downward momentum to find support just above the 61.8% Fibonacci retracement level at 1.1210 (of the up leg from the all-time low of 0.8225 to the all-time high of 1.6038). The pair has moved off 11-year lows of 1.1096 hit on Monday and has since been consolidating just above the 61.8% Fib at 1.1210. The daily RSI is oversold which suggests some pause in the downside. The break of this Fib level sees scope to target the [..]

Asian Session – Euro steadies after key events; US dollar awaits Fed

Posted on January 27, 2015 at 8:17 am GMT

The euro stabilized at a relatively higher level against the dollar, on optimism that the incoming anti-bailout government in Greece will eventually strike a deal with its creditors and scenarios such as a Greek exit from the Eurozone (so-called “Grexit”) will be avoided. The euro was trading near its highs for the session just below 1.1250, having hit a low of 1.1096 right after the Greek election results were announced. The new Greek Premier would announce his cabinet today and [..]

European Session – Euro bounces back above 1.12 as markets digest Syriza win

Posted on January 26, 2015 at 3:08 pm GMT

The euro has recovered from a dip to below $1.11 which occurred in reaction to the results of the Greek election in early trading today. The Syriza victory was widely expected by the markets but the failure to win a full majority raised uncertainty over what coalition government would be formed. It has been reported that there will be an accord between the left wing Syriza party with the right wing Independent Greeks party. Even if the uncertainty of a [..]

Forex News – Greek elections put anti-bailout coalition in power, market in wait-and-see mode

Posted on January 26, 2015 at 12:10 pm GMT

The news that the leftist SYRIZA party won the Greek elections and formed a coalition government with the Independent Greeks meant that Greece has moved from a government that was formed with the aim of implementing the bailout terms to a government that aims to dismantle it or at least substantially alter it. This introduces some uncertainty over whether Greece will continue to be supported by the Troika of international lenders of European Commission / IMF and ECB and receive [..]

Technical Analysis – EURGBP at new 7-year lows

Posted on January 26, 2015 at 8:29 am GMT

EURGBP touched a new 7-year low today, hitting 0.7403 after opening on Monday with a gap down at 0.7428 compared to Friday’s close at 0.7472. The pair has since filled the gap to trade around 0.7480 in early European session trading. On the daily chart the underlying bias remains bearish. The market is below the Ichimoku cloud and the tankan-sen and kijun-sen lines are falling. RSI is below 50 although at oversold levels. This suggests the possibility of a near [..]

Asian Session – Euro recovers after fresh 11-year low, as markets eye Greek election aftermath

Posted on January 26, 2015 at 8:16 am GMT

The clear win of the leftist SYRIZA party in Greece was the main piece of news foreign exchange markets had to deal with during Monday’s Asian session. SYRIZA’s lead over the second-placed New Democracy party of incumbent Prime Minister Antonis Samaras was a commanding one at 8.5%. However, SYRIZA’s leader Alexis Tsipras will have to rely on a coalition partner in order to become Prime Minister as his party fell only a couple of seats short of securing an overall [..]

European Session – Euro below 1.12, sterling unmoved by better-than-expected UK retail sales

Posted on January 23, 2015 at 3:07 pm GMT

The US dollar has been the main beneficiary of Thursday’s European Central Bank announcement of its new QE program. The 60 billion a-month bond purchase program along with expectations of higher US interest rates will see a widening gap between the euro and the dollar. The euro extended lower today to hit fresh 11-year lows of 1.1113 in the European session, down from a pre-ECB level of 1.1650. Against the pound, the euro hit a new 7-year low of 0.7427 [..]

Forex News – Week Ahead – FOMC the next big event after ECB

Posted on January 23, 2015 at 3:00 pm GMT

The following week will be a busy one as there will be many important economic data releases. The highlight of the week will be the FOMC rate decision. GDP numbers from various major economies will be out as will inflation data. Looking at the Eurozone, the main data will be from Germany, its largest economy. The German Ifo business climate data will be published on Monday while retail sales and import price numbers are due on Thursday. Another consumer confidence [..]

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