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Asian Session – Dollar continues to correct on profit-taking

Posted on November 10, 2014 at 8:23 am GMT

The US dollar continued its downward correction as it slid to just below 114 yen (session lows) and the euro challenged the 1.2485 level. The pound also managed to climb above the 1.59 mark. The main excuse for this wave of profit-taking was that the headline number for the nonfarm payrolls had missed estimates as it came in at 214 thousand versus 231 expected. However, this still represented a labor market that was improving and the unemployment rate had dipped [..]

European Session – Profits booked on dollar following employment report

Posted on November 7, 2014 at 3:41 pm GMT

The US dollar found itself on the back foot following a positive US employment report that had nevertheless not quite lived up to expectations. This was the excuse for some profit-taking by dollar longs, following some overstretched gains in the past few days; perhaps in anticipation of an even stronger report. The euro traded as low as 1.2357 but recovered to 1.2438 following a better assessment of the report. In brief, the payrolls number came in at 214 thousand; less [..]

Forex News – Week ahead will be key for sterling; Eurozone growth also on tap

Posted on November 7, 2014 at 3:00 pm GMT

Next week will most probably be quieter after this week’s key events such as the ECB meeting and the US employment report. The pound will see the UK employment report as well as the Bank of England report on inflation, while in the Eurozone investors will catch a glimpse of the flash estimate of its growth rate for the third quarter. Important data will also come out of China such as inflation, industrial output and retail sales. Starting with the [..]

Technical Analysis – Euro breaks down to fresh 2-year low, eyes 2012 1.2040 low

Posted on November 7, 2014 at 9:20 am GMT

Following the ECB meeting, the euro registered fresh lows at 1.2363, blowing past the low made early in the week at 1.2439. This is the lowest point for the euro since August of 2012 – a pivotal period that turned around the Eurozone sovereign debt crisis. A possible next target for euro / dollar is the July 2012 low of 1.2040. If the euro takes out that level, a fresh 4-year low would take place. In such sustained declines such [..]

Asian Session – Dollar shines ahead of payrolls while euro plummets on Draghi

Posted on November 7, 2014 at 8:12 am GMT

The dollar was strong across the board; against the euro, the pound, the yen and the Australian dollar, after news that the ECB is likely to join the Bank of Japan and increase its monetary stimulus in the not-too-distant future. Mario Draghi’s press conference the previous day weakened the euro to fresh 2-year lows of 1.2365, driving it below Monday’s 1.2439 low. The euro was trading at 1.2387. The dollar index traded at 5 ½ year high and risk assets [..]

European Session – Euro plunges to fresh 2-year lows after Draghi’s action pledge

Posted on November 6, 2014 at 2:58 pm GMT

The euro dropped below the 1.24 handle, the lowest since August of 2012 on promises that the ECB stood ready to do more and a reaffirmation of the willingness to significantly increase its balance sheet. The yen also capitalized on the euro’s weakness, driving euro / yen back under 143 to 142.53. The US dollar was overall stronger across the board during the European session and a drop in weekly jobless claims to 278 thousand (288 previous week) lifted hopes [..]

Forex News – Commodity currencies hurt by recent rout in raw material prices

Posted on November 6, 2014 at 12:00 pm GMT

A drop in commodity prices recently has hurt the currencies of producers of such raw materials. The CRB commodity index has dropped 14.5% from its peak in late June and although it is once again not far from the level where it started the year, it could prove a significant factor for the specific countries that depend a lot on commodity exports. Two prime examples are the antipodean currencies of Australia and New Zealand. Australia’s biggest export is iron ore, [..]

Technical Analysis – Oil in firm downtrend eyeing move lower

Posted on November 6, 2014 at 9:44 am GMT

The price of sweet blend crude in the United States has fallen below the $80 level which could signal the reduction in production from certain of the costlier methods of oil production. Oil has been in a downtrend since early June, dropping from the 107 level all the way down to 75.90 – a drop of more than 30 dollars in 5 months. Having dipped to 75.90, it has managed to rebound to its present 78.60 level. All the moving [..]

Asian Session – Dollar falls back after topping 115 yen in volatile trading

Posted on November 6, 2014 at 7:53 am GMT

The US dollar continued its relentless advance against the Japanese currency, taking out another crucial level after Japan’s central bank added to its stimulus the previous Friday and its Governor indicated yesterday that the bank stood ready to do more. As the 115 level had been cited as a target when dollar / yen was around 110-112, this move leaves open the question where the ultimate bottom in dollar / yen lies. The yen’s crash so far is simply leading [..]

European Session – Dollar eyes 115 yen after Kuroda, data and midterm elections

Posted on November 5, 2014 at 3:12 pm GMT

The dollar came within striking distance of the 115 mark versus the yen at 114.82, as decent US data such as a forecasting- beating 230 thousand private payrolls number from ADP combined with Republicans taking over both Houses of Congress after the midterm elections in what analysts called a “dollar-positive event”. The fact that BOJ Governor Kuroda earlier said that he would act without limits in order to achieve the Bank’s inflation target was even more significant. The dollar’s advance [..]

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