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European Session – Global growth concerns hurt oil prices, euro weak after Draghi

Posted on October 10, 2014 at 1:23 pm GMT

A volatile week in the currency market concluded with risk currencies ending lower and the safe haven yen being the best performer against the majors. The dollar also inched higher but was still on course to end a record-long rally with its first weekly fall in three months. Against the yen, the dollar traded sideways just below the key 108.00 yen level today. A combination of factors contributed to risk aversion, which included concerns about a slowdown in growth in [..]

Forex News – Week ahead: US retail sales, UK unemployment and Eurozone final inflation on tap

Posted on October 10, 2014 at 10:15 am GMT

Although next week does not feature any dramatic highlights, there will still be some useful updates with respect to the US consumer and industrial output, the UK labor market and inflation and Eurozone final inflation and industrial output. Starting with the Eurozone, one of the key worries of the markets currently concerns the economic outlook of the region as well as the threat of deflation. According to Draghi, the ECB appears ready to pump more stimulus in the economy because [..]

Technical Analysis – USDCHF pauses uptrend after reaching overbought conditions

Posted on October 10, 2014 at 7:20 am GMT

USDCHF peaked at 0.9685 on Monday, a 15-month high. This proved to be a strong resistance level and upside momentum faded after the market reached extreme overbought conditions as shown by the RSI and stochastic indicators on the daily chart. The market has only retraced barely 23.6% of the 0.8702 – 0.9685 upleg. A deeper correction lower towards the key level of 0.9300 is possible before any rebound. (This support area also includes the 38.2% Fibonacci retracement level). The underlying [..]

Asian Session – Yen holds dollar in check amidst risk aversion, while Draghi halts euro’s rebound

Posted on October 10, 2014 at 6:49 am GMT

Risk aversion and Draghi’s speech were the two main themes for foreign exchange markets in recent trading sessions. The US stock market was on a roller coaster ride for the past three days as stocks were down sharply on Tuesday, enjoyed their best day of the year on Wednesday only to give back those gains and more on Thursday. The US stock market has enjoyed a spectacular ride – nearly tripling from its 2009 low but even the IMF (which [..]

European Session – Sterling falls after BoE, dollar decline paused by jobless claims

Posted on October 9, 2014 at 1:06 pm GMT

The dovish FOMC minutes continued to work against the US dollar although an upbeat jobless claims report today helped save the greenback from a further decline. The euro benefitted from the weaker dollar and pushed higher for a fourth day in a row to peak at 1.2790 in early European session trading. Weak German and French trade balance data today were shrugged off as investors were more interested in the changing dollar sentiment. A risk event for the euro could [..]

Forex News – Fed focus on soft US inflation leaves dovish tone in FOMC minutes

Posted on October 9, 2014 at 10:24 am GMT

On Wednesday the Federal Open Markets Committee (FOMC) released minutes of the latest policy meeting from September 16-17. The dovish tone of the minutes dropped a surprised on the markets and caused the dollar to plunge while US stock markets rallied. The minutes indicated that the Fed showed signs of concern over the global slowdown and the impact this would have on the US economy as a whole. Also there is fear that recent strength in the dollar has a [..]

Technical Analysis – AUDUSD upside correction

Posted on October 9, 2014 at 6:54 am GMT

AUDUSD has hit new highs for the 4th day in a row after bouncing off the October 3 low of 0.8641 to trade at 0.8884. Selling pressure has eased and the RSI has turned back up to show that downside momentum has reversed for now. However the bearish MACD signals that this may be a brief correction to the upside. The underlying trend remains bearish as the market is below the 200-day moving average and the daily Ichimoku cloud is [..]

Asian Session – Fed minutes cause dollar to drop as market pushes back expected rate hikes

Posted on October 9, 2014 at 6:46 am GMT

The US dollar dropped versus other major currencies following Federal Reserve minutes that were interpreted as dovish. Fed board members seemed to fret about the weakening global economic environment and the impact it would have on US growth prospects. Fed governors were also cautious on the negative effect the stronger US dollar would have on exports and on inflation. These considerations seemed to play a key role in the committee’s decision to keep the phrase that rates would stay low [..]

European Session – All eyes on FOMC, dollar holds steady

Posted on October 8, 2014 at 2:08 pm GMT

The lack of major data releases in the European session kept price action amongst most major currency pairs sideways. Investors were reluctant to enter new positions ahead of the FOMC minutes which are due for release at 1800 GMT on Wednesday. Meanwhile, market sentiment was also quite damp after the International Monetary Fund’s cut its global growth forecasts in an announcement on Tuesday. US Treasury yields have fallen and removed some of the steam out of the greenback, whose recent [..]

Forex News – How non-major currencies fared during Q3

Posted on October 8, 2014 at 1:53 pm GMT

USDCAD The Canadian dollar was weak against the US dollar, as it was the victim of not only the broad strength of the greenback but also of the weakness in the price of oil; the major Canadian export. The Canadian economy is posting overall fairly robust growth rates of around 2.5% for the year as a whole according to the IMF, with the second half expected to show some improvement. Currently, the interest rate is at 1% and inflation approximately [..]

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