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Technical Analysis – AUDUSD, 4-hourly: Aussie range-bound, struggling to find direction against USD

Posted on September 4, 2014 at 8:09 am GMT

The Australian dollar has been the best performing developed country currency of the year-to-date, rising by 4.7% against the greenback. However, that rally took place between January and mid-April earlier in the year and the aussie has since been marking time more or less, as two attempts to overrun the 0.9450 – 0.9500 level have failed. For the past 5 weeks, the aussie has spent time between the 0.9240 level on the downside and 0.9370 and those would be key [..]

Asian Session – Major currencies stable ahead of key events for euro, dollar

Posted on September 4, 2014 at 7:20 am GMT

The yen was little changed after the end of the Bank of Japan meeting, which kept its monetary policy steady. The Bank of Japan will continue to pump 60 to 70 trillion yen (on average 620 billion dollars) at an annual pace into Japanese financial markets in a bid to raise inflation to 2%. Dollar / yen was under the 105 level at 104.83, having topped out at 105.31 the previous day. Euro / yen was at 137.82, having briefly [..]

European Session – Euro climbs on Ukraine truce hopes; aussie gains on GDP

Posted on September 3, 2014 at 2:09 pm GMT

The euro managed to claw back some of its losses against the US dollar during European trading, as an announcement by the Ukrainian government it had reached a truce agreement, helped the single currency. The euro rose to 1.3150 as market participants were also wary not to get carried away since more than once in the recent past, hopes that the Ukraine conflict would be resolved were quickly dashed. The euro was not helped by data that showed that Services [..]

Forex News – Ukraine conflict and Scottish Independence vote are key risks for FX markets

Posted on September 3, 2014 at 12:12 pm GMT

Financial markets and foreign exchange markets more specifically are usually preoccupied with economic statistics and monetary policy decisions and intentions. Occasionally however, important political events such as elections and geopolitical developments such as wars and conflicts, can have an important bearing on markets. The Scottish Independence referendum and the conflict in Ukraine are two examples of such events that can have an important influence on markets. Starting with the conflict in Ukraine between the government and pro-Russian rebels, the economic [..]

Technical Analysis – Pound in significant down move versus dollar after mid-July 6-year high

Posted on September 3, 2014 at 8:23 am GMT

Following a six-year high of 1.7190 on July 15, the pound has been in a steady downtrend, quickly reversing the previous months’ rally and currently challenging the 6-month low of 1.6464 (it has not yet closed below it). According to the Ichimoku analysis, the pound is trading below the cloud since the beginning of August, while the Tenkan-sen and Kijun-sen lines are negatively aligned and bearish. Despite the bearish-looking chart, the pound is currently oversold as the RSI is currently [..]

Asian Session – Dollar / yen eyes 8-month high while Chinese services boost risk sentiment

Posted on September 3, 2014 at 7:03 am GMT

There was some profit-taking regarding the dollar late in the Asian session, after the greenback made some significant gains particularly against the yen and the pound. The dollar was helped by the previous day’s ISM manufacturing activity survey, which came in at the highest level of the past 3 years. This showed that the US economy is doing well, in contrast to other developed economies such as the Eurozone and Japan. Japan’s services sector disappointed, as the Markit PMI services [..]

European Session – Pound drops on Scottish Independence poll; ISM helps dollar

Posted on September 2, 2014 at 2:10 pm GMT

News that a new poll showing the Scottish pro-independence camp closing the gap with the “no” camp came as a small shock to financial markets. The pound dropped to as low as 1.6513 against the US dollar from above 1.66 the previous day, while euro / pound climbed to 0.7939. On a more positive note for sterling, the Markit / CIPS UK construction sector PMI beat expectations by rising to 64 against expectations of a drop to 61.4 from the [..]

Forex News – Reserve Bank of Australia meeting holds rates, raps aussie strength

Posted on September 2, 2014 at 1:04 pm GMT

The scheduled meeting of the Reserve Bank of Australia ended as expected with interest rates unchanged at 2.50%. More interesting was the statement by the RBA Governor Glenn Stevens. In a sense Stevens did not say anything much different than his previous week’s semi-annual testimony, in which he laid the case for keeping interest rates at the 2.50% record low for an extended period of time. Low interest rates or “monetary accommodation” as central bankers like to say, will likely [..]

Technical Analysis – USDJPY Daily: eyeing 105 and the 105.44 6-year high

Posted on September 2, 2014 at 8:25 am GMT

Dollar bulls have been disappointed this year with action in dollar / yen. Instead of continuing the previous year’s trend beyond the 6-year high of 105.44 and challenging perhaps the 111 area, the dollar dipped back all the way to the 101 level. However, since late July, the dollar has rallied strongly and today it rose to 104.85. This has given fresh hope to dollar bulls that the 105.44 will soon be breached and that dollar / yen will continue [..]

Asian Session – Yen slides ahead of Bank of Japan, US dollar strong

Posted on September 2, 2014 at 7:07 am GMT

The Japanese yen slipped to its lowest in 8 months against the dollar, as broad strength for the US currency and speculation that the Government Pension Fund would invest more in stocks, helped the Japanese stock market. Dollar / yen climbed to 104.85, eyeing the 105 level and the 105.44 high for the year which was struck back in January. Euro / dollar was also under pressure but its drop was much more contained. The pair made a new 12-month [..]

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