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Asian Session – Dollar stalls ahead of Yellen and Draghi speeches

Posted on August 22, 2014 at 6:50 am GMT

The dollar is on track to make weekly gains versus most major counterparts although its rally has stalled ahead of a speech by Federal Reserve Chair Janet Yellen at Jackson Hole later today. Cautious investors took the opportunity to book some profits ahead of this risk event and this resulted in the dollar easing slightly today. A dovish tone from Yellen would be likely negative for the greenback. If Yellen is less dovish and indicates the Fed is willing to [..]

European Session – US data buoy dollar, focus turns to Yellen at Jackson Hole

Posted on August 21, 2014 at 2:43 pm GMT

The euro hovered close to an 11-month low of 1.3241 against the dollar. Further losses were paused after the release of better-than-expected German PMI, which lent some support to the euro. The composite German PMI was strong at 54.9 with strength in the service sector and a stronger-than-expected manufacturing PMI at 52 was very encouraging. Also Eurozone PMIs helped to stabilize the euro around 1.3270. Sterling slid to a low of 1.6567 after today’s UK retail sales numbers were mixed [..]

Forex News – Dollar rallies as Fed talks of exit-strategy

Posted on August 21, 2014 at 8:57 am GMT

The markets reacted positively to the Federal Reserve’s more hawkish tone regarding interest rates. The July policy meeting minutes released on Wednesday showed that the Federal Open Market Committee came closer to exiting the current monetary policy. The minutes from the central bank’s July 29-30 meeting revealed that many FOMC policy makers were uncomfortable with leaving rates low for an extended period of time and many favoured raising rates sooner than previously anticipated. Their views were based on the fact [..]

Technical Analysis – USDCHF bullish at upper Bollinger Band

Posted on August 21, 2014 at 7:48 am GMT

USDCHF has closed back above the upper Bollinger Band and reached a new 8-month high of 0.9144. Daily momentum remains positive, with RSI and MACD both in bullish territory. The technicals highlight the continued upside potential. USDCHF has scope to target the January 19 high of 0.9155. Support is seen at 0.9014, the August 15 low and lower Bollinger Band. A break below the 200-day moving average would threaten the short-term bullish bias. [..]

Asian Session – Dollar maintains strength following Fed minutes

Posted on August 21, 2014 at 7:11 am GMT

The Federal Reserve minutes of the July policy meeting which were released on Wednesday gave a more hawkish-sounding tone and helped push the dollar higher. The minutes showed the Federal Reserve Open Market Committee (FOMC) were more willing to raise interest rates sooner due to a surprisingly stronger recovery in the US labour market. Markets reacted positively to the FOMC minutes and bought the dollar, which was already firm following a series of upbeat US housing data this week. The [..]

Forex News – Change in MPC voting pattern lifts sterling

Posted on August 20, 2014 at 2:07 pm GMT

The Bank of England released its policy meeting minutes from the August 6-7 meeting today, surprising markets by showing a more hawkish inclination than usual. Two of the central bank’s 9-member Monetary Policy Committee (MPC) were in favour of hiking interest rates in August. This was the first time in three years that not all nine MPC members voted in unison not to raise rates, ever since the benchmakr rate was put to record lows of 0.5%. Martin Weale and [..]

European Session – Sterling reverses losses after surprise hawkish BoE minutes

Posted on August 20, 2014 at 12:19 pm GMT

Sterling was a surprise outperformer after news today that the Bank of England’s Monetary Policy Committee (MPC) did not have a unanimous vote on interest rates for the first time since July 2011. Minutes of the August 6-7 policy meeting revealed that two hawkish MPC members of the 9-member committee voted in favour to start raising interest rates by 25 basis points from the current 0.5%, thereby bringing up the rate to 0.75%. Sterling jumped soon after the minutes were [..]

Technical Analysis – USDJPY scope for gains towards 104.00

Posted on August 20, 2014 at 7:11 am GMT

USDJPY extended gains to 103.25 in early Wednesday trading. The bullish bias was strengthened after prices broke above 103.07, the July 30 high which was previous resistance. The underlying market structure is bullish above the daily Ichimoku cloud and above the key 103.00 level. Other technical indicators reinforce the bullish bias – tenkan-sen and kijun-sen are beginning to turn positive while RSI and MACD are bullish. There is scope for further gains to 104.10, the April 3 high. A break [..]

Asian Session – Sterling extends losses ahead of BoE minutes

Posted on August 20, 2014 at 6:46 am GMT

The US dollar outperformed most major counterparts and extended gains versus the euro to reach a new 9-month high after upbeat US housing starts numbers the previous day boosted the greenback. The euro opened in Asia at 1.3318 and extended its decline to a fresh 2014 low of 1.3300. This is a key psychological level, which if broken to the downside will accelerate losses for the euro. The dollar also gained against the yen to extend a rally from Tuesday [..]

European Session – Dollar jumps on forecast-beating US housing starts

Posted on August 19, 2014 at 2:43 pm GMT

The US dollar jumped higher after data released today showed positive signs for the US housing market . A report showed housing starts reached the highest level in eight months, signaling that the housing market has rebounded and should provide some support for economic growth in the US. Home construction starts rose 15.7% to a 1.09 million annualized rate following June’s 945,000 rate. The figure was stronger-than-expected, exceeding expectations for 965,000 starts. The dollar surged against the yen to reach [..]

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