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Forex News – Janet Yellen’s 2-day testimony boosts dollar to near 1-month high

Posted on July 17, 2014 at 1:42 pm GMT

The semi-annual testimony of Fed Chair Janet Yellen on monetary policy was an interesting event that helped to clarify the Federal Reserve’s views on the economy and interest rates going forward. The appearances over two days of Yellen first before the Senate and secondly before the House of Representatives, gave some very useful insights into the Fed’s thinking. Firstly, the most important message for markets is that the Fed remains convinced that loose monetary policy is still appropriate, in that [..]

European Session – Yen strengthens on safe haven flows as Ukraine tensions return to the spotlight

Posted on July 17, 2014 at 1:24 pm GMT

The yen was one of the best performing major currencies today due to risk aversion in the markets on growing geopolitical tensions regarding the Ukraine. The United States hit Russia with a new set of sanctions yesterday as tensions mount between Russia and Ukraine. The euro fell to a 5-month low against the safe haven yen to 137.17, while the dollar slid to as low as 101.39 yen, moving further off yesterday’s 1-week high of 101.78. The dollar however remained [..]

Technical Analysis – EURJPY strongly bearish

Posted on July 17, 2014 at 7:59 am GMT

EURJPY is strongly bearish on the 4-hour chart, trading well below the downtrend line from July 3. RSI and MACD are in bearish territory and confirm the downside bias, while tenkan-sen and kijun-sen are negatively aligned. The falling Ichimoku cloud also adds to the bearish market structure. Prices are currently at 5-month lows at 137.34 and there is scope to target the February 4 low of 136.22. To the upside, resistance has formed at 137.50. [..]

Asian Session – Yen gains while dollar is close to 1-month high on Yellen

Posted on July 17, 2014 at 6:35 am GMT

The yen was the best performer of the Asian session today, although there was no clear catalyst for yen strength apart from some profit-taking in risk assets. This followed new all-time records for US stock indices overnight. One possible reason for the caution during the Asian session was the new sanctions announced by the United States and the European Union against Russia, as Russia was seen helping the anti-Kiev rebels in Ukraine. This showed that although Ukraine was no longer [..]

Technical Analysis – GBPUSD neutral

Posted on July 17, 2014 at 6:25 am GMT

GBPUSD remains neutral and technical indicators are not confirming any trend on the 4-hour chart. The pair is pivoting the 1.7133 level and resting just at the top of the Ichimoku cloud. Tenkan-sen and kijun-sen are horizontal. RSI is flat. The short-term outlook is range-bound. Support lies at the recent low of 1.7058 and resistance at the recent high of 1.7190. [..]

European Session – Yellen comments continue to drive dollar higher

Posted on July 16, 2014 at 1:12 pm GMT

The US dollar was broadly stronger today, with the main driver being Federal Reserve Chair Janet Yellen’s less-than-dovish comments yesterday at a testimony in front of the US Senate Banking Committee. Yellen’s more positive outlook on the US economy opened the door for a shift in the rate hike timeline. Based on her comments, rates could rise sooner than expected if employment in the US improved. “If the labor market continues to improve more quickly than anticipated by the Fed, [..]

Forex News – Sterling drops after poor UK wage growth numbers

Posted on July 16, 2014 at 10:11 am GMT

Sterling weakened after UK employment data released on Wednesday. Despite the official unemployment rate falling to its lowest level since late 2008 in the three months to May, the focus was on wages. The jobless rate fell to 6.5% from 6.6 % a month earlier but wage increases missed estimates and came in weaker-than-expected, remaining near 2009 lows, giving evidence that wages lagged inflation. In the three months through May, total wages (including bonuses) rose a yearly 0.3%, below forecasts [..]

Technical Analysis – EURUSD bearish below 1.3600

Posted on July 16, 2014 at 7:35 am GMT

EURUSD has fallen below the key 1.3600 level, and closed below the kijun-sen line yesterday, paving the way for more losses. The market remains below the daily Ichimoku cloud which is thickening and adding to bearish pressure on prices. RSI has fallen back into bearish territory. To the upside, the 1.3600 level is a strong barrier. The downside target is at 1.3511 (June 12 low) and at 1.3502 (June 5 low). [..]

Asian Session – Dollar firms after hawkish Yellen testimony

Posted on July 16, 2014 at 6:57 am GMT

The dollar remained firm after strengthening on Tuesday following a testimony by Federal Reserve Chair Janet Yellen in front of the US Senate Banking Committee. Yellen’s outlook on the US economy was more positive-than-expected and gave reason to support the view that an interest rate hike could come sooner than markets expected. However, Yellen noted that rate hikes still depend on the labor market situation. She said that considerable slack still remains in the US labor market and that a [..]

European Session – Sterling boosted after surprisingly better UK inflation

Posted on July 15, 2014 at 1:28 pm GMT

Sterling was a big mover after UK inflation data surprised to the upside. CPI in June rose at its fastest rate since January, giving the pound a boost against the dollar to 1.7172, not far from a multi-year high of 1.7178 hit earlier this month. The headline inflation number for June was well above expectations and increases speculation of more votes in favor of a rate hike at the next Bank of England meeting in August. The euro briefly dipped [..]

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