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Technical Analysis – EURJPY bearish below cloud

Posted on July 11, 2014 at 7:12 am GMT

The bearish bias in EURJPY remains after the pair tumbled to a 5-month low of 137.48 on Thursday. On the daily chart, the tenkan-sen and kijun-sen lines remain negatively aligned, and the market is well below the Ichimoku cloud, highlighting the underlying bearish outlook. Momentum is bearish as RSI has fallen below 50, giving scope for further downside. The February 4 low is the next target down if support at 137.45 breaks. To the upside, resistance is seen at 139.28, [..]

Asian Session – Euro under pressure on Portugal bank troubles, tests 1.3600

Posted on July 11, 2014 at 6:26 am GMT

There was increased risk aversion in the currency markets since Thursday when concerns grew over the financial troubles of Portugal’s largest listed bank – Banco Espirito Santo. Markets are uncertain yet whether this event will be contained or whether it will spread to other banks and so they are taking a more cautious stance. This resulted in flows to the safe haven yen. The dollar fell to a 7-week low of 101.05 yesterday but has since recovered slightly to trade [..]

European Session – Euro under pressure over Portuguese bank concerns

Posted on July 10, 2014 at 12:49 pm GMT

Eurozone and concerns over the banking sector in Portugal placed the euro back under pressure as concerns rose over the health of Portugal’s largest listed bank – Banco Espirito Santo. Also raising concerns over the Eurozone periphery were data showing the steepest drop in Italian industrial output in almost two years. Italian industrial production fell 1.2% m/m and –1.8% y/y while in France, it fell –1.7%m/m and –3.7%y/y. The euro was down 0.2% versus the dollar to test the key [..]

Forex News – Fed signals end to QE this year

Posted on July 10, 2014 at 11:23 am GMT

The Federal Reserve released minutes from its June 17-18 policy meeting on Wednesday, disappointing markets which were expecting are more hawkish tone and more details about when the Fed would begin to raise interest rates. The minutes indicated that the Fed will begin ending quantitative easing sooner than market expectations. October appears to be the most likely time period to end the monthly bond-buying program. At its June meeting the FOMC (Federal Open Market Committee) voted to reduce the program [..]

Technical Analysis – USDJPY bearish below 200DMA

Posted on July 10, 2014 at 7:22 am GMT

USDJPY came under pressure after falling below its 200-day moving average yesterday to currently trade around 101.50. While the short-term outlook is neutral, the technical picture shows a bearish bias as the market continues to trade below the Ichimoku Cloud on the daily chart and the RSI is bearish below 50. Prices are capped below the downtrend line from April 3rd. To the downside, prices could extend lower to 101.22 (June 30 low) and then 100.81 (May 21 low). A [..]

Asian Session – Dollar under pressure after Fed minutes

Posted on July 10, 2014 at 6:16 am GMT

The dollar was broadly weaker after the FOMC minutes were released on Wednesday. The minutes of the June 17-18 meeting were not as hawkish as some would have expected and merely indicated that the Fed’s stimulus program would end in October, with no indication of when interest rates in the US would rise. The dollar dipped to 101.48 near a one-week low of 101.43 before bouncing back to 101.60. The euro rose to a one-week high against the broadly weaker [..]

European Session – All eyes on FOMC minutes, gold rises

Posted on July 9, 2014 at 1:44 pm GMT

There were no important data releases today which left the market focus on the upcoming FOMC minutes as well as a speech by European Central Bank Mario Draghi later in the US session. The minutes of the June 17-18 meeting are important although may not contain any major surprises. Investors are waiting for more hawkish signals from the Fed on higher interest rates next year, giving a risk for a dollar rally. The dollar fell against the yen all the [..]

Forex News – China’s inflation rises at a slower pace

Posted on July 9, 2014 at 9:45 am GMT

China’s inflation rate rose at a slower pace in June and below forecasts, as data on Wednesday showed the consumer price index (CPI) rose 2.3 percent in June from a year earlier, missing the market forecast of 2.4 percent. Signs of cooling in the world’s second largest economy suggest some weakness lingering in the economy and could push the Chinese government to launch more stimulus measures. Such measures could include policy easing in the way of an interest rate cut, [..]

Technical Analysis – NZDUSD bullish near record highs

Posted on July 9, 2014 at 7:35 am GMT

NZDUSD extended higher today peak at a 35-month high of 0.8816, moving closer to a post-float record high of 0.8840 that was reached in August 2011. Prices are currently capped by the upper Bollinger Band at 0.8808 but have scope for further gains as daily momentum remains positive. RSI is in bullish territory above 50 and the stochastic is pointing up but not yet overbought. These indicators add to the overall upside potential. Also, the Bollinger Bands are positively aligned. [..]

Asian Session – Dollar softens as markets look to Fed minutes

Posted on July 9, 2014 at 6:23 am GMT

Currency markets were quiet in Asia and the dollar remained weak as investors look ahead to the FOMC minutes due later today. The Fed will publish minutes of its June 17-18 meeting, when stimulus was reduced to $35 billion. The dollar was also under pressure by dovish comments from Fed policy maker Kocherlakota who said yesterday that inflation in the US may run below the Fed’s target . The dollar extended losses against the yen early in the session to [..]

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