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Asian Session – Dollar benefits from strong employment report

Posted on July 4, 2014 at 6:48 am GMT

The dollar was consolidating its gains during today’s Asian trading on follow-through buying interest after the much stronger-than-expected US employment report the previous day. The dollar was little changed against the euro however, at 1.3604, as the market was probing the 1.36 level. Dollar / yen climbed to a 2-week high of 102.25 yesterday. Euro / yen eased back from the 139 level to trade at 138.82, while the Australian dollar managed to rebound to 0.9363 against the greenback after [..]

Technical Analysis – EURUSD testing 1.3600 support

Posted on July 4, 2014 at 6:25 am GMT

EURUSD is testing the key 1.3600 level which is an important psychological level as well as where the kijun-sen line lies. Although the tenkan-sen is above the kijun-sen, the falling Ichimoku cloud on the daily chart is adding to the bearish bias. The market is also below the 200-day moving average and the RSI has dipped back into bearish territory below 50. Prices tested the 1.3700 level on July 1st but fell back down, making this level a strong resistance [..]

Forex News – ECB and market await implementation and impact of June decisions

Posted on July 3, 2014 at 2:43 pm GMT

The ECB meeting today was pretty much a non-event in terms of policy changes, since no one expected any new measures to be announced. The key task of the ECB for now is to implement the existing measures that were announced back in the June meeting. For example, as far as the long-term liquidity operations that are scheduled after the summer (the TLTROs), the ECB published a series of guidelines of how they will function and their rules of operation. [..]

European Session – Dollar gains following yet another strong employment report

Posted on July 3, 2014 at 2:06 pm GMT

The US dollar was the most significant gainer during today’s European session, following a significantly stronger-than-expected employment report in the US. Nonfarm payrolls for June rose to 288 thousand compared to 217 thousand the previous month and 212 thousand that economists were expecting. In further good news about the US economy, the unemployment rate dipped to 6.1% compared to 6.3% the previous month. It was the lowest unemployment rate in 6 years. It is worth noting that the rate of [..]

Technical Analysis – S&P 500 Daily, Bullish trend, all-time highs but signs of being overbought

Posted on July 3, 2014 at 10:03 am GMT

[caption id="attachment_17991" align="alignnone" width="555"] (Click to enlarge)[/caption] The S&P 500 has recently traded above the 1970 mark, the latest in a series of all-time highs since early May. As shown by the chart, the trend is positive since price action is well above the cloud. The Tenkan-sen line has crossed the Kijun-sen line from below in late April this year, which was a buy signal. It has since maintained itself above the Kijun-sen line, without opening too much of a [..]

Asian Session – Australian dollar drops hard on RBA governor comments, retail sales

Posted on July 3, 2014 at 7:11 am GMT

The Australian dollar was again the main mover of the session, falling 0.7% below the 94 cent level against the dollar to trade at 0.9379. Only on Tuesday the aussie was trading above 95 cents. This time, the Reserve Bank of Australia Governor Glenn Stevens said the currency was substantially overvalued by most measures. In addition, he said that investors underestimated the possibility of a substantial fall in the local currency. Since one of the reasons for the initial rally [..]

European Session – US dollar gains ahead of Yellen, Thursday’s nonfarm payrolls

Posted on July 2, 2014 at 1:57 pm GMT

The US dollar managed to find its feet following some pressure the previous sessions, as the ADP employment numbers for June substantially beat expectations. The Automatic Data Processing payrolls number is sometimes seen as a predictor of the official nonfarm payrolls number although its record has not been a perfect one. ADP payrolls came in at 281 thousand, ahead of analyst expectations of a 200 thousand gain. This was cause for some optimism that Thursday’s payrolls number will also beat [..]

Forex News – Commodities and bonds top stocks as best performers of the first half

Posted on July 2, 2014 at 12:49 pm GMT

The end of the second quarter is usually a good chance for investors to check their investment performance versus their benchmarks and the market. In addition, such performance data helps to understand the current financial environment and what the big trends in asset prices are. As the chart shows, the best performing asset during the first 6 months of the year is the precious metal gold. Gold was up by more than 10% since the beginning of the year, but [..]

Technical Analysis – EURJPY Daily: neutral as support levels hold for now

Posted on July 2, 2014 at 8:54 am GMT

[caption id="attachment_17962" align="alignnone" width="555"] (Click to enlarge)[/caption] The euro / yen pair made a 5 ½ year high above 145 at the end of 2013, but has since been challenged and consolidating within a range. A sell-off during January led to the 136.50 level, which is the low for the year so far and an important support level (Support 2). This is also near the 61.8% Fibonacci retracement of the move from 131 to 145. The other support level is [..]

Asian Session – Australian dollar drops from high after dismal trade data

Posted on July 2, 2014 at 7:04 am GMT

In an otherwise quiet session, the Australian dollar was again the biggest mover among developed currencies, dropping from a 9-month high over 95 cents to 0.9456. The reason was worse-than-expected trade figures for May, as the country’s deficit came in at 1.9 billion Australian dollars instead of the 120 million expected by economists. The reason for the worse-than-expected numbers was a 5% drop in exports, as the prices of some key export commodities such as iron, were lower. Talking about [..]

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