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European Session – Sterling continues rally to fresh highs after manufacturing PMI

Posted on July 1, 2014 at 1:37 pm GMT

The US dollar tried to stabilize following its recent losses as it was more or less constant against the euro and the yen. Euro / dollar was at 1.3682, little changed, as was dollar / yen at 101.47. However, the pound made a significant move as it climbed to 1.7144; a new 5 ½ year high against the US dollar, as UK Markit / CIPS manufacturing PMI rose to 57.5 – significantly better than economists’ expectations of 56.8. The previous [..]

Forex News – Reserve Bank of Australia holds rates, aussie climbs higher

Posted on July 1, 2014 at 11:28 am GMT

The policy-setting meeting of the Reserve Bank of Australia resulted in a no-change decision, exactly as all analysts expected. The key rate stayed at 2.50%, which is the lowest interest rate in modern Australian history. The rate was lowered to 2.50% back in late summer of 2013. The outlook for monetary policy in Australia is stable for the foreseeable future as no interest rate changes are expected until well into 2015. It appears that the Australian economy has some forces [..]

Technical Analysis – GBPUSD, 4-hourly: Cable rallies to 5 ½ year highs but caution warranted

Posted on July 1, 2014 at 9:23 am GMT

[caption id="attachment_17930" align="alignnone" width="555"] (Click to enlarge)[/caption] Sterling rallied strongly in previous sessions, breaking the previous 1.7061 high to trade at a new 5 ½ year high of 1.7130. Sterling is in an uptrend although it is probably overbought in the short-term and needs to consolidate. This is indicated by the Relative Strength Index which is currently at 77; north of the 70 mark which denotes an overbought market. Any pullback would probably be supported by the previous high around [..]

Asian Session – Australian dollar rallies on rates’ decision, Chinese PMI and risk-on mood

Posted on July 1, 2014 at 7:02 am GMT

The US dollar remained under pressure today, as the euro climbed to its highest in 7 weeks – at levels it was trading before the ECB’s June 5 decision to apply monetary stimulus. Euro / dollar was trading around 1.3683, having risen to 1.3696 overnight. Eurozone June flash inflation was in line with expectations the previous day at 0.5%. The yen was under pressure as risk sentiment improved and stock markets rebounded. The dollar climbed to 101.46 against the yen, [..]

European Session – Euro gains following flash inflation for June

Posted on June 30, 2014 at 1:48 pm GMT

The euro traded near a 3-week high against the dollar on the final day of the first half of the year, as it gained nearly 20 pips during the session to trade at 1.3659. The euro also made headway against the Japanese yen as it approached 138.50 at 138.47. The euro was flat against the pound at 0.8009, while the pound did well against the dollar to trade within striking distance of the 1.7061, 5 ½ -year high, at 1.7050. [..]

Forex News – Eurozone June flash inflation steady, helping ECB to stay the course

Posted on June 30, 2014 at 10:51 am GMT

The news that Eurozone inflation was steady at 0.5% during June, in line with economists’ expectations, was something that will help the ECB to stay the course. If inflation had come in lower at 0.4% or 0.3%, it could have proved embarrassing for the ECB, as it would have piled on the pressure to do even more to fight the possibility of deflation. Such pressure would follow its decisions earlier in the month to cut interest rates, drive the deposit [..]

Technical Analysis – Gold, Daily – consolidating after sharp rally

Posted on June 30, 2014 at 9:10 am GMT

[caption id="attachment_17915" align="alignnone" width="555"] (Click to enlarge)[/caption] Gold has been one of the best performing assets of 2014 since it has rallied strongly from the 1185 low it made at the end of December 2013. Following a test of the 1240 area in late May / early June, gold managed to rally up to 1325, but it failed to break the 4-month high of 1330. The 1325-1330 area remains an important resistance point that needs to be overcome for a [..]

Asian Session – Yen rounds up strong first half with gain ahead of busy week

Posted on June 30, 2014 at 6:59 am GMT

The yen gained somewhat in relatively quiet Asian trading because of end-of-quarter flows and some safe haven bids as the situation in Iraq and Ukraine remained unstable. The dollar fell to as low as 101.23 against the yen, close to this year’s low of 100.80 and south of the 200-day moving average of 101.60. The 200-day average has held well as support since the dollar’s rally against the yen started in the final quarter of 2012, so it will be [..]

European Session – Dollar stabilizes following pressure from weak economic data

Posted on June 27, 2014 at 2:02 pm GMT

The dollar traded more or less little changed during the European session as it nursed its losses caused by the previous days’ weak economic data. The euro was trading at 1.3623 versus the dollar, while dollar yen was trading at 101.43 – not far from this year’s low of 100.80. Cable was capped by the 1.7040 level, as traders were reluctant to push sterling much higher in such a short time period without some solid underlying catalyst. 1.7061 remained the [..]

Forex News – ECB meeting, Eurozone and nonfarm payrolls to dominate next week

Posted on June 27, 2014 at 12:34 pm GMT

Next week will be relatively busy for foreign exchange markets because of central bank meetings as well as key economic data such as Eurozone inflation and unemployment in the United States. Starting with the euro, the European Central Bank will meet on Thursday, July 3 and the meeting will be followed by the press conference of ECB President Mario Draghi. Given that some of the major decisions of the previous meeting have not yet been implemented, Draghi is expected to [..]

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