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Technical Analysis – NZDUSD, Daily: New Zealand dollar targets 3-decade high of 0.8840 against US dollar

Posted on June 27, 2014 at 9:26 am GMT

[caption id="attachment_17898" align="alignnone" width="555"] (click to enlarge)[/caption] The New Zealand dollar or the kiwi has been the best performing developed market currency in the world so far during 2014. It has gained 6.7% against the US dollar since the beginning of the year. The kiwi is currently eyeing the 0.8840 level that it achieved back in April of 2011. That was the highest exchange rate since the early 80s, when foreign exchange controls were still in place in New Zealand. [..]

Asian Session – Dollar drops as questions arise on US economic vigor

Posted on June 27, 2014 at 6:59 am GMT

The dollar was under pressure in recent sessions as economic data questioned whether the world’s largest economy would manage a growth rate above 2% during 2014. After Wednesday’s sharp negative revision of 1st quarter economic growth, personal consumer spending also missed expectations on Thursday. Consumer spending came in at 0.2% month-on-month instead of 0.4% expected. Consumption makes up more than two thirds of the US GDP and this fact made the miss significant as it means growth may not pick [..]

European Session – Sterling rallies on BoE report, dollar under pressure after weak US spending data

Posted on June 26, 2014 at 1:31 pm GMT

Sterling rallied sharply against the dollar after the Bank of England announced preventative measures in its Financial Stability report today that were not as strict as the markets were expecting. The measures were with regards to the UK housing market and were unlikely to affect interest rates too much. Investors’ expectations of a rate hike this year were probably not changed after today’s news. The pound rose to as high as 1.7038 after the news, rebounding from a dip to [..]

Forex News – Central Bank of Turkey reduces interest rate but Lira little changed

Posted on June 26, 2014 at 9:59 am GMT

The Central Bank of Turkey decided to cut interest rates by 75 basis points on Tuesday, June 24, as it cut its benchmark 1-week repo rate to 8.75% from 9.50%. The central bank had also cut its key rate by 0.50% during its May meeting (from a high of 10%). The Central Bank of Turkey was forced to hike interest rates by a huge 5.5% back in January – from 4.5% to 10% – in order to defend the Turkish [..]

Asian Session – US GDP contraction keeps dollar under pressure

Posted on June 26, 2014 at 6:42 am GMT

The US dollar found itself on the defensive following a much worse-than-expected revision to economic growth during the first quarter. This was another hole in the bullish dollar case as it was quite hard to justify such a significant contraction only with bad weather and inventory accumulation. The figures will impact GDP growth for the year as a whole as it is quite unlikely the economy will be able to grow fast enough in order to register growth that surpasses [..]

Technical Analysis – AUDUSD neutral trend on daily

Posted on June 26, 2014 at 6:38 am GMT

AUDUSD is hovering around the key 0.9400 level and has been consolidating around this level since the past two weeks. The trend on the daily chart has overall been neutral since early April when the pair hit a 7-month high of 0.9460. Prices remain in the upper Bollinger Band and well above the 200-day moving average, while the RSI remains positive above 50, keeping the bullish bias intact. A close below the 0.9200 level could shift the bias back to [..]

Forex News – Carney speeches create sterling rollercoaster

Posted on June 25, 2014 at 2:13 pm GMT

In the absence of volatility in the three biggest major currencies of the US dollar, the euro and the Japanese yen, the British Pound has attracted a lot of attention from short-term traders and other market participants. This has created some degree of volatility and there have been some powerful moves for the pound lately. On June 11, during the annual Mansion House speech, the Governor of the Bank of England Mark Carney expressed concern that the market was underpricing [..]

European Session – Dollar falls on disappointing US GDP

Posted on June 25, 2014 at 1:36 pm GMT

After falling to a one-week low against the dollar, the pound recovered some losses today and bounced to test the key 1.7000 level. This came on the back of a broadly weaker dollar which fell after disappointing US data today. Yesterday the pound came under pressure after comments from Bank of England Governor Mark Carney who reduced market expectations for a rate hike later this year, and the pound dropped below 1.70 for the first time this week. Meanwhile GDP [..]

Technical Analysis – EURGBP rises above key 0.8000 level

Posted on June 25, 2014 at 7:23 am GMT

EURGBP remains below its downtrend line from early March on the daily chart. Prices are well below the Ichimoku cloud and the tenkan-sen and kijun-sen are negatively aligned, all confirming the bearish market structure. Support held at 0.7958 around which prices consolidated for a few days. A dovish Mark Carney caused a short squeeze, helping prices rise above the key 0.8000 level. The market is currently at 0.8027 and has scope to target 0.8150, the end of May high. A [..]

Asian Session – Pound under pressure as profit-taking and Carney take their toll

Posted on June 25, 2014 at 6:35 am GMT

The pound fell further from last week’s 5 ½ year high against the dollar, to trade below 1.70 at 1.6963. The euro also managed to rise above the key 80 pence level against the pound at 0.8020. Weakness in the pound was mainly caused by Bank of England Governor Carney’s remarks before UK parliamentarians. Just as last week Carney caused a rally in the pound after he said the market might have been underestimating the possibility of interest rate hikes, [..]

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