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European Session – Sterling falls after BoE Carney’s comments

Posted on June 24, 2014 at 1:38 pm GMT

Sterling was the biggest mover today after weakening on Bank of England Governor Mark Carney’s less hawkish stance on monetary policy at a testimony in front of the Treasury Committee today. Carney remarked that there were little wage or inflationary pressures in the UK economy and that spare capacity will need to be absorbed before rates rise. His comments were not as hawkish as those made earlier this month at Mansion House when he signaled rates could be hiked this [..]

Forex news – US Existing home sales confirm housing recovery from winter doldrums

Posted on June 24, 2014 at 12:26 pm GMT

Existing home sales for the United States beat estimates by increasing by 4.9% (annualized pace) compared to the previous month. The monthly numbers implied annual sales of 4.89 million homes – the highest since October of 2013. Back in October there was a rush to lock in the low in mortgage rates. The 30-year mortgage rate is up around 80 basis points to 4.4% from its all-time low of 3.6% in late 2012. Overall the improvement in existing home sales, [..]

Technical Analysis – EURUSD bearish below daily cloud

Posted on June 24, 2014 at 7:14 am GMT

EURUSD remains well below the daily Ichimoku cloud and the 200-day moving average, keeping the market structure bearish. Also, tenkan-sen and kijun-sen are negatively aligned, adding to the downside bias. RSI is still in bearish territory below 50. While there is immediate support at Friday’s low of 1.3563, there is scope for a decline to the June 12 low of 1.3502. A break below this would open the way to a retest of February 3 low at 1.3476. To the [..]

Asian Session – Majors trading in ranges as global manufacturing prospects are mixed

Posted on June 24, 2014 at 6:42 am GMT

Major pairs were little changed during today’s trading as there was an absence of fresh developments to affect trading. Euro / dollar was trading close to the 1.36 level, while dollar / yen was also little changed at 101.95. There was a lot of focus on the pound, as it was trading not far from a more than 5-year high against the dollar of 1.7061 at 1.7019. Euro / pound was also not far from last week’s 1 ½- year [..]

European Session – Euro weakened by disappointing Eurozone PMIs

Posted on June 23, 2014 at 1:29 pm GMT

The US dollar regained some losses against the euro and the pound today but was lower against the aussie, loonie and yen. The euro fell on soft flash Eurozone PMI data resulting in the single currency losing its foothold on the 1.36 handle today. Both France and Germany disappointed markets by producing a weaker-than-forecast PMIs. Meanwhile, the composite Eurozone PMI fell to a six month low of 52.8, warning that the recent expansion in the region is losing momentum. The [..]

Forex News – May Canadian inflation beats expectations, loonie rallies

Posted on June 23, 2014 at 11:25 am GMT

News that inflation in Canada during May was at its highest in more than 2 years at 2.3% surprised markets as analysts were expecting a 2.1% rate. It was the highest headline inflation rate since February of 2012. Inflation was pushed higher by a more than 8% annual rise in energy prices. Core prices, which exclude 8 volatile components such as energy and food , rose by 1.7% and was again higher than what analysts had expected at 1.5%. As [..]

Asian Session – Australian and Canadian dollar advance on bullish news out of China and inflation data

Posted on June 23, 2014 at 6:36 am GMT

The US dollar was little changed during Monday’s session, as it was expecting the Markit manufacturing PMI later in the day as well as home sales data today and tomorrow. The euro was also stable around 1.36, ahead of the all-important flash PMI indices out of the Eurozone for June. Eurozone PMI indicators will show whether the region’s economic recovery is on track and they are closely followed by market participants. They were expected on average to be close to [..]

Technical Analysis – USDJPY neutral

Posted on June 23, 2014 at 6:22 am GMT

USDJPY is struggling to break above the Ichimoku cloud which is acting as a barrier to the upside on the daily chart. To the downside, the pair is finding support from the downtrend line from April 4. Immediate support is found at the kijun-sen line at 101.80. Below this, the May 21 low comes into sight at 100.81. If prices rise above the cloud and the June 4 high of 102.78, resistance comes at the key 103.00 level. In the [..]

European Session – Loonie surges after strong Canadian inflation and retail sales data

Posted on June 20, 2014 at 1:48 pm GMT

The economic calendar was light today allowing for some profit taking ahead of the weekend which helped the US dollar trim some losses made in the past two days following the FOMC meeting. US Treasury yields moved back up helping lift the dollar as well. The euro traded back below 1.36 to reach 1.3572, down 0.2% on the day so far and off a two-week high of 1.3642 hit on Thursday. Investors did not pay much attention to data from [..]

Forex news – Week ahead to feature Eurozone PMIs and Japanese inflation

Posted on June 20, 2014 at 10:13 am GMT

Following the Fed meeting this week, next week is likely to be relatively quieter for the US dollar and the focus will shift to the Eurozone and Japan. For the Eurozone, the key days to watch will be Monday and Tuesday. Monday will offer some clues as to the strength of the economic recovery in the Eurozone with the release of Markit Flash PMI surveys for June. Services and manufacturing for the countries of the Eurozone as well as an [..]

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