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European Session – Dollar slightly higher while sterling consolidates gains

Posted on June 13, 2014 at 1:36 pm GMT

Euro / dollar dropped to 1.3544 from 1.3559 at the beginning of the session, while dollar / yen was slightly higher at 102. Somewhat good news for the euro was that the Eurozone’s trade balance for April was a positive 15.7 billion euros, beating expectations of a 13.9 billion surplus. There was little news flow to drive today’s European trading and the market was still adjusting to previous events such as Bank of England Governor Carney’s speech the previous day [..]

Forex News – Federal Reserve meeting dominates the week ahead

Posted on June 13, 2014 at 12:41 pm GMT

The June 17/18 meeting of the US Federal Reserve’s Open Market Committee (FOMC), responsible for setting monetary policy, will loom large over the coming week. The meeting is particularly important as it will feature an update of the staff projections as well as a press conference by Fed Chair Janet Yellen. The Fed should reduce its monthly asset purchases to 35 billion dollars – 15 billion in mortgage-backed bonds and 20 billion in Treasuries. The key focus of the investors [..]

Technical Analysis – EURGBP 4-hourly: Euro breaks 80 pence, dropping to 1 ½ year low against pound

Posted on June 13, 2014 at 8:06 am GMT

[caption id="attachment_17599" align="alignnone" width="555"] (click to enlarge)[/caption] Recent action of the euro versus the pound has resulted in new 1 ½ year lows, with the euro retreating below the psychologically important 80 pence level. The euro traded as low as 0.7985 today. The trend is down given that price action is below all the moving averages, long-, medium- and short-term. The moving averages are also pointing down, reinforcing the bearish picture. However, recent price action has led to oversold conditions. [..]

Asian Session – Sterling rallies after Carney speech, oil gains on Iraq civil war threat

Posted on June 13, 2014 at 6:57 am GMT

The pound was the best performing currency of the overnight session after a speech by Bank of England Governor Mark Carney, in which he explicitly warned that interest rates could rise sooner than markets expected. During the annual speech of the incumbent Governor before an audience of London bankers, Carney expressed confidence that the economy would continue to grow in coming quarters. Any move on interest rates would have to be “gradual and limited” as high household indebtedness and a [..]

European Session – Pound gains ahead of Carney speech, US retail sales disappoint

Posted on June 12, 2014 at 1:24 pm GMT

The main news of the European session was that the advance estimate of retail sales out of the United States for May disappointed expectations as it came in at 0.3% while the consensus estimate was 0.6%. The core US retail sales, which exclude automobiles, gasoline, building materials and food services came in flat compared to expectations of a 0.4% increase. However, the amount of the expectations miss was matched by the upward revision of the prior month’s estimates, which balances [..]

Forex News – Australia’s May unemployment report delivers mixed picture

Posted on June 12, 2014 at 11:53 am GMT

Australia’s unemployment rate stayed constant at 5.8% during May, defying predictions of a rise to 5.9%. It was the third month in a row that the unemployment rate held steady, showing a more or less stable economy and labor market. The news on total employment or the total number of jobs in the economy was less encouraging. There was a reduction of almost 5,000 jobs as opposed to the creation of 10,000 jobs that economists were expecting. Fortunately most of [..]

Technical Analysis – NZDUSD daily, bullish action expected to test 0.8780 soon

Posted on June 12, 2014 at 9:41 am GMT

[caption id="attachment_17581" align="alignnone" width="555"] (click to enlarge)[/caption] The kiwi dollar jumped today on news that the Reserve Bank of New Zealand is considering additional interest rate hikes in the near future, on top of today’s quarter-point rise to 3.25%. The New Zealand dollar has been rallying for more than a week in anticipation of today’s decision and following the rate announcement it jumped to 0.8665 – a 4-week high. The New Zealand dollar actually made a 4-year high at 8.8778 [..]

Asian Session – Kiwi rallies after rate hike; aussie gains capped by mixed employment report

Posted on June 12, 2014 at 7:10 am GMT

The yen was pinned near recent levels in Asia today, while the euro rebounded slightly against the dollar. Euro / dollar was at 1.3539 – close to the 1.3502, 4-month low. The dollar was stable against the yen at 102.06 – having dipped below 102 yesterday – while the euro was slightly firmer against the yen at 138.17. The euro was briefly driven below the 138 level the previous day but managed to climb back. The best performer of the [..]

European Session – Yen gains ahead of BoJ, sterling benefits from employment report

Posted on June 11, 2014 at 1:43 pm GMT

The yen was stronger against other majors during Wednesday’s European session, as investors awaited an upbeat economic assessment by the Bank of Japan on Friday. Some profit-taking in risk assets was also helping the yen, while there were some indications that the Japanese currency was being replaced as the funding currency of choice by the euro. The dollar was driven below the 102 yen level at 101.98, while the euro continued to make its way towards the crucial 138, 4-month [..]

Forex News – UK unemployment falls lowest since end-2008 but wage growth weak

Posted on June 11, 2014 at 12:06 pm GMT

The news that UK unemployment dropped to 6.6% during the three months to April was another indication that the UK economic recovery is continuing strong. Economists were expecting an unemployment rate of 6.7%, while the previous month’s figure was 6.8%. It was the lowest unemployment rate of the past 2 ½ years. There was also positive news on the claimant count or the number of unemployed claiming benefits, which fell by 27.4 thousand or slightly more than economists expected. Where [..]

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