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Technical Analysis – EURJPY, 4-hourly: Bearish action to be confirmed if 138 support doesn’t hold

Posted on June 11, 2014 at 8:42 am GMT

[caption id="attachment_17532" align="alignnone" width="555"] (Click to enlarge)[/caption] Price action for Euro / Yen has turned bearish since failing to break the 140 level on June 9. The pair is currently eyeing the 138 level, and if it trades below it, it will register a fresh 4-month low, which could signal further downside. The euro has not traded below 138 since early February. 138 could also act as a support of course, since it held against an attempt to break below [..]

Asian Session – Euro under pressure because of ECB but bounces off lows

Posted on June 11, 2014 at 7:00 am GMT

Pressure on the euro continued as in Japan the central bank was not expected to move tomorrow, while in the United States, 10-year treasury yields rose to a near 1-month high of 2.65%. Higher Treasury yields supported the US dollar. The euro dipped to fresh post June 5 lows against the dollar at 1.3521 around the middle of the Asian session, but managed to claw back to 1.3544 on some apparent profit-taking by euro shorts. The euro was also under [..]

European Session – Euro drops as traders reevaluate its allure given ECB easing mode

Posted on June 10, 2014 at 1:48 pm GMT

[caption id="attachment_17491" align="alignnone" width="555"] (EONIA short-term interest rate chart Dec 2013-Jun 2014)[/caption] The euro dipped nearer to the 4-month low it made last Thursday, June 5, by falling as low as 1.3532. Thursday’s low was 1.3502. The euro was trading at 1.3546 at 1300 GMT, with heavy losses from today’s and yesterday’s trading during which it lost more than a cent. The 1.3475-1.35 area is particularly important, as a violation of that level would mark fresh 7-month lows for the [..]

Forex News – Chinese inflation climbs but not a worry for now

Posted on June 10, 2014 at 12:11 pm GMT

News that Chinese consumer price inflation for May came in slightly higher-than-expected at 2.5% year-on-year was a positive development, as it shows that the economy is stabilizing. Looking at the consumer inflation subcomponents, food prices were the main reason that was pushing up inflation, as they increased by a larger-than-average 4.1%. Pork prices for example made a significant 5.6% gain month-on-month during May, after falling 6.6% in April and 7.1% in March. Excluding volatile food prices, inflation was running at [..]

Technical Analysis – OIL Daily: Oil climbs to 3-month, ready to challenge resistance at 105.20

Posted on June 10, 2014 at 10:22 am GMT

[caption id="attachment_17448" align="alignnone" width="555"] (click to enlarge)[/caption] A significant up move occurred in the oil market on June 9, driving the commodity to fresh 3-month highs. Signs that economic growth is holding up in the world’s two largest economies – the US and China – are said to be driving the gains. West Texas Intermediate (WTI) oil climbed to 104.63 on Tuesday, 10 June, which represents the highest since March 4. Tensions in Ukraine was what drove the oil price [..]

Asian Session – Yen gains ahead of Bank of Japan meeting while euro / dollar dips below 1.36

Posted on June 10, 2014 at 6:57 am GMT

The yen was strong during today’s Asian trading although the exact catalyst was unclear given also the positive risk sentiment (fresh all-time highs were recorded by stocks overnight in Wall Street). Expectations that the Bank of Japan will hold its ground and talk up the economy following its meeting in the coming Friday could have been one reason the yen was bid. Some analysts have had to revise their initial call that the BoJ would inject additional monetary stimulus during [..]

European Session – Euro under pressure as Eurozone bond yields relatively low

Posted on June 9, 2014 at 1:41 pm GMT

The euro fell back against other major currencies, as traders reassessed the implications of the monetary policy decisions of the European Central Bank. Specifically, the euro was offering interest rates and bond yields that were lower than those on offer in the United States and the UK. The Japanese yen was helped by better-than-expected growth figures for the first quarter. The euro returned near the 1.36 level against the dollar at 1.3606, as the outlook for monetary policy out of [..]

Forex News – Friday’s strong US employment report shows Fed will stay the course

Posted on June 9, 2014 at 10:28 am GMT

The US May employment report broadly matched expectations as nonfarm payrolls increased by 217 thousand, right in line with economists’ consensus of a 218 thousand rise. The unemployment rate remained flat at 6.3% compared to analysts’ call that it would rise to 6.4%. Except for January, all months this year resulted in job creation of more than 200 thousand, which is a very good performance. With this pace of job creation, the US in May finally managed to recoup all [..]

Technical Analysis – EURUSD Daily, Euro unable to break out of range after key risk events

Posted on June 9, 2014 at 8:38 am GMT

[caption id="attachment_17346" align="alignnone" width="555"] (click on chart to enlarge)[/caption] Key risk events the previous week were expected to result in sharp movements in the Euro / Dollar exchange rate. The ECB meeting on Thursday and the US employment report on Friday could have been catalysts for a breakout out of the euro’s very narrow trading range of 1.3585 up to 1.3667. In particular, many traders were looking for a break on the downside. Such expectations have not been realized however. [..]

Asian Session – Yen retreats after softer-than-expected current account

Posted on June 9, 2014 at 6:51 am GMT

The yen was slightly weaker during an otherwise quite Asian session, during which euro / dollar remained near the 1.3650 level at 1.3646. The dollar continued its rebound against the yen to reach 102.48, while the euro also closed in on the 140 mark by trading at 139.85. Attempts to top 140 were unsuccessful for now however. The pound held on above 1.68 against the dollar at 1.6807. Sentiment was overall positive after Friday’s strong employment report out of the [..]

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