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European Session – Consolidation until nonfarm payrolls

Posted on June 6, 2014 at 1:43 pm GMT

The US dollar was on the whole weaker today against most major counterparts and the euro and pound and yen mostly consolidated gains made in the aftermath of the European Central Bank policy decision from yesterday. With the ECB out of the way, the market’s focus turned to the US nonfarm payrolls data today. The US economy added 217,000 nonfarm jobs in May, according to the US Labor Department. A Reuters poll estimated employment would rise by 218,000. Nevertheless, it [..]

Forex news – US retail sales & UK and Australian employment reports are highlights of next week

Posted on June 6, 2014 at 1:07 pm GMT

Next week is expected to be quieter and the market will most likely start the week by digesting the latest ECB decisions and the US employment report. Overall, the state of the US consumer and the employment situation in Australia and the UK, will provide the main focus of attention. A whole raft of data is also expected out of China. Starting with the euro and the Eurozone, after a cliffhanger week with inflation, unemployment and the ECB decision, the [..]

Technical Analysis – USDJPY back below Daily Ichimoku Cloud

Posted on June 6, 2014 at 7:37 am GMT

The USDJPY rally was rejected at 102.78 which has proven to be a strong resistance level and the pair has fallen back below the Ichimoku cloud on the daily chart, thereby weakening the recent bullish market structure. Prices have fallen to test what was support at 102.30 and continued lower to currently trade at 102.27. USDJPY has been in a rising channel since the May 21 low of 100.81 so it would be interesting to see if prices remain within [..]

Asian Session – Euro retakes ground lost by ECB easing

Posted on June 6, 2014 at 6:29 am GMT

Volatility was expected and it was what the markets got on Thursday, as the announcement of unprecedented loosening measures by the European Central Bank succumbed to a short-covering rally in the euro. The euro held to most of its gains this morning, trading around 1.3655, as in the immediate aftermath of the ECB meeting and Draghi’s press conference it traded in a huge range of 1.3502 to 1.3669. The ECB lowered its key interest rates, actually driving its deposit rate [..]

Forex news – ECB cuts rates, drives deposit rate negative and prepares asset purchases

Posted on June 5, 2014 at 2:03 pm GMT

The news that the ECB cut its interest rates was an important step in combating low inflation and the threat of deflation. Inflation has been steadily dropping in the Eurozone since the fall of 2011, when it had reached 3%. There were some hopes that Eurozone inflation was heading up in the right direction after April’s release of a 0.7% year-on-year rate – compared to March’s 0.5% rate. However, during May, Eurozone inflation dropped back to 0.5%, which was a [..]

European Session – Euro falls after ECB cuts interest rates

Posted on June 5, 2014 at 1:49 pm GMT

Today was one of the most highly anticipated days as markets waited for the European Central Bank policy announcement. The ECB finally eased policy as expected. Also the Bank of England held a policy meeting today, with no changes made to policy. The ECB cut the main refinancing rate to 0.15 percent versus 0.10 percent expected and took its deposit rate below zero to -0.10 percent. The decision to cut was widely expected after ECB President Mario Draghi said last [..]

Technical Analysis – GBPJPY Hourly: Pound in an uptrend but rally has stalled

Posted on June 5, 2014 at 9:46 am GMT

Pound sterling has been in an uptrend against the yen since late May as the pair has rallied from 169.5 on May 29 all the way to touch the 172 mark. 169.5, the beginning of the uptrend and the 2-month low is a major support level, while the 172 level represents resistance which has so far held as the pound has been so far been driven back from that level. Price action is comfortably above the 200- and 100-period moving [..]

Asian Session – Yen benefits from market nervousness ahead of ECB meeting

Posted on June 5, 2014 at 6:42 am GMT

The Japanese yen managed to bounce back, with the dollar retreating from its one-month high against the Japanese currency and the euro also backing off. The yen seemed to be the preferred vehicle to escape the big risk event of the ECB meeting. The dollar and the euro were trading at 102.56 and 139.51 respectively against the yen. Euro / dollar was pinned around the 1.36 level. The market was bracing for a volatile day today, as a result of [..]

Technical Analysis – S&P 500 hits record high

Posted on June 5, 2014 at 6:28 am GMT

The S&P 500 closed at another record high on Wednesday and hit as high as 1926.50. The bullish bias strengthened after prices broke above the key 1900 level on May 26. Technical indicators are bullish – the market is trading completely above the Ichimoku cloud. The Tenkan-sen and Kijun-sen lines have performed a bullish crossover at the end of April and are positively aligned, which adds to the underlying upside potential. RSI is well into bullish territory and the MACD [..]

European Session – Dollar slides after ADP jobs data, sterling rallies on PMI data

Posted on June 4, 2014 at 1:15 pm GMT

Sterling saw the most action today after rallying on upbeat UK services PMI data. The euro remains in recent ranges as investors remained on the sidelines ahead of the European Central Bank’s rate decision on Thursday. The dollar fell against the yen after disappointing US private-sector jobs data. The pound fell against the dollar in early London trading hours to test important support at 1.6700 before rallying over 65 pips to a high of 1.6766. The UK PMI data for [..]

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