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Forex News – US 1st quarter revision negative but it looks in the rear-view mirror

Posted on May 29, 2014 at 2:09 pm GMT

The news that the US economy contracted by a 1% annualized rate during the first quarter was negative but it had little influence on financial markets. The estimate compared to a 0.5% contraction expected by economists while the initial estimate was an expansion of 0.1%. It was the worst growth performance for the US economy since the first quarter of 2011. There were some special one-off factors that drove growth to such a low level during the first quarter and the US [..]

European Session – Euro at 3-month lows, dollar rises despite soft US GDP

Posted on May 29, 2014 at 1:36 pm GMT

Trading volumes were thin during most of the European session due to the Ascension Day holiday in Europe today keeping many markets in the region closed. Also, investors were waiting for key US GDP data later in the day. Bigger moves for the US dollar followed the data. The euro touched a fresh 3-month low versus the dollar today at 1.3585 on expectations of ECB easing next week while sterling dipped to a 6-week low of 1.6692. The pound has [..]

Technical Analysis – USDJPY turns down, sees support at 200dma

Posted on May 29, 2014 at 7:04 am GMT

USDJPY has been creating lower tops and lower bottoms this past month. The market structure remains bearish below the Ichimoku cloud on the daily chart. The tenkan-sen and kijun-sen are negatively aligned, while RSI is below 50, adding to the bearish bias. Key support is seen at the 200-day moving average at 101.30 and below this at 101.75 (February 4 low). To the upside, resistance is seen at 102.36 (cloud bottom) and 103.00 (May 2 high). The longer term trend [..]

Asian Session – Yen benefits from weakness in euro, dollar

Posted on May 29, 2014 at 6:30 am GMT

The euro was trying to hold on to the 1.36 level, while both the euro and the dollar receded against the Japanese yen; at 138.31 and 101.66 respectively. The pound continued to find itself under pressure and traded at 1.6721 – although it was up a little during the Asian session. Traders were taking profits after a long climb by the pound and as the Bank of England’s quarterly inflation report a couple of weeks ago did not make a [..]

European Session – Euro slides on weak German jobs and EZ money supply data

Posted on May 28, 2014 at 1:23 pm GMT

The euro was under pressure against the dollar today, helped by disappointing German employment data. There was a surprising loss of 24,000 jobs in May (seasonally adjusted), while estimates were for a smaller decline of about 15,000. Also weighing on the single currency were data on the Eurozone money supply. The M3 money supply grew by a mere 0.8% in April, which is the slowest since September 2010. The euro fell below the May 27 low and touched the key [..]

Forex News – Economic indicators improving but will the Fed take note?

Posted on May 28, 2014 at 11:30 am GMT

The latest economic figures out of the United States have shown a generally positive picture for the world’s economy. Figures on manufacturing orders and consumer confidence as well as rising home prices, provide support for the case of a pickup in growth for the rest of the year after a dismal first quarter because of the weather-related slowdown. Durable goods orders came in stronger-than-expected rising by 0.8% month-on-month compared to analyst expectations of a 0.5% drop. The forecasted drop had [..]

Technical Analysis – EURGBP bearish

Posted on May 28, 2014 at 9:35 am GMT

EURGBP is in a downtrend. On the 4-hour chart prices have found support at 0.8080 and there has been a slight correction to the upside, to attempt to penetrate into the Ichimoku cloud on the 4-hour chart. RSI has turned positive and the stochastic is near overbought territory. The upside momentum could fade as the cloud will likely act as an important barrier to the upside. Prices have turned back down after reaching a high of 0.8128. Support is seen [..]

Technical Analysis – S&P 500 hits record high

Posted on May 28, 2014 at 6:44 am GMT

The S&P hit a new record high today, currently at 1911 and has scope for more gains. The bullish bias remains intact while the tenkan-sen and kijun-sen are positively aligned and the market remains high above the Ichimoku cloud on the daily chart. Other technical indicators are bullish, such as the RSI and MACD, adding to the upside potential. Also, prices are above the 100-day moving average. The S&P broke above a key level of 1898 on Monday and has [..]

Asian Session – Dollar and stocks helped by data; gold crashes

Posted on May 28, 2014 at 6:35 am GMT

Major currency pairs remained in narrow ranges for most of the Asian session on the absence of significant news and developments. The US dollar managed to keep the gains it made from the previous sessions as better-than-expected data helped the greenback. The euro was trading around 1.3630 – inside its latest 1.3611-1.3665 range, but the dollar was unable to break higher against the Japanese yen, with the 102 level presenting some resistance. The pound was under pressure as there were [..]

European Session – US Durable Goods Orders lift dollar

Posted on May 27, 2014 at 1:42 pm GMT

There were no major data releases in the European session today, keeping the market’s focus on ECB President Draghi’s comments from Monday when he signaled that there may be a need for monetary action sooner rather than later. Draghi suggested that the ECB could consider implementing policy tools in the form of interest rate cuts or further quantitative easing in next month’s monetary policy meeting, especially with a prolonged period of inflation and weak lending remaining a key threat to [..]

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