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Forex News – Weekly Review – FOMC minutes, PMIs from China, Eurozone and US grabbed attention

Posted on May 23, 2014 at 12:39 pm GMT

The past week was filled with important data from all corners of the global economy, stemming from the US China, Europe and the UK. On Wednesday the markets turned their focus towards the FOMC minutes. The dovish tone of the minutes was reflected in the dollar which fell following their release. The minutes showed that the Fed looked at an exit strategy from stimulus. Other than that, nothing new was revealed and the view remains that the Fed will continue [..]

Technical Analysis – EURUSD downside pressure remains

Posted on May 23, 2014 at 7:54 am GMT

EURUSD has fallen back below the Ichimoku cloud and is testing support at 1.3633 (May 21 low) and the 200-day moving average. The pair remains under pressure and RSI is in bearish territory below 50. Tenkan-sen and kijun-sen are negatively aligned, adding to the downside bias. A break and close below the 1.3633 support will accelerate the decline to target 1.3562 and then 1.3476 (February 3 low). To the upside, barriers are found at 1.3720 (lower cloud level) and at [..]

Asian Session – Dollar holds gains after US data, euro weak ahead of German Ifo

Posted on May 23, 2014 at 6:26 am GMT

The dollar consolidated gains versus the yen after hitting a one-week high on upbeat US housing and factory activity data. The US Manufacturing Purchasing Managers Index (PMI) released yesterday beat forecasts to rise in May, printing a reading of 56.2 from 55.4 in April. Expectations were only for a slight increase to 55.5. Separate data showed US existing home sales rose in April giving promising signs for the housing market. The dollar hit as high as 101.84 yen in Asian [..]

European Session – Euro falls on unimpressive Eurozone PMI, dollar falls after jobless claims

Posted on May 22, 2014 at 1:23 pm GMT

The euro came under pressure after broadly weaker purchasing managers’ index surveys. The overall Eurozone flash manufacturing PMI fell more than expected in May to 52.5 from 53.4 in April. The services PMI was somewhat stronger than expected at 53.5 from 53.1 in April. As a result, the composite index fell to 53.9 in May from 54.0 in April, but was in line with expectations. French PMI data were disappointing as the figures remained in contraction territory below 50 but [..]

Technical Analysis – EURCHF rises above cloud, scope for move higher

Posted on May 22, 2014 at 9:04 am GMT

EURCHF is now trading at an important level after having broken above the Ichimoku cloud on the daily chart. Also prices have risen above the 38.2% Fibonacci retracement level (1.2213) of the downleg from 1.2393 (January 8 high) to 1.2102 (March 3) low). Technical indicators are suggesting a potential for a continuation of the recent rally from May 6. Tenkan-sen and kijun-sen are positively aligned giving scope for a move higher to 1.2236, which is Tuesday’s high. RSI is in [..]

Forex News – Chinese manufacturing activity expands the most in 5-months

Posted on May 22, 2014 at 8:25 am GMT

Manufacturing activity in China showed signs of growth in May, helping lift risk appetite in markets today. The upbeat reading on China’s purchasing managers index (PMI) blunted some of the recent concerns of slowing growth in the world’s second-largest economy. A survey compiled by HSBC and Markit showed that a preliminary reading of the PMI rebounded in May to hit a five-month high of 49.7, up from 48.1 in April. The PMI indicator is designed to provide a snapshot of [..]

Asian Session – Chinese PMI lifts risk appetite, yen weakens

Posted on May 22, 2014 at 6:37 am GMT

The yen weakened against the dollar as risk appetite increased following encouraging manufacturing data from China. Adding to upbeat market sentiment were the Federal Reserve meeting minutes from yesterday which showed policy makers do not see a big risk of inflation from continued stimulus. The HSBC flash China manufacturing purchasing managers’ index (PMI) rose to 49.7 in May from 48.1 in April. While the figure was below the 50 level which is still in contraction territory, the reading beat economists’ [..]

European Session – Sterling jumps on strong UK retail sales

Posted on May 21, 2014 at 1:27 pm GMT

Sterling was the biggest mover today after UK retail sales surprised on the upside and beat expectations by far. Retail sales in April jumped by 6.9 % on the year and 1.3 % on the month to beat forecasts of 5.2 % on an annual basis and 0.5 % on a monthly basis. Adding to the pound’s strength were the Bank of England minutes released today which leaned to the hawkish side. Also the MPC voting results showed signs some [..]

Forex News – Bank of Japan holds current policy while Japanese economy improves

Posted on May 21, 2014 at 8:52 am GMT

The Bank of Japan announced after concluding a two-day policy meeting today that it will continue with stimulus measures but refrained from adding additional quantitative easing measures. The central bank will continue with buying about 7 trillion yen of sovereign debt a month to expand the monetary base, citing that the current QE program has been working and expects the target inflation rate of 2% to be achieved. The Bank’s Governor Haruhiko Kuroda in a speech today expressed optimism on [..]

Technical Analysis – AUDUSD bearish after entering cloud

Posted on May 21, 2014 at 8:29 am GMT

AUDUSD is bearish and has entered into the Ichimoku cloud after breaking below key support at 0.9330. Technical indicators show potential for further downside on the daily chart – tenkan-sen and kijun-sen are negatively aligned and the RSI has fallen below 50. Prices are at 0.9230 after having broken below the 23.6% Fibonacci retracement of the upleg from 0.8659 (January 24 low) to 0.9460 (April 10 high). The key support zone is found between 0.9150-70 and a break below this [..]

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