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Asian Session – Yen lifted after Bank of Japan leaves policy unchanged

Posted on May 21, 2014 at 6:12 am GMT

The Bank of Japan left monetary policy unchanged as expected, after concluding a two-day policy meeting today. It said it expects a moderate economic recovery to continue. This helped lend support to the yen and held the dollar near a 3-1/2-month low. Focus will be on BoJ Governor Kuroda’s speech later in the day. The BoJ said it will continue with its current stimulus program and will buy about 7 trillion yen of sovereign debt a month. Few market participants [..]

European Session – Sterling jumps on UK CPI, yen supported ahead of BOJ

Posted on May 20, 2014 at 1:23 pm GMT

Sterling saw demand after UK inflation data, while the euro came under pressure as expectation mounts for the European Central Bank to ease policy when it meets next month. The pound rallied after UK CPI figures rose more-than-expected in April to 1.8% nearing the Bank of England’s 2% target rate. Cable hit a high of 1.6864 before steadying around 1.6830. The euro fell to its lowest since early January 2013 to 81.18 pence. A key risk event for the pound [..]

Forex News – UK inflation rises above-forecast but below BOE target

Posted on May 20, 2014 at 10:32 am GMT

UK headline inflation rose above-forecasts in April to an annual rate of 1.8 percent from 1.6 percent in March. The figure was below the Bank of England’s target rate of 2 percent but has moved off its lowest level in more than four years. Expectations were for a reading of 1.7 percent. The Easter holidays pushed up the cost of traveling, leading to higher airfares and other transport costs, including a stronger reading of fuel prices compared with a year [..]

Technical Analysis – USDJPY bearish below Ichimoku cloud

Posted on May 20, 2014 at 8:16 am GMT

USDJPY has found support at the 100-day moving average around 101.20. Next support is seen at 101.74 (February 4 low). The market remains below the Ichimoku cloud on the daily chart and the tenkan-sen and kijun-sen are negatively aligned, adding to the bearish bias. RSI is in bearish territory below 50, signaling possible further downside. To the upside, major barriers exist at 103.00 and 104.11. Overall, the pair has remained within a broader range since early February, trading between 104.11 [..]

Asian Session – Australian dollar tumbles after dovish RBA minutes

Posted on May 20, 2014 at 6:35 am GMT

The Australian dollar fell after the Reserve Bank of Australia released its May 6 policy meeting minutes today. This caused volatility in the aussie as the central bank signaled it was likely to maintain record-low interest rates. Adding pressure to the Australian dollar was a report from rating agency Standard & Poor’s warning that Australia could lose its triple-A rating should the government fail to realise large cuts to the budget in coming years. The aussie fell to 0.9306, moving [..]

European Session – Sterling steady ahead of UK inflation data

Posted on May 19, 2014 at 1:44 pm GMT

The currency markets were relatively quiet today amid the lack of any fundamental data from both the Eurozone and the US. The dollar weakened against the yen today, falling to as low as 101.09 yen after breaking a key support level of 101.30. Sterling will be in focus this week due to a raft of important data from the UK. April CPI figures are due on Tuesday, Bank of England minutes and UK retail sales on Wednesday. First quarter preliminary [..]

Forex News – Euro under pressure as Draghi expected to take action

Posted on May 19, 2014 at 10:14 am GMT

The euro has fallen from more-than-2-year highs above 1.39 to test the 1.37 level. The main cause of the single currency’s recent weakness was due to growing expectations that the European Central Bank president will ease monetary policy in June after ECB President Mario Draghi said on May 8 that officials are “comfortable” with acting then. Draghi indicated that any worsening of the medium-term inflation outlook would warrant broad-based asset purchases. As a result, market participants are preparing for a [..]

Technical Analysis – EURUSD bearish below Ichimoku cloud

Posted on May 19, 2014 at 8:29 am GMT

EURUSD has retraced from a high of 1.3992 and has resumed a bearish bias on the daily chart. The market fell back below the daily Ichimoku cloud, while the RSI has also fallen into bearish territory below 50. Key support at 1.3647 (May 15 low) has held but a break below this would target next support at 1.3476 (February 3 low). A further move below this would bring back the bearish trend. A potential double top is forming while prices [..]

Asian Session – Yen supported by strong Japanese machinery orders

Posted on May 19, 2014 at 6:04 am GMT

The yen traded near 8-week highs versus the dollar, holding in a steady range during the Asian session on Monday. Data showed that Japan’s core machinery orders jumped 19.1 percent in March from the previous month, and beat forecasts for a 6.0 percent rise. The data signals that Japanese businesses are more confident about investing. The greenback traded at 101.44 yen, down about 0.1 percent and not far from a two-month low of 101.31 yen set on Thursday. The euro [..]

European Session – Euro weak versus dollar, remains below 1.38

Posted on May 16, 2014 at 1:52 pm GMT

Most of Friday’s currency action was based on consolidating the week’s moves in the absence of key data releases, while there was some positioning ahead of the weekend. Sterling was set for its biggest weekly decline against the dollar in six weeks. Cable was flat most of the day before rising slightly to a high of 1.6830. Weighing on the pound was a shift in expectations on when the Bank of England will raise interest rates. This was a result [..]

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