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Asian Session – Euro under pressure on expectations of ECB easing

Posted on May 14, 2014 at 6:29 am GMT

The euro remained near one-month lows on speculation that the European Central Bank will expand stimulus next month. Weighing on the euro was also a disappointing German ZEW investor sentiment survey which increased the likelihood that the ECB has reason to take further action at its next policy meeting. Investor confidence in Europe’s largest economy fell for the fifth consecutive month in May according to a report released yesterday. Adding to the view of more ECB easing were reports that [..]

European Session – Euro falls to 1-month low versus dollar

Posted on May 9, 2014 at 1:06 pm GMT

Friday’s trading was directed by profit taking and positioning into the weekend. With no major data releases on the calendar today the markets digested the events from Thursday when ECB President Mario Draghi raised expectations of policy action in June. This kept attention on the euro today which extended losses against the dollar to a 1-month low of 1.3768. Prior to Draghi’s remarks yesterday, the euro hit as high as 1.3992, a more-than-2-year high. Meanwhile, disappointing data from Germany today [..]

Forex News – Weekly Review – ECB highlight of the week, EUR takes a hit from Draghi

Posted on May 9, 2014 at 12:09 pm GMT

The highlight of this week was the European Central Bank President Mario Draghi’s press conference. While the ECB was expected to hold its main refinancing rate at 0.25%, what took markets by surprise was Mr. Draghi’s comments that suggested the governing council would be “comfortable with acting next time. ” This led markets to interpret this as by the next meeting in June, and the bank would implement some form of stimulus measures, either in the form of an interest [..]

Technical Analysis – USDJPY scope for move higher?

Posted on May 9, 2014 at 8:23 am GMT

USDJPY has been range-bound since early February on the daily chart and has not shown any clear direction yet. In the long-term outlook there is scope for the prior bullish trend to resume. The 101.20 level is expected to provide strong support as it has been retested several times and has held well. Below this key support, the 100.75 level is another important support level. To the upside, 103.00 is a key barrier which if breached will open the way [..]

Asian Session – Euro under pressure on expectations of ECB policy easing

Posted on May 9, 2014 at 6:38 am GMT

The euro remained under pressure against the dollar after comments from European Central Bank President Mario Draghi were interpreted to be an indication that the central bank was ready to implement new stimulus measures soon. Mr. Draghi’s comments came after the ECB announced its decision to keep the benchmark interest rate (refinancing rate) on hold at 0.25%. The euro climbed to a more-than-2-year high of 1.3992 after the rate announcement but plunged some 160 pips since then to a low [..]

European Session – Euro rallies to 2-year high after ECB before tumbling after Draghi presser

Posted on May 8, 2014 at 2:00 pm GMT

The main market focus today was on the two central bank meetings – the European Central Bank and the Bank of England. The ECB held its main interest rate at a record low 0.25% for the sixth month in a row as expected. Its bond buying programme was also left unchanged even as the economic recovery in the Eurozone continues to gain momentum. The euro rallied to a more-than-2-year high after the announcement to trade at 1.3992 before tumbling down [..]

Technical Analysis – EURUSD bullish, indicators show upside momentum

Posted on May 8, 2014 at 9:37 am GMT

Most of the technical indicators are bullish on the 4-hour chart, indicating further upside potential exists. RSI is rising and approaching 70 while MACD is above zero. The stochastic is rising. The market is well above the Ichimoku cloud, while the tenkan-sen and kijun-sen are positively aligned. EURUSD is currently at 1.3936 and there is scope to test the 1.3950 high from May 6. A move higher would target the March 13 high of 1.3966. To the downside, support will [..]

Forex News – Do Putin’s latest statements on Ukraine signal a de-escalation of geopolitical risk?

Posted on May 8, 2014 at 9:24 am GMT

The emergence of geopolitical risk from Ukraine following the overthrow of the previous pro-Russian government, Russia’s annexation of Crimea and the slide towards civil war in Eastern Ukraine as well as the threat of a Russian invasion there, have created the worst geopolitical crisis between East and West since the end of the cold war. The worry about developments in Ukraine was not the main headline affecting financial markets during the past few weeks, but it was at the back [..]

Technical Analysis – USDJPY capped below 102

Posted on May 8, 2014 at 8:13 am GMT

USDJPY is capped below the key 102.00 level and well supported at 101.70. On the 4-hour chart, the market has been trading below the Ichimoku cloud all week and the tenkan-sen and kijun sen lines are negatively aligned, adding to the bearish bias. The RSI is below 50, indicating further downside potential exists. The market is below the 100-period moving average, which is a bearish signal. If the 101.70 support level fails to hold, prices will target next support at [..]

Asian Session – Euro steady at 7-week high ahead of ECB, dollar heavy after Yellen

Posted on May 8, 2014 at 6:50 am GMT

The US dollar remained weak after Fed chair Yellen’s dovish testimony to the Joint Economic Committee of the US Congress where she indicated a high degree of monetary accommodation remains warranted. She did however note that the Fed expects a decent pick up in economic activity in the second quarter. US 10-year Treasury yields remained low, keeping the dollar near a 7-week low against the yen and versus the euro. In other news overnight, China produced better- than-expected trade data, [..]

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