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European Session – Euro weighed by weak German PMI data and ECB’s Liikanen

Posted on March 24, 2014 at 2:32 pm GMT

Major currencies took their direction from fundamental stories on Monday, as markets focused on a series of Purchasing Managers’ Index (PMI) reports from various countries. The euro was weaker against the dollar after being weighed down by disappointing German PMI data. After a brief rally to a European session high of 1.3824 following stronger-than-forecast French PMIs, the euro fell back down to touch as low as 1.3762 and ended the session down 0.17% at 1.3774. German manufacturing PMI dropped to [..]

Forex News – German PMIs miss forecasts

Posted on March 24, 2014 at 12:45 pm GMT

A series of Purchasing Managers’ Index (PMI) reports were released on Monday by Markit for the month of March for the Eurozone. Particular attention was paid to the German and French PMIs. France’s manufacturing and services flash PMI readings both rose back above the 50 level which demarcates expansion from contraction. The preliminary reading of manufacturing PMI came in at 51.9 while the flash services index printed a reading of 51.4. Output and new orders returned to growth at the [..]

Technical Analysis – EURUSD medium-term uptrend takes a pause

Posted on March 24, 2014 at 7:51 am GMT

EURUSD retreated from a 2 ½ year high of 1.3966 hit on March 13 and extended lower towards the key psychological level of 1.3800. At this point, the medium term trend is still bullish as the technical indicators are not giving any sign of a trend reversal yet. RSI is above 50 and MACD is above zero. (both bullish signals). Also, there is a rising trend line and price action is above it, forming higher tops and bottoms, which suggest [..]

Asian Session – Chinese manufacturing PMI slows further, contains risk appetite

Posted on March 24, 2014 at 7:32 am GMT

The euro was more or less flat against the dollar, while the dollar posted sizeable gains against the Japanese yen during Monday’s Asian trading. The euro was buying 1.3798 dollars, while dollar / yen was at 102.47. The pound gained somewhat but remained below the 1.65 mark at 1.6486. The Chinese HSBC manufacturing flash PMI for March came in at 48.1 – posting a drop from the previous month’s 48.5 figure and lower than some expectations calling for a rebound [..]

European Session – Euro lifted by record high current account surplus, dollar trims post-FOMC gains

Posted on March 21, 2014 at 2:46 pm GMT

Currency markets were relatively quiet on Friday in the absence of major economic data releases. The dollar is set to end the week higher against most majors but gave up some post-FOMC gains. The euro moved further off a two-week low hit on Wednesday to rise higher against the dollar today. Data showing a record euro zone current account surplus in January helped support the single currency. The euro was up 0.17% against the greenback to 1.3806 in the European [..]

Forex News – Weekly review: Fed meeting was highlight of the week, underpins dollar

Posted on March 21, 2014 at 10:15 am GMT

The climax of the week was without a doubt the Federal Reserve policy meeting as well as Fed Chair Janet Yellen’s press conference. As was widely expected the Federal Reserve Open Market Committee (FOMC) announced its decision to maintain its scaling back of monthly bond buying by a further $US10 billion a month to bring the total stimulus down to $US 55 billion a month. What came as surprise to markets was Yellen’s implication that the Fed will begin to [..]

Technical Analysis – AUDUSD consolidates

Posted on March 21, 2014 at 8:18 am GMT

AUDUSD has been consolidating above the 23.6% Fibonacci retracement (0.8916) of the downleg from Oct 23 (0.9756) to Jan 24 (0.8659). The pair is currently trapped between its 200-day and 50-day moving averages. There is immediate resistance at the 38.2% Fibonacci at 0.9078 while the key psychological level at 0.9000 is an important support level in the short term. A breach of this level would see the pair move back down towards the 23.6 Fibonacci at 0.8916. All-in-all, the pair [..]

Asian Session – Majors little changed as yuan drops but Wall Street recovers

Posted on March 21, 2014 at 7:32 am GMT

The key focus of the market during the Asian session was the continued drop in the value of the Chinese yuan, but as risk assets had regained favor overnight, the impact was muted. The Chinese yuan fell to a 13-month low earlier in the session at 6.2370 against the US dollar although it managed to bounce back to 6.2270. Before this week, the People’s Bank of China had decided to widen the trading band of the yuan to plus or [..]

European Session – Dollar retains strength a day after Yellen’s comments

Posted on March 20, 2014 at 2:36 pm GMT

The dollar maintained its strength on Thursday after Fed Chair Janet Yellen’s comments on Wednesday. The prospect of tighter monetary policy in the US sooner- than- thought, resulted in a sell-off in equity markets, hurting risk appetite. During a post-FOMC statement press conference, Yellen made specific reference to when she thought the Fed would begin raising interest rates. Yellen implied in around six months after the end of the Fed’s bond buying program. This suggested that a first rate hike [..]

Forex News – Fed shifts to qualitative forward guidance, Yellen implies earlier rate hikes

Posted on March 20, 2014 at 11:03 am GMT

The Federal Reserve concluded a two-day policy meeting on Wednesday with an announcement that it will taper stimulus by a further $10 billion to $55 billion a month. While this was widely expected by the markets, what came as a surprise were comments by Fed Chair Janet Yellen. During her press conference, Yellen implied that the Fed increased its interest-rate forecasts and suggested that there was no notable change in the Fed’s outlook on the US economy. Yellen remarked that [..]

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