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Asian Session – Dollar remains under pressure, sterling hits 4-year high

Posted on February 17, 2014 at 8:08 am GMT

Japan’s GDP data were the main focus of the Asian session on Monday. The Japanese economy grew at a slower pace in the fourth quarter, at an annualized 1% versus a 2.8% expected. Third quarter GDP was at 1.1%.The weaker-than-expected figure initially dampened risk appetite and caused a drop in Tokyo’s Nikkei, which initially lifted the yen. Risk aversion coupled with broad dollar weakness, pressured the dollar/yen pair to a low of 101.37 from Friday’s close of 101.78. The [..]

Forex News – Yellen, BOJ, UK unemployment and Eurozone flash PMIs in week ahead

Posted on February 14, 2014 at 3:06 pm GMT

Looking ahead it will be a relatively busy week, with important events and releases for the Japanese yen, the British pound and the euro. Strangely enough it will perhaps not be as important for the US dollar although some US events will need to watched. The week will start relatively quietly as Monday is a holiday in the United States. The most important data will come out of Japan, with preliminary 4th quarter GDP. This will be the last of [..]

European Session – Euro boosted by upbeat GDP, pound hits new 3-year high

Posted on February 14, 2014 at 2:30 pm GMT

The euro and the sterling were the best performers during the week, rallying against a broadly weaker dollar which came under pressure as a result of soft US data this week. The dollar only got temporary relief earlier in the week following new Fed Chair Janet Yellen’s testimony at a Congressional sub-committee hearing in which she signaled continuity in the Fed’s tapering of the bond buying program. A series of disappointing releases on US retail sales and jobless claims numbers [..]

Technical Analysis – EURUSD spikes to 1.37

Posted on February 14, 2014 at 9:51 am GMT

EURUSD broke a resistance level at 1.3691 on Friday to reach 1.3712, opening the path for a move higher towards the next resistance level (R1) at 1.3738 (January 24 high). Failure to breach this level would reinstate the downside bias the pair has in the long term. In the past 3 weeks, the pair has been trading in a range between 1.34-1.38 and has recently retraced more than 78.6% of the move down from the January 24 high (1.3738) to [..]

Asian Session – Dollar hits 3-week low versus euro on weak US data, gold above 1300

Posted on February 14, 2014 at 7:55 am GMT

Weak US data kept the dollar under pressure, pushing it to three-week lows against the euro. Meanwhile, inflation data from China also led to some caution in the markets, resulting in safe haven demand for the yen. US retail sales numbers in January missed forecasts while weekly jobless claims rose last week. Chinese consumer inflation was at a 7-month low in January, increasing 2.5%. While this was more-or-less in line with expectations, it was hoped that inflation in the world’s [..]

European Session – Euro and sterling rise after weak US data hurt dollar

Posted on February 13, 2014 at 2:18 pm GMT

The main theme of the currency markets today was dollar weakness, which built up throughout the European session and culminated with the release of soft US retail sales data as well as disappointing weekly jobless claims numbers. Retail sales fell 0.4% in January, led by a drop in automobile sales. They were expected to remain flat. December sales fell by a revised 0.1%. Meanwhile, retail sales excluding autos came in worse than forecast and were flat in January. Most analysts [..]

Forex News – Bank of England revises guidance and raises UK growth outlook

Posted on February 13, 2014 at 11:14 am GMT

Mark Carney’s press conference and the Bank’s quarterly inflation report were the key events of the week for the pound. They both certainly lived up to expectations as the currency rallied strongly on the back of new forecasts made in the report and Mark Carney’s appearance. Going into the conference, the key question was what the Bank was going to do about the ‘pleasant’ sort of headache of UK unemployment falling much faster than anticipated. Back in July of 2013, [..]

Technical Analysis – EURGBP bearish

Posted on February 13, 2014 at 8:58 am GMT

EURGBP is in a downward channel since falling from the July 2013 high (0.8767) to the January low (0.8167). The pair has been hovering just above this low for the past three weeks and any upside moves have met resistance provided by the 23.6% Fibonacci retracement level of the July-January down-leg. The upper channel line as well as the 20-period moving average is also capping the pair. The stochastic is falling and is currently at 35, indicating bearishness. As long [..]

Asian Session – US dollar broadly weaker, aussie down on poor jobs numbers

Posted on February 13, 2014 at 7:49 am GMT

The Australian dollar tumbled across the board following weak jobs data. The Australian economy lost 3,700 jobs in January, which came on top of a slight downward revision in December’s figures. This resulted in raising the unemployment rate to the highest level since July 2003, at 6%. The data disappointed economists who expected a rebound after a surprise fall in employed in December. The aussie tumbled almost 1% against the US dollar in reaction to the soft data, ending the [..]

European Session – Euro tumbles on speculation of negative rates, all eyes on Draghi

Posted on February 12, 2014 at 2:53 pm GMT

The main developments during the European session were weakness in the euro and strength in the British pound as a result of key fundamental news releases today. The euro tumbled against the dollar as European Central Bank Executive Board member Benoit Coeure signaled the ECB may impose negative deposit rates. In an interview with Reuters, the top ECB policy maker made the following comment in reference to interest rates: “That is something we are considering very seriously. But you should [..]

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