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Technical Analysis – GBPUSD at key turning point

Posted on January 29, 2014 at 9:22 am GMT

Cable traded a tight 30-pip range in the Asian session today, with congestion around 1.6582, which is the 23.6% Fibonacci retracement level of the up-leg from the January 17 low (1.6308) to the January 24 high (1.6667). This level is an important turning point for the pair which could turn to the upside or downside. GBPUSD has tested the key 1.6600 level several times in the past week but has remained capped below this strong resistance level. Tuesday’s UK Q4 [..]

Asian Session – Yen weakens after Turkey rate hike eases EM market jitters

Posted on January 29, 2014 at 7:42 am GMT

Markets were stunned by news out of Turkey late on Tuesday that its central bank decided to raise its key overnight lending rate from 7.75% to 12%. This helped bring risk appetite back to investors after last week’s panic from the emerging market turmoil. The dollar was the main beneficiary of flows and gained on the euro and the yen as investors pulled out of safe haven currencies. Last week there were fears triggered by a slowdown in China which [..]

Forex News –UK economy growing nicely Q4 statistics show

Posted on January 28, 2014 at 2:45 pm GMT

[caption id="attachment_12900" align="alignnone" width="550"] (click to enlarge)[/caption] The announcement of 4th quarter GDP growth for the United Kingdom was encouraging as it showed the economy growing by 0.7% quarter-on-quarter and 2.8% year-on-year. The quarterly growth rate of 0.7% was a touch lower than 0.8% of the previous quarter but right in line with economists’ expectations. The UK economy posted overall growth for 2013 of 1.9%, which, as the chart above shows, was the highest since 2007. 2014 is expected to [..]

European Session – Dollar dips after durable goods orders, pound regains post-GDP losses

Posted on January 28, 2014 at 2:32 pm GMT

Economic news dominated currency moves today, with UK GDP data being the main driver of sterling while US durable goods orders put a dent in the dollar’s strength. Early optimism in the pound quickly faded after fourth quarter 2013 GDP data showed that the UK economy grew at a 0.7% rate. While this was in line with forecasts, many would have preferred a stronger pace in order to be able to strengthen the case for the Bank of England to [..]

Technical Analysis – USDJPY breaches key 103.00 level, can upside move be sustained?

Posted on January 28, 2014 at 9:55 am GMT

The emerging market turmoil in recent days led to safe haven buying of the yen, putting USDJPY under pressure. As focus shifts away from EM to the Federal Reserve policy meeting this week, this is favouring the dollar again. USDJPY bounced off 7-week lows of 101.74 reached on Monday and climbed towards the key psychological level of 103.00. This key resistance level was breached in the early European session on Tuesday and acted as a catalyst for a move higher. [..]

Asian Session – Dollar supported as all eyes turn to Fed

Posted on January 28, 2014 at 7:47 am GMT

The risk-off sentiment in the currency markets has dwindled as the emerging market worries have waned for now and focus shifts to the Federal Reserve policy meeting on Wednesday. Expectations of continuation of Fed tapering has provided support for the dollar. In its last meeting in December, the Fed announced it will trim its bond purchases by $10 billion-a-month from its $85 billion program and it is expected to make further cuts at Wednesday’s meeting. After much volatility in currency [..]

European Session – Dollar rebounds as focus shifts to Fed

Posted on January 27, 2014 at 2:45 pm GMT

Currency markets began to digest the big moves occurring earlier in the day due to the emerging market sell-off and nervousness began to subside a little, allowing the dollar to recover from 2-month lows against the yen. The Japanese currency typically benefits from safe haven flows during times of risk aversion in the financial markets. Despite a broadly risk-off tone still lingering, there were no signs of panic and the 10-year US treasury yield rose for the first time in [..]

Forex News – Fed decision looms large in action-packed week

Posted on January 27, 2014 at 11:19 am GMT

Following a week that emerging markets started to face serious market pressure, a number of events is likely to have a major influence on foreign exchange trading this week. First of all, the Federal Reserve will announce on Wednesday the result of its two days of deliberations. This will be interesting for a number of reasons. For people that are sensitive to leadership changes in monetary policy, this will be the last meeting during which Ben Bernanke will be the [..]

Technical Analysis – GBPJPY falls to 1-month low, downside bias remains

Posted on January 27, 2014 at 9:41 am GMT

Risk aversion continues to buoy the yen while a less-hawkish BOE Governor Mark Carney last Friday has put sterling under pressure. This allowed for some pound weakness over the course of two sessions on Friday, following through to early Monday where GBPJPY reached a 1-month low of 167.73. After the over 400-pip plunge since Friday’s high to today’s low, the pair has found support at the 38.2% Fibonacci retracement of the move from the November 2013 low (156.61) to the [..]

Asian Session – Yen buoyed by safe haven flows, gains limited by Japan trade deficit

Posted on January 27, 2014 at 7:39 am GMT

The sell – off in emerging markets continued to dominate market sentiment as the new trading week got underway. Last week’s risk aversion flowed to today’s Asian session, helping the yen gain on safe haven demand. Meanwhile, the public holiday in Australia today resulted in thin trading volumes. Soft data from China is also keeping sentiment damp as concerns grow over a sharper economic slowdown in the world’s largest economy. The US dollar fell early in the session to its [..]

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