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Technical Analysis – GBPUSD Daily: uptrend continues; possibly eyeing 3-year high at 1.6740

Posted on January 22, 2014 at 10:08 am GMT

[caption id="attachment_12803" align="alignnone" width="550"] (click to enlarge)[/caption] As can be seen from the chart, the pound has performed particularly strongly against the US dollar during the last 6 months following the 1.47 low in early July 2013. Following a 2-year high at 1.6592 on the first trading day of 2014 (January 2nd), the pound has corrected somewhat, making a low just above 1.63. It has since rebounded, topping 1.65 following supportive economic data in the form of stronger-than-expected retail sales [..]

Asian Session – Dollar well supported as Bank of Japan keeps easy policy

Posted on January 22, 2014 at 7:58 am GMT

The dollar was well supported during today’s Asian trading but there was some volatility with respect to yen crosses following the announcement from the Bank of Japan. The Bank of Japan kept its policy unchanged and gave no hints about further loosening, which might have disappointed some market participants who were hoping for promises of extra easing. The BOJ retained its forecast that core inflation would hit 1.9% during the fiscal year that starts in April 2015. Aided by the [..]

European Session – Pound gains despite downbeat CBI trends, ZEW disappoints

Posted on January 21, 2014 at 2:48 pm GMT

The pound was the best performing major currency during the European session, despite a disappointing Confederation of British Industry trends / orders survey for January. The survey index came out at -2, whereas economists’ expectations called for a figure of 10. The pound gained 0.22% against the dollar to trade at 1.6474 nearer the 1.65 mark and euro / pound fell by 0.27% to 0.8219, closing in on the 82 pence level. The yen managed to hold its ground despite [..]

Forex News – New Zealand inflation raises chances of rate hike; kiwi benefits

Posted on January 21, 2014 at 2:00 pm GMT

[caption id="attachment_12786" align="alignnone" width="550"] (click to enlarge)[/caption] The release of inflation figures for the fourth quarter in New Zealand surprised economists as they were expecting a drop in inflation by 0.1% quarter-on-quarter. Instead, inflation rose by 0.1% and the year-on-year increase came in at 1.6%. Although the rate of annual inflation does not represent a serious issue at this point, the Reserve Bank of New Zealand likes to focus more on price pressures in the non-tradable goods and services category [..]

Technical Analysis – Gold, Daily: rebounding from the near 3 ½ low but upside maybe capped at 1268

Posted on January 21, 2014 at 10:13 am GMT

[caption id="attachment_12779" align="alignnone" width="550"] (click to enlarge)[/caption] Following a brush with the near 3 ½ year low of 1180 dollars an ounce in December last year, gold has turned higher. The rally in gold during the new year has taken the price of the yellow metal from around the 1200 level to about 1250. If gold turns down once more, the 1180 level will be the key one to watch in order for the downtrend to resume. The short-term trend [..]

Asian Session – Dollar gains against yen as Wall Street Journal article says Fed will taper next week

Posted on January 21, 2014 at 8:05 am GMT

The dollar rose against the yen but was relatively stable versus the euro during today’s Asian trading. The dollar gained 0.36% against the Japanese currency, climbing to 104.54, as strength in risk assets such as the Nikkei also hurt the yen. The euro was little changed against the dollar at 1.3549, with most of the action in this week’s sessions occurring around the 1.3550 level following the 2-month low of 1.3507 the previous day. The market is carefully watching developments [..]

European Session – Euro rebounds on EONIA rise

Posted on January 20, 2014 at 2:38 pm GMT

The euro managed to rebound from a 2-month low of 1.3508 made during the Asian session earlier, as a rise in money-market rates helped the currency to climb out of that particular hole. The overnight money-market interest rate known as EONIA jumped to 0.343%, which was much higher than the ECB’s main refinancing operations rate at 0.25%. EONIA ended the previous week at 0.30%. This however did cause some speculation that the ECB would be pushed to intervene in the [..]

Forex News – Week Ahead: flash PMI data focus point for (what should be) a quiet week

Posted on January 20, 2014 at 1:41 pm GMT

The beginning of the week could be relatively quiet because of the Martin Luther King Jr. national holiday in the United States on Monday and the lack of important data announcements out of Europe. When the US returns to work on Tuesday, there will only be a week left until the beginning of the Fed’s two-day policy meeting, which could decide to taper its asset purchase program by an additional 10 billion dollars. Therefore, there will be no Fed speakers [..]

Technical Analysis – EURGBP 4-hourly: Euro at 1-year low against pound

Posted on January 20, 2014 at 9:47 am GMT

[caption id="attachment_12755" align="alignnone" width="550"] (click to enlarge)[/caption] The pound had an interesting first few days to 2014, particularly against the euro, which is also failing to build on its good performance of 2013. The euro fell to its lowest against the pound since early January of 2013 on 9th January 2014 at 0.8229. This level represents support for now, as it held when it was tested on 9 January. There was then a recovery which raised the euro more than [..]

Asian Session – Yen, aussie benefit from Chinese GDP

Posted on January 20, 2014 at 8:03 am GMT

Most major currency pairs ended the Asian session little changed compared to Friday’s New York close, as news that Chinese 4th quarter GDP slightly exceeded expectations brought relief to the market and specifically to Asian currencies. Chinese growth for the year 2013 came in at 7.7% compared to 7.7% during 2012, beating the official target of 7.5% growth. The Chinese economy is expected to slow down somewhat to 7.4% although there are concerns that the economy could face headwinds. The [..]

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