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Forex News – US December Nonfarm payrolls disappoint but miss could be weather-related

Posted on January 10, 2014 at 3:34 pm GMT

[caption id="attachment_12437" align="alignnone" width="550"] (click to enlarge)[/caption] The announcement of much lower-than-expected nonfarm payrolls for December caused a temporary upset for the markets but its longer-term significance might prove questionable. Payrolls for December came in at only 74 thousand versus economists’ expectations of gains of 196 thousand. On a positive note, November’s nonfarm payroll figure was revised upwards to 241 thousand from 203 first reported. Although the news has ‘shock value’, it is quite plausible that some special circumstances such [..]

European Session – Dollar tumbles after weak nonfarm payrolls

Posted on January 10, 2014 at 2:21 pm GMT

The main event of the day was the release of the all-important US nonfarm payrolls report which missed forecasts and caused the dollar to tumble. The December figure came in at a mere 74,000, contrary to predictions for a number of at least 197,000. There were even some predictions for a 250,000 increase in jobs from November’s 203,000. Some attribute the disappointing number to the chilly weather in the US which dented job growth in the construction and leisure industries. [..]

Technical Analysis – Gold consolidates as downtrend stalls on daily chart

Posted on January 10, 2014 at 9:27 am GMT

Gold started the New Year on a firmer footing after bouncing off 6-month lows (1182.16) hit on December 31. Looking at the daily chart, gold has spent the last 10 days consolidating and hovering around the 23.6% retracement Fibonacci level of the move down from the October 28 high (1361.60) to the December 31 low (1182.16). It is also currently finding support from its 20-day moving average (which coincides with the 23.6% Fib). Gold has been bearish throughout 2013 but [..]

Asian Session – Dollar regains momentum ahead of nonfarm payrolls

Posted on January 10, 2014 at 8:01 am GMT

The US dollar regained its bullish momentum against the yen as markets look ahead to the nonfarm payrolls report due later in the trading day. The dollar had a volatile day on Thursday as focus switched from the European Central Bank and Bank of England policy announcements, and then US jobless claims data. As expected, both central banks kept their monetary policies unchanged, with the ECB rate at 0.25% and the BoE rate at 0.50%. The pound was somewhat steadier [..]

European Session – Sterling lifted after BoE, euro under pressure after Draghi

Posted on January 9, 2014 at 3:14 pm GMT

Thursday’s European Session was livened up with two key events – the Bank of England and European Central Bank policy announcements. Sterling jumped against the dollar after the BoE announced it held its benchmark interest at a record low 0.50% and its bond-buying target at 375 billion as expected. The central bank’s monetary policy committee (MPC) did not issue a statement after its announcement, which further benefitted the pound. The pound rose early in the session to 1.6478 on improved [..]

Forex News – Fed meeting minutes point to more tapering

Posted on January 9, 2014 at 1:14 pm GMT

The release of the minutes from the latest Federal Open Market Committee (FOMC) meeting on December 17/18 signaled that perhaps the market was underestimating the Fed’s willingness, if not to actually tighten soon, to reduce the amount of monetary stimulus. During the meeting, certain Fed Governors noted that the benefit from additional asset purchases seemed to be outweighed by certain significant and rising costs. These costs, according to participants in the meeting, were risks to financial stability as this easy [..]

Technical Analysis – EURUSD at risk from ECB

Posted on January 9, 2014 at 10:36 am GMT

The euro crossed above the key psychological 1.36 level during early European session trading today. EURUSD is at risk from key fundamentals today which could act as a catalyst to give the pair a clearer direction. Better-than-expected Euro zone business and economic sentiment released today has kept the euro supported but the stochastics are approaching overbought levels on the hourly chart so technically the upward momentum could be losing steam ahead of the European Central Bank policy meeting at 12:45pm [..]

Asian Session – Euro gains ahead of ECB, dollar mixed after FOMC

Posted on January 9, 2014 at 8:22 am GMT

The much-anticipated FOMC minutes late on Wednesday was a non-event and did not result in any strong moves for the US dollar as had been expected by some market participants. The minutes of the last Federal Reserve policy meeting in December did not reveal anything new and was more of a repeat of what Fed Chief Ben Bernanke said in a press conference following the policy meeting on December 18 when the Fed announced its decision to begin tapering. The [..]

European Session – euro retreats on record unemployment before ECB; strong US ADP

Posted on January 8, 2014 at 2:42 pm GMT

The euro found itself on the back foot during today’s European session, losing 0.24% against the dollar to drop below 1.36 at 1.3594. The euro also gave back all the gains it made against the yen during the Asian session, falling 0.38% to 104.78. The euro’s weakness came ahead of the ECB meeting on Thursday. In economic statistics, Eurozone unemployment for November came in line with expectations at 12.1%. This could mean that Eurozone unemployment has plateaued for past 6 [..]

Forex News – Eurozone on the mend say stocks, periphery bonds- will the euro benefit?

Posted on January 8, 2014 at 1:21 pm GMT

[caption id="attachment_12387" align="alignnone" width="550"] (click to enlarge)[/caption] One of the major investment themes of 2014 is expected to be increased interest in European assets. 2013 saw significant inflows into European equities as the region exited recession in the second quarter of the year. Ireland successfully exited its 3-year bailout program recently. Looking for assets that have underperformed so far during the global bull market in equities, European and certain emerging market countries appeared to fit the bill of having underperformed [..]

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