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Technical Analysis – Gold below 1300 for 3rd week

Posted on December 2, 2013 at 2:49 pm GMT

Gold prices have been trading below the key 1300 an ounce over 3 weeks, since November 11. Gold dropped further on Monday to touch a low of 1227.64 an ounce by later European session trading hours. Fundamentals have resulted in an increasingly bearish sentiment on the precious metal as speculation of Fed tapering is dampening gold’s appeal as a hedge against inflation. On the daily chart, gold remains in a downtrend. Repeated failure to breach 1260 (since November 21) has [..]

European Session – Euro reverses after hitting 1.36

Posted on December 2, 2013 at 1:50 pm GMT

The euro made a big reversal after failing to sustain a break above 1.36 against the dollar and tumbled 0.44% to 1.3539. Despite mostly better-than-forecast November Euro zone PMIs released today, readings from Spain and France remained in contraction territory. Meanwhile, market participants are also awaiting the European Central Bank policy decision on Thursday. The UK released above-forecast manufacturing PMI data today which reached the highest since February 2011, giving sterling a boost especially against the euro. The pound gained [..]

Technical Analysis – GBPUSD remains bullish after UK manufacturing PMI

Posted on December 2, 2013 at 9:41 am GMT

GBPUSD has been rising steadily since the November 12, 2013 low of 1.5853 to a fresh 2-year high of 1.6441 in the Asian session today. UK manufacturing PMI for November was released today with a much-better-than expected reading of 58.4, up from the October reading of 56.0. Sentiment on the pound is overall bullish especially since the recent string of positive UK economic data, which raises expectations of early monetary policy tightening by the Bank of England in the near [..]

Forex News – Busy week ahead to reach crescendo with US employment report

Posted on December 2, 2013 at 9:31 am GMT

It will be quite a busy week, full of economic data, releases and central bank events and speeches; in contrast to the relatively quiet previous week that featured the Thanksgiving holiday. Starting with Monday, November Manufacturing PMI business confidence survey data were released better-than-expected from the Eurozone and the United Kingdom. Later during the day, the respective survey from the United States will come out. The ISM manufacturing number from the the US will also be released later on. The [..]

Asian Session – Aussie rises on China PMI

Posted on December 2, 2013 at 7:59 am GMT

Economic data was minimal in Monday’s Asian session, with the only tier one data being from China. Official China Manufacturing PMI data were released on Sunday and the HSBC Final Manufacturing PMI today caused big moves for the Australian dollar. China is Australia’s major trading partner so the aussie jumped on news that the world’s second largest economy maintained a steady growth momentum in November. The official data showed manufacturing held at an 18-month high at 51.4, while the private [..]

European Session – Euro steady above 1.36 after Eurozone inflation and jobs data

Posted on November 29, 2013 at 1:50 pm GMT

Currency markets were relatively quiet in the European session on Friday in thin trading volumes due to the upcoming weekend. The euro hovered near one-month highs against the dollar after higher than expected CPI data from the Eurozone and a marginal drop in the region’s unemployment rate for the first time in over three years to 12.1%. The upbeat data eases concerns about deflationary pressures in the region and should dampen expectations of more policy easing by the European Central [..]

Forex News – Euro zone unemployment falls for first time in 4-years

Posted on November 29, 2013 at 1:00 pm GMT

Unemployment in the Euro zone has hovered above 12% since the beginning of this year. Data released by Eurostat today show that the jobless rate fell in October to 12.1% from the prior month’s record high 12.2%. This was slightly below expectations for the rate to remain unchanged. This is the first time in three years that unemployment has fallen in the 17 countries of the Euro zone. The last decline was in early 2011 when unemployment fell to just [..]

Technical Analysis – EURGBP bearish weekly outlook

Posted on November 29, 2013 at 10:07 am GMT

Sentiment on EURGBP is bearish, after successive lower peaks and lower troughs since February. The pair is currently at 0.8330 in mid- European session trading on Friday after breaking below the 38.2% Fibonacci level of the move from the July 22,2012 low at 0.7755 to the February 24,2013 high at 0.8814 based on the weekly chart. Current technical studies show the RSI in bearish territory at 41. The RSI has been steadily declining since late January. There is scope for [..]

Asian Session – Euro peaks at 5-year high against yen

Posted on November 29, 2013 at 8:01 am GMT

The euro ticked up to a 5-year high against the yen in Friday’s Asian session and is set to end the week as one of the best performing currencies. The yen has lost over 4% against the euro on the month. The dollar hit a fresh 6-month high versus the yen early in the session. Yen weakness is being caused by investors selling this low yielding currency to be able to fund carry trades against higher yielding currencies. Meanwhile, data [..]

US Session – Sterling edges up to new 11-month high in quiet Thanksgiving holiday trading

Posted on November 28, 2013 at 7:47 pm GMT

Most major currency pairs were trading in a range in holiday-thinned US markets which were closed for the Thanksgiving holiday on Thursday. Sterling was the only currency that moved to break its previous session highs, reaching a new 11-month high of 1.6356. The pound gained 0.3% on the day on news that the Bank of England supports a move to make changes to the “Funding for Lending Scheme” and to withdraw support for mortgages in the UK. This scaling back [..]

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