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European Session – Sterling little changed after Mark Carney testimony

Posted on November 26, 2013 at 1:22 pm GMT

The main focus today was on the Bank of England inflation report hearings during which BOE Governor Mark Carney gave his testimony on the UK economy before the UK parliament’s Treasury committee. Sterling was mixed as markets tried to digest Carney’s comments that the government’s 7% unemployment rate target is merely a threshold and not a trigger for rising interest rates. The BOE attempts to give forward guidance on interest rates by linking them to an unemployment threshold, in an [..]

Technical Analysis – GBPJPY off 5-year high

Posted on November 26, 2013 at 9:55 am GMT

GBPJPY hit a 5-year high of 165.26 on Monday but the RSI was overextended at this level, reaching above the 70 level on the 4-hour chart. Hence aggressive sellers took over and forced the pair down to currently hover around a key figure level of 164.00. The 20-period moving average is also acting as support around this level. A move below this would target the next support level at 163.50. The 5-year high will prove to be a key obstacle [..]

Asian Session – Yen supported after BOJ minutes

Posted on November 26, 2013 at 7:28 am GMT

The yen took a pause from its decline against the US dollar and eked out some gains as a result of disappointing US home sales data which weighed on the greenback. Pending home sales fell to a 10-month low in October. Sales of previously-owned homes stalled because of the US government shutdown in October which delayed mortgage approvals. Pending home sales represents the change in the number of sales contracts for previously-owned homes that are still awaiting the closing transaction. [..]

US Session – US dollar eases after decline in pending home sales

Posted on November 25, 2013 at 9:37 pm GMT

Disappointing US pending home sales data sent the US dollar lower against its major counterparts, including the yen, against which it had hit a 6-month high earlier in the day. Data showed a decline in the number of contracts signed for previously-owned homes for the fifth straight month in October, down 0.6% month-to month compared to expectations for a 2.2% increased. Meanwhile the September figure was upwardly revised to show a 4.6% decline. The euro rebounded from a low of [..]

European Session – Euro off 4-year high versus yen

Posted on November 25, 2013 at 2:02 pm GMT

Risk sentiment was on in markets in general on Monday, with the Iran nuclear deal reached over the weekend lending a hand. The deal limits Iran’s nuclear activities. The absence of geopolitical risk almost always has a positive effect on markets. In currency markets, the yen, which is perceived as a safe haven currency, weakened further today. Meanwhile, Bank of Japan Governor Kuroda also helped the yen’s sell-off when he reaffirmed the Bank’s aggressive monetary easing policies are here to [..]

Technical Analysis – GBPUSD sustains upside momentum

Posted on November 25, 2013 at 12:36 pm GMT

GBPUSD is maintaining its upward momentum on the daily chart, extending a rally from the November 12 low of 1.5853 to peak at a high of 1.6239 in early Monday trading. The sustained break of the key 1.6200 psychological level has reinforced the bullish sentiment in the pair, giving scope to target the resistance area at 1.6255-1.6260. This area has been approached several times since October and will prove to be a tough obstacle to break and could keep the [..]

Forex News – The week ahead: giving thanks for not tapering yet

Posted on November 25, 2013 at 12:27 pm GMT

The main event of the week ahead will be a holiday; Thanksgiving Thursday in the United States. The holiday also signals the start of the Christmas retail season in the world’s largest economy, as big retailers will open for business on Thursday night with special offers aimed at attracting shoppers. Wednesday will be a very busy day for US economy-watchers, as the week’s data releases will need to be released before everyone rushes off to eat their traditional turkey and [..]

Technical Analysis – USJPY rallies to new 6-month high

Posted on November 25, 2013 at 8:53 am GMT

The dollar resumed its upward momentum against the yen in early Asian session trading on Monday, hitting a new 6-month high of 101.90. The yen remains under pressure after Bank of Japan Governor Kuroda reiterated today that the central bank will continue with its aggressive monetary easing program until the 2% target inflation rate is achieved. The outlook for the USDJPY pair remains bullish as suggested by technical indicators. The RSI on the daily chart is in bullish territory currently [..]

Asian Session – Yen remains bearish on BOJ Governor’s comments

Posted on November 25, 2013 at 7:20 am GMT

The yen weakened in the Asian session as bearish sentiment on the currency kept it under pressure. There were no economic data releases during today’s session except for Bank of Japan Governor Kuroda speaking again on the central bank’s monetary easing policy. Kuroda reiterated that the BOJ will maintain its aggressive asset-purchase program in coming months and years. The euro found an opportunity to charge higher to a new four-year high against the yen, peaking at 137.97, and ended with [..]

European Session – Euro surges on strong German business morale

Posted on November 22, 2013 at 1:47 pm GMT

The euro has been making a come-back in the last two days, starting its rally against the dollar and yen on Thursday when European Central Bank President Mario Draghi downplayed rumours that the ECB was considering implementing negative interest rates. The euro extended gains today after strong German Ifo data. The index measuring German business morale rose in November to an 18-month high, giving encouraging signs of steady economic growth in Europe’s largest economy. The Ifo data lifted the euro [..]

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