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Forex News – German business sentiment improves in November

Posted on November 22, 2013 at 11:58 am GMT

Europe’s largest economy is showing signs of steady recovery according to the Ifo Index of German business sentiment realeased today which hit a new 18-month high in November. The latest reading of the Ifo business climate index jumped to 109.3 compared to October’s 107.4 reading and beat expectations for a rise to 107.7. The stronger numbers suggest fourth quarter GDP in Germany could expand further. Ifo president Hans-Werner Sinn said the German economy was looking ahead to the winter months [..]

Technical Analysis – EURJPY bullish momentum

Posted on November 22, 2013 at 10:06 am GMT

EURJPY is strongly bullish at a 4-year high and is trading above its uptrend line from June 13 of this year. Prices are also above the 100-day moving average. EURJPY broke Thursday’s high of 136.54 and extended higher in early European session trading breaching 136.70. The euro was given a boost by upbeat German Ifo data. Meanwhile yen is under pressure after BOJ Governor Kuroda’s spoke today on monetary policy. On the Daily chart, EURJPY is targeting 138.50, a level [..]

Asian Session – Yen remains under pressure after Kuroda speaks on BOJ monetary policy

Posted on November 22, 2013 at 7:27 am GMT

The yen weakened further today after comments by Bank of Japan Governor Kuroda who spoke before a committee today and reiterated that the central bank’s pledge to fight deflation with easy monetary policy. The euro reached a four-year high against the yen in early Asian session trading, peaking at 136.54 before ending the session at 136.19. The dollar hit a four-month high of 101.34. The BOJ’s policy stance tends to weaken the yen. Meanwhile there is growing speculation that the [..]

US Session – US dollar rises above 101 yen

Posted on November 21, 2013 at 9:14 pm GMT

The dollar extended higher against the yen to break above 101 yen for the first time since July 7 after being boosted by better US jobless claims data today. This was positive for the US dollar because the data revealed that a recovery was taking place in the American labour market and raises expectations for Fed tapering to come sooner since the decision to scale back stimulus is going to depend on economic data. Initial weekly jobless claims for last [..]

Forex News – Eurozone PMIs raise deflation fears in region

Posted on November 21, 2013 at 2:19 pm GMT

The Purchasing Managers’ Indices (PMI) for the manufacturing and services sectors in the Eurozone were released today, suggesting business activity in the region is still slow overall. Markit’s November flash composite PMI dropped for a second straight month to 51.5 in November, down from 51.9 in October. While this is still in expansionary territory, forecasts were for a rise to 52.0. As the index moves in the opposite direction, concerns are growing that the economic recovery in the Eurozone is [..]

European Session – Euro rebounds after Draghi eases negative rate fears

Posted on November 21, 2013 at 1:20 pm GMT

The euro surprisingly spiked higher after ECB President Mario Draghi’s speech today in which he played down the idea that negative deposit rates could come soon. Recent market rumours suggested that the ECB could cut rates to a negative 0.1% but Draghi said today that since the ECB policy meeting was held, when negative rates were discussed, there have not been any accelerated plans to undertake such a measure. The euro reversed earlier losses when it fell following disappointing PMI [..]

Technical Analysis – Gold looking bearish after FOMC

Posted on November 21, 2013 at 9:46 am GMT

Bearish sentiment in gold was reinforced after the FOMC minutes which were released on Wednesday and which reflected the possibility that the Federal Reserve could take action to begin tapering stimulus in the coming meetings. Since August, gold has resumed a downtrend, falling from 1433 and is currently trading below the key 1250 level on the daily chart after tumbling to a four-month low of 1241 following the FOMC minutes on Wednesday. Breaking below this key support level of 1250 [..]

Asian Session – Yen at 4-month low versus dollar after BOJ and FOMC

Posted on November 21, 2013 at 7:50 am GMT

The yen weakened to the lowest level in four months against the dollar after the Bank of Japan policy meeting as well due to the FOMC minutes which boosted the greenback. USDJPY climbed to an Asian session high of 100.80 yen and ended the session with a 0.6% gain at 100.70 yen. The diverging monetary policies between the BOJ and the Fed are expected to push the dollar/yen pair higher in the long term. The Bank of Japan left its [..]

US Session – Euro drops hard on negative ECB deposit rate talk

Posted on November 20, 2013 at 8:32 pm GMT

The euro slumped against the US dollar, dropping 0.72% to trade at 1.3420, after reports that the ECB was considering reducing the deposit rate to negative territory. The deposit rate is the interest rate which banks earn on excess balances placed with the ECB. It is currently at zero and the discussions involve a reduction of the rate to -0.1%. A negative interest rate would be an unprecedented step in the effort to revive the Eurozone economy. This step could [..]

European Session – Dollar mixed as euro unable to hold recent gains

Posted on November 20, 2013 at 1:15 pm GMT

The US dollar rebounded following weakness because of Fed Chairman Ben Bernanke’s speech last night. The euro lost 0.16% against the US dollar to trade at 1.3518. The dollar was down against the yen however, losing 0.14% and dropping slightly below the 100 yen mark to 99.95. In the main news item of the day, the Bank of England minutes contained an upbeat assessment of the UK economy, particularly with respect to economic growth during the second half of the [..]

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