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European Session – Euro gains in thin trading

Posted on November 11, 2013 at 1:31 pm GMT

Following heavy losses the previous week, the euro rebounded 0.22%, but stayed under 1.34 to trade at 1.3396 against the US dollar. Eurozone GDP figures are keenly awaited later in the week in order to gauge the strength of the economic recovery of the single currency area. Positive risk sentiment, reflected in higher European equity indices, pushed the dollar 0.24% higher against the yen to trade at 99.18. In economic data, Italian Industrial output for September came in mixed, as [..]

Forex News – Relative peace for traders after turbulent previous weeks

Posted on November 11, 2013 at 11:19 am GMT

Due to a lack of big economic releases from the United States, during the week ahead the market will probably try to digest recent events and try to establish new equilibriums that reflect the latest fundamentals. Monday will mark the Veterans’ day holiday in the United States and will feature only Italian industrial output data out of Europe as well as Australian mortgage lending for September and the September Japanese current account balance. Tuesday will start with business confidence indicators [..]

Technical Analysis – Gold 4-hourly could retest 4-month low of 1250

Posted on November 11, 2013 at 8:39 am GMT

[caption id="attachment_11169" align="alignnone" width="550"] (click to enlarge)[/caption] Following a high of 1361 on October 28th – more or less in line with the time of the low in the dollar index – gold has sold off sharply, reaching the 1285 level in the latest trading. Recently, the sharp sell-off below the 1300 level was caused by the stronger-than-expected October nonfarm payrolls figure, which has rekindled speculation of earlier tapering of Fed monetary stimulus. Following this break, the road has more [..]

Asian Session – US dollar holds near Friday’s highs on possibility of earlier tapering

Posted on November 11, 2013 at 7:48 am GMT

The US dollar held near its best levels for 2 months, on the aftermath of the much stronger-than-expected employment report on Friday. The euro did manage to firm slightly by 0.06% to 1.3365. In Asian economic news, Japan’s September current account surplus came in bigger-than-expected at 587 billion yen, versus 400 billion expected by economists. The previous month’s surplus was 161.5 billion. The surprise was due to an increase in earnings and profits from foreign investments. The dollar slipped under [..]

European Session – US dollar rallies after nonfarm payrolls beat estimates

Posted on November 8, 2013 at 2:39 pm GMT

The US dollar rallied after a stronger-than-expected employment report. US nonfarm payrolls for October increased by a surprisingly strong 204 thousand, whereas economists were expecting a rise of only 125 thousand. It was the first time in 9 months that nonfarm payrolls exceeded 200 thousand. There were also positive revisions to the previous 2 months’ figures totaling 60 thousand jobs. Other aspects of the employment report were not as strong however. The rate of unemployment rose to 7.3% from 7.2% [..]

Technical analysis – EURUSD hourly- euro off ECB cut lows but still in downtrend

Posted on November 8, 2013 at 9:36 am GMT

[caption id="attachment_11152" align="alignnone" width="550"] (click to enlarge)[/caption] The euro managed to bounce back from extremely oversold conditions on the hourly chart, indicated by an RSI reading of 12, following the knee-jerk reaction to the surprise quarter-point interest rate cut by the ECB. The low immediately after the rate cut was 1.3293, while perhaps a more reliable reading reflecting active two-way trading was 1.3324. This level should provide short-term support on any fresh euro down move (Support 1 on the chart). [..]

Asian Session – US dollar flat ahead of US employment report

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

The dollar’s moves were modest during today’s Asian session, as the market digested yesterday’s ECB quarter-point interest rate cut and looked ahead to the crucial non-farm payrolls report with some apprehension. The dollar managed to recoup some of its losses against the euro that occurred during the US session. The euro fell 0.10% to trade at 1.3405. Following the ECB move, the market has still not settled on the appropriate level that the euro should be trading, causing some volatility [..]

US Session – US dollar unable to hold post-US GDP rally

Posted on November 7, 2013 at 8:53 pm GMT

The US dollar made a U-turn against the yen after surging on US GDP data today. The dollar rallied above the key 99.00 yen level after data indicated the quickest rate of growth in the US economy in a year during the third quarter. The strong growth raised speculation that the Federal Reserve may be able to begin tapering stimulus sooner. After hitting a US session high of 99.40, the dollar fell against the yen to end 0.86% lower at [..]

Forex News – US GDP shows American economy growing at steady pace

Posted on November 7, 2013 at 3:23 pm GMT

[caption id="attachment_11130" align="alignnone" width="550"] (US GDP growth, quarter-on-quarter, annual rate %)[/caption] The announcement of advance third quarter GDP growth estimate at 2.8% initially looked very impressive as the figure smashed expectations of growth of 2.0%. However, on closer inspection, GDP was boosted by temporary inventory accumulation, which is likely to be reversed in the future as firms will try to de-stock. Excluding inventories, GDP grew at 2.0%; closer to expectations. During the second quarter, growth ex-inventories was 2.1%, which does [..]

European Session – Euro tumbles after surprise ECB rate cut

Posted on November 7, 2013 at 1:38 pm GMT

The European session was dull for the most part until the Bank of England and European Central Bank policy decisions. These were the biggest risk events today, and most market participants preferred to wait on the sidelines until the announcements were made, which kept most major currency pairs locked in trading ranges before breaking out after the news. The euro made the biggest move, tumbling hard against the dollar and the yen after a surprise move by the ECB which [..]

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