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Technical Analysis – USDJPY range-bound

Posted on November 7, 2013 at 9:07 am GMT

USDJPY has been confined within a triangle pattern since May and is nearing the apex. Hence, a break-out is expected in the near term. When this happens it is more likely to the upside, with a break of the key psychological level of 99.00. On an intra-day basis, the pair remains supported at 98.55, after trading in a tight range overnight. Resistance at 98.72 has been tested several times and is proving to be a key level which is capping [..]

Asian Session – Euro steady ahead of ECB policy decision

Posted on November 7, 2013 at 7:34 am GMT

The euro traded in a steady range during the Asian session, as market participants await the European Central Bank policy decision which is due later today. There are no expectations for a rate cut at this meeting, especially since yesterday’s strong German industrial production data reduced this likelihood. Nevertheless, investors will remain cautious ahead of this key risk event. ECB President Mario Draghi’s press conference will be closely watched to see if he will mention anything about more policy easing [..]

US Session – Euro holds on to gains after German industrial orders, ahead of ECB

Posted on November 6, 2013 at 8:22 pm GMT

The euro was flat during the US session, finishing at 1.3520 against the dollar, while it had traded as high as 1.3547 in late European / early US trading. The euro maintained its gains from the European session, when stronger-than-expected German industrial orders were released. There were also news reports during the session that Eurosystem sources said confidentially that there would not be a cut to the ECB key refinancing rate during the following day’s central bank meeting. In other [..]

Forex News – Germany’s industrial sector shows strong activity in September

Posted on November 6, 2013 at 2:49 pm GMT

The industrial sector in Europe’s largest economy showed increased signs of strength today after Germany’s industrial orders beat forecasts in September. Orders surged higher-than-expected by 3.3 percent month-over-month, from 0.65 percent in August. A Reuters poll forecast a rise of 0.5 percent. The data are an important leading indicator of production since rising purchase orders signal that manufacturers will increase production. The data will give a boost to Germany’s economic outlook, especially since the German economy weakened in 2012 and [..]

European Session – Sterling extends gains after more upbeat UK data

Posted on November 6, 2013 at 1:20 pm GMT

After climbing back above the key 1.35 handle during the Asian session, the euro consolidated gains around this level in the European session, ending at 1.3519, with a 0.15% gain. There was a series of Eurozone economic data released today but it was mainly Germany’s higher-than-expected industrial orders which had the most impact on the euro, boosting it to a session high of 1.3531. German industrial orders increased by 3.3% in September, which by far greater than the 0.5% that [..]

Technical Analysis – EURJPY uptrend line holds firm

Posted on November 6, 2013 at 8:51 am GMT

EURJPY has been in an uptrend since the June 13 low of 124.94 to the October 22 high of 135.50. It retested this level on October 30 before reversing to the downside and is currently finding support at the uptrend line. Yesterday’s level of 132.35 is a key support level since it is at the trendline as well. Any break below this level exposes the next support level at 131.09, which is the October 8 low. Currently the Stochastic indicator [..]

Asian Session – Yen lower, euro and pound higher ahead of busy European Session

Posted on November 6, 2013 at 7:40 am GMT

The euro and the pound gained during Asian trading, while the yen was lower – perhaps on optimism about risk assets, reflected in a 0.79% rise in the Nikkei. Other markets in the region were flat or negative. The euro gained 0.19% during the Asian session to close at 1.3500 against the dollar, continuing its rebound from a 7-week low of 1.3442 at the beginning of the week. The pound also rose by 0.23% against the dollar at 1.6081, as [..]

US Session – Dollar reverses losses against yen after strong ISM service sector data

Posted on November 5, 2013 at 8:35 pm GMT

The US dollar made a sharp turnaround against the yen after better-than-expected ISM non-manufacturing data. The index indicated that the US service sector grew in October, bolstering the probability that the Federal Reserve could begin tapering stimulus sooner than March 2014, as was previously thought. The ISM non-manufacturing index rose a full point from September to October, printing a reading of 54.4. This follows a strong result from last week’s the ISM manufacturing index. Focus now turns to nonfarm payrolls [..]

Forex News – Sterling rallies after PMI Services for October highest in 16 years

Posted on November 5, 2013 at 2:18 pm GMT

Sterling rose strongly today after the release of October Services PMI for October. The survey’s headline index surpassed expectations by coming in at 62.5, compared to expectations of a slowdown to 59.8. The September figure was 60.3. There were also good news in the sub-components of the survey, as both the employment component and the new orders component climbed to levels not seen for over a decade. The bad news was that firms were facing some capacity constraints, while their [..]

European Session – Sterling back above 1.60 on strong services PMI data

Posted on November 5, 2013 at 1:26 pm GMT

There was more movement in currency markets today after a relatively quiet start to the week. Economic data released during the European session from the UK and from the Eurozone caused some volatility for the pound and for the euro. Sterling was noticeably higher following stronger – than – expected Services PMI which beat forecasts to rise to 62.5 in October. This was the best level since 1997 and much higher than the 59.80 expected (as per a poll by [..]

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