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US Session – US dollar buoyed by strong Chicago PMI, lower jobless claims

Posted on October 31, 2013 at 9:10 pm GMT

The US dollar rose after the Chicago purchasing managers index jumped to 65.9% to a 2-1/2 year high. Adding to the upbeat data, initial jobless claims in the US fell last week by more than expected to 340,000. While the dollar strengthened versus the yen after the data, it was unable to hold onto gains and fell to a low of 98.07 before bouncing to end the US session with a positive change of 0.1%. For the month of October, [..]

European Session – euro drops on weak Eurozone data

Posted on October 31, 2013 at 1:31 pm GMT

The euro dropped sharply against the dollar, adding to the losses of the previous sessions by shedding 0.45% to 1.3642 after disappointing data from Germany, France as well as the wider Eurozone. The disappointing data in the Eurozone concerned both unemployment and inflation. According to Eurostat, the flash estimate of October inflation came in at 0.7% versus expectations of 1.1%. The inflation data could be a source of some concern for the ECB, as the bank would like inflation to [..]

Technical Analysis – GBPJPY consolidating

Posted on October 31, 2013 at 9:35 am GMT

The Bank of Japan’s loose monetary policy will likely keep the yen weak. In contrast to the BOJ, the Bank of England is expected to tighten monetary policy sooner than the BOJ. A string of UK data indicates the economy is on path to a stronger recovery, leading to the recent strength in the British pound. GBPJPY rose steadily from August to reach a high of 159.96 in September, a level which has proven to be a strong resistance level. [..]

Forex news – The Fed keeps its printing presses on but will the dollar continue its decline?

Posted on October 31, 2013 at 9:32 am GMT

The news that the Federal Reserve left its policy unchanged during its 2-day meeting on October 29-30, was in line with market expectations. The Fed’s overall assessment is that since September, incoming information “generally suggests that economic activity has continued to expand at a moderate pace”. In addition, both developments in the labor market as well as on inflation, were seen in a positive manner by the Fed. Something that is a serious drag on the economy [..]

Asian session – Yen makes slight gain after BOJ maintains loose policy

Posted on October 31, 2013 at 7:48 am GMT

The Bank of Japan announced after its policy meeting today that it left monetary policy unchanged. There was a unanimous vote to continue with increasing the monetary base by 60-70 trillion yen per year in an effort to stimulate the Japanese economy. While the decision was in line with market expectations, the yen strengthened slightly after the announcement, gaining 0.2% against the US dollar, to end the Asian session at 98.30. Meanwhile the US dollar gained overnight during the late [..]

US Session – Dollar firms on short covering as Fed will keep pumping liquidity

Posted on October 30, 2013 at 8:47 pm GMT

Despite a weaker-than-expected ADP employment report for October and the Fed announcing it will continue with its monthly asset purchases of 85 billion dollars, the US currency managed to gain today. The dollar gained 0.13% against the euro to trade at 1.3731, while against the yen it climbed 0.38% to 98.61. Parsing through the policy statement, the Fed acknowledged that the fiscal policy stance was constraining growth, although overall it saw there was broad improvement in the underlying economy. The [..]

Forex News – US Dollar weak after ADP jobs disappoint, focus shifts to FOMC

Posted on October 30, 2013 at 3:20 pm GMT

The ADP monthly employment change report was released today, creating disappointment as it missed forecasts, and raised concern about the US labor market recovery. Fewer than expected jobs were created in the private sector in October, possibly as a result of the 16-day government shutdown earlier this month. There were expectations for 150,000 jobs to be added to the US economy, while only 130,000 were actually added. This was the smallest gain in jobs since May. Adding to disappointment was [..]

European Session – German unemployment in line, US ADP misses expectations

Posted on October 30, 2013 at 1:17 pm GMT

The dollar made a comeback by the end of the European session, while it was mostly weak previously. The euro was up slightly against the greenback by 0.04% to trade at 1.3749, having traded as high as 1.3777. Sterling also firmed by a slight 0.03% to trade at 1.6052 versus the dollar. In economic news, the number of jobless Germans increased by 2,000 during October but the unemployment rate held at 6.9%, near its post-reunification low of 6.8%. Elsewhere, according [..]

Technical Analysis – GBPUSD in a rising channel

Posted on October 30, 2013 at 11:16 am GMT

On the long term daily chart, cable has been in a rising channel since the July 9th low to the October 1st high. It is currently testing the lower channel line today. On the hourly chart, sterling has been in a steady downtrend against the US dollar in the last three days and has stalled at the 1.6022 level, before bouncing higher and testing the key 1.6070 level. The next support level is at the key psychological level of 1.5900 [..]

Asian Session – US dollar holds gains ahead of FOMC and jobs data

Posted on October 30, 2013 at 8:00 am GMT

The Asian session was quiet with most major currency pairs consolidating yesterday’s moves ahead of the Federal Reserve policy announcement later today. Markets have pretty much discounted the prospect of more easy money until well into next year. The FOMC announcement is due at 2pm EST. The Fed is expected to maintain its current bond buying program at $85 billion a month in an effort to stimulate the US economy. Meanwhile, US ADP jobs data are also due today, which [..]

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