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US Session – US dollar extends gains, all eyes on Fed

Posted on October 29, 2013 at 8:39 pm GMT

The US dollar extended gains versus most major counterparts in the US session despite some mixed data, including a bigger-than-expected drop in consumer confidence. The 16-day US government shutdown earlier this month dented confidence in many American households. Core retail sales rose in line with expectations and the Case-Shiller home price index rose at the fastest pace since February 2006. The big focus is on the Federal Reserve policy announcement after the FOMC concludes a two-day meeting on Wednesday. It [..]

Forex News – US retail sales for September good, August house prices higher

Posted on October 29, 2013 at 2:52 pm GMT

(Source: ThomsonReuters) Retail sales were down 0.1% versus expectations for a gain of 0.1%. However, excluding automobile sales, which were down 2.2% on the month, retail sales were up a respectable 0.4%. According to the media, the figures were boosted by sales of electronics and software, such as Apple’s new iPhone and a new release of the popular videogame “Grand Theft Auto”. Although automobile sales were weak, some of the drop could be attributed to calendar issues like labor-day weekend [..]

European Session – US dollar rallies versus yen after strong core US retail sales data

Posted on October 29, 2013 at 1:03 pm GMT

The strength exhibited by the US dollar today shows that market participants expect that the Federal Reserve will be continuing with ultra-loose monetary policy and maintain its current pace of bond purchases. The FOMC begins a two-day policy meeting today and will announce its decision tomorrow. Many investors will be closely watching for any clues on tapering. During the European session, risk currencies, like the euro and pound sterling, were sold off against the dollar. Meanwhile the dollar found added [..]

Technical Analysis – EURJPY holds steady in a range

Posted on October 29, 2013 at 9:18 am GMT

On the longer term weekly chart the EURJPY uptrend remains intact, supported by a stronger euro and broad yen weakness. The main driver of the EURJPY pair will be the Bank of Japan policy announcement expected on Thursday. Today the pair appears to be taking a pause from its upward momentum, trading in a 40-pip range so far. EURJPY on the hourly chart has steadied after falling 0.4% from Monday’s open to current levels around 134.25 where the pair has [..]

Asian Session – Yen gains on upbeat data, Aussie declines on RBA Governor comments

Posted on October 29, 2013 at 7:31 am GMT

The biggest mover in the Asian session was the Australian dollar which fell after Reserve Bank of Australia Governor Glenn Stevens suggested the Australian currency was overvalued. He said the currency will probably be “materially lower” in the future. The aussie declined 0.5% versus the greenback to end the session at 0.9518, after having reached a 2-week low. The yen was given a boost in the Asian session after some positive Japanese economic data, halting the currency’s recent decline against [..]

US Session – Waiting for the Fed keeps US dollar range bound

Posted on October 28, 2013 at 8:28 pm GMT

The waiting game ahead of the FOMC policy announcement on Wednesday explained the lack of movement in currency markets today. The Federal Reserve begins a 2-day meeting on Tuesday through till Wednesday. Even though most market participants expect the Fed to keep the current pace of stimulus at $85 billion bond purchases a month, many investors preferred to remain on the sidelines ahead of such a key risk event. The dollar/yen was in a holding pattern all day and made [..]

European Session – US Dollar mixed in quiet session as focus turns to FOMC decision

Posted on October 28, 2013 at 1:08 pm GMT

The new trading week started off quietly, with a light economic calendar in the Asian and European sessions keeping most major currency pairs in ranges. The only major data due for release today is US Pending Home Sales. The main currency that will be in focus this week will be the US dollar again due to the FOMC policy meeting which begins on Tuesday and ends on Wednesday. The Federal Reserve is expected to keep quantitative easing well into 2014 [..]

European session – wounded dollar fights back on weaker-than-expected German IFO

Posted on October 25, 2013 at 12:37 pm GMT

The US dollar managed to gain against the euro during the European session on news that the key German IFO business climate index for October missed expectations by coming in at 107.4 versus 108.0 expected and 107.7 during the previous month. Furthermore, technical analysts noted that the level of 1.3833 that was giving the euro trouble was the 61.8% Fibonacci retracement level of the entire down move from 1.4950 (May 2011) to 1.2050 (July 2012). The view from traders was [..]

Forex news – UK economic growth very good during third quarter

Posted on October 25, 2013 at 9:39 am GMT

The news that the UK economy grew by 0.8% quarter-on-quarter during the third quarter and by 1.5% on annual basis was welcomed as positive. The figures were exactly in line with economists’ expectations and did not move sterling by much. They served more as a confirmation that the UK was on a positive course. The quarterly growth rate of 0.8% marked the best performance in three years as it was the fastest rate since the second quarter of 2010. The [..]

Technical Analysis – AUDUSD near lows on the hourly chart

Posted on October 25, 2013 at 8:02 am GMT

The Australian dollar is a currency that can attract attention due to the relative health of the Australian economy, interest rates that are higher than other developed countries and exposure to commodities as a commodity exporter. Therefore, it is generally positively affected by rising risk appetite. However, in the last week or so it has failed to follow up the 7-month high it made against the US dollar at 0.9756. The new high occurred on October 23rd but a couple [..]

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