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European Session – Euro hits 8-month high after breaking $1.37

Posted on October 18, 2013 at 12:12 pm GMT

The euro broke $1.37 as it continued the rally against the broadly weaker US dollar. Concerns about the economic impact of the US government shutdown is weighing heavily on the greenback, as expectations are growing that the Federal Reserve will delay scaling back stimulus until 2014. The Fed’s current bond buying program is dollar-negative. However keeping stimulus is seen by investors as positive for the US economic recovery and consequently is lifting risk appetite. Adding to market sentiment today was [..]

Forex News – China’s economy humming along at 7.8% in Q3

Posted on October 18, 2013 at 11:48 am GMT

As the world’s second largest economy and – despite the relative slowdown – one of the fastest-growing economies in the world, China is very important for the world economy and the pace of world economic growth. China is also one of the few countries that announce quarterly growth figures so soon after the end of each quarter. Chinese GDP for the third quarter grew 7.8% compared to a year earlier, accelerating from the second quarter’s growth rate of 7.5%. For [..]

Technical Analysis – EURJPY 4H chart shows uptrend; key test lies above

Posted on October 18, 2013 at 8:34 am GMT

The EURJPY pair is one pair that sees significant swings and is also an instrument through which many traders express their view on risk. Risk-on conditions usually favor the euro while risk-off favors the yen. Following a double bottom on October 8 and October 9 around the 131.15 area, a strong move higher occurred, which took the pair to its current level of 134 yen. This move higher formed an uptrend, which links the lows formed on October 9 and [..]

Asian Session – Euro consolidates gains at 10-month high

Posted on October 18, 2013 at 6:36 am GMT

The Asian session on Friday was relatively quiet and most major currency pairs consolidated the prior day’s moves. Risk currencies rallied sharply against the US dollar on Thursday and held onto gains this morning. Weighing on the dollar are expectations that the Federal Reserve will delay tapering as a result of the 16-day US government shutdown, which likely had an impact on the economy. Some estimates are for a 0.5% off fourth quarter GDP. Meanwhile, investors will eagerly await economic [..]

US Session – Dollar declines as market ponders shutdown consequences

Posted on October 17, 2013 at 7:47 pm GMT

The US dollar continued to lose ground against most majors during late New York trading. The euro was up 0.1% against the greenback at 1.3675, hovering near the session highs of 1.3681. The market was in the process of digesting the previous day’s deal and particularly if it meant that the standoff of the last three weeks would be repeated in about three months’ time. That is when the extension to the continued funding of the Federal government is set [..]

Technical Analysis – EURUSD in strong uptrend

Posted on October 17, 2013 at 1:18 pm GMT

Euro is in a strong uptrend as risk appetite was boosted after the US debt deal and there is broad dollar weakness today. EURUSD had a big breakout in the European session after penetrating key levels at 1.3570 and 1.3600 and is currently heading towards the January high of 1.3709. RSI is above 70 and confirms the bullish momentum, although this is approaching overbought territory. A pullback would lead to support at 1.3600 and below this at 1.3570. A break [..]

European Session – Dollar tumbles as markets digest deal

Posted on October 17, 2013 at 12:33 pm GMT

The US debt saga is over and the focus now turns to the uncertainty of how much of an economic impact the 16-day government shutdown had on US GDP growth. While the initial market reaction was relief after news late on Wednesday night of the US Senate reaching a last-minute deal to lift the US government borrowing limit, soon after investor reaction appeared somewhat muted, and the dollar experienced a sharp sell-off especially against risk currencies. There are a few [..]

Forex News – Washington deal: rejoice or get ready for the next fight?

Posted on October 17, 2013 at 9:20 am GMT

News that a deal was done and dusted in Washington on the eve of the expiration of the debt ceiling was greeted with relief by investors, who pushed equities sharply higher. The US dollar however did not greet the news with the same enthusiasm, actually selling off after the news was digested. So what lessons can be learned from the standoff experience? The first lesson is that Washington dysfunction reached a whole new level with the government shutdown and the [..]

Asian Session – Markets relieved as US standoff ends

Posted on October 17, 2013 at 6:38 am GMT

Just after midnight in Washington, US President Obama signed legislation to lift the debt ceiling and end the government shutdown that lasted 16 days. The deal comes just in time since the government’s authority to borrow ends on October 17th. Markets were relieved that the impasse on the budget negotiations finally ended, as there were fears that the world’s largest economy was on the brink of a default while Republicans and Democrats bickered over the government’s spending bill for the [..]

US Session – US Debt ceiling deal lifts dollar

Posted on October 16, 2013 at 8:43 pm GMT

Risk sentiment was back in the markets after a much awaited breakthrough in negotiations between bipartisan lawmakers in Washington today that would finally end the 16-day government shutdown and raise the US debt limit. News broke late in the US session that a Senate fiscal plan has been agreed upon and now the Senate has to vote on it later today followed by the House of Representatives. While there was great relief in markets, many say this deal is just [..]

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