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US Session – Dollar tumbles after dovish Fed minutes

Posted on July 10, 2013 at 7:54 pm GMT

The dollar tumbled against most major counterparts in late U.S. session trading on Wednesday after a much anticipated release of the Federal Reserve June 18-19 policy meeting minutes. Markets were expecting a more hawkish tone, which wasn’t the case. According to the minutes, several FOMC policy makers said that they would prefer to see an improvement in the U.S. labour markets as well as housing before they would consider tapering stimulus. Many investors, since Bernanke’s talk after the Fed meeting [..]

Technical Analysis – EURUSD July 10 – Dollar weakness ahead of Fed

Posted on July 10, 2013 at 2:36 pm GMT

The dollar is expected to remain broadly weaker in the buildup to the U.S. Federal Reserve policy meeting minutes due later in the U.S. session on Wednesday. This will give the EURUSD a bounce but resistance is expected to cap the pair at $ 1.2845. Support lies at yesterday’s low of $1.2754. On the hourly chart MACD remains in bearish territory below zero. RSI is turning up and is above 50, but not oversold yet. Prices just broke above the [..]

European Session – Dollar eases ahead of Bernanke speech

Posted on July 10, 2013 at 12:03 pm GMT

The dollar is broadly lower as investors are anticipating the Federal Reserve policy meeting minutes from the June meeting due later in the day as well as Fed Chief Bernanke’s speech. During the European session the dollar eased against the euro and pound, giving some relief to these currencies that suffered huge losses on Tuesday. The dollar also weakened against the yen today. The euro fell to a three-month low on Tuesday after European Central Bank policymaker Joerg Asmussen, made [..]

Forex News – Euro weighed down by Italy’s downgrade

Posted on July 10, 2013 at 10:23 am GMT

The euro remains weak a day after Italy’s sovereign credit rating was lowered by Standard & Poor’s. Europe’s third largest economy has been downgraded by one notch from BBB+ to BBB. Italy is now two notches above junk status following the rating downgrade, with a negative outlook that suggests a further downgrade is possible. In a statement the S&P cited concerns for the Italian economy which has been mired in the worst recession since the Second World War. The euro [..]

Asian Session – Yen gains after BOJ policy meeting minutes

Posted on July 10, 2013 at 6:29 am GMT

China data showed an unexpected fall in imports and exports, despite forecasts for an increase. This dampened sentiment in the markets, since China is the second largest economy in the world. This comes on the backdrop of more funding control in China, which could lead to a cash crunch. Meanwhile the Bank of Japan policy meeting minutes were released today. Investors are lowering their expectations that the bank will adopt further policy easing this year. This boosted the yen. The [..]

US Session – Euro plummets to 3-month low below $1.2800

Posted on July 9, 2013 at 8:28 pm GMT

The euro was hammered after comments made by European Central Bank policymaker Joerg Asmussen, who signalled to the markets that loose monetary policy is here to stay for now, and that record low interest rates are to stay for an extended period of more than 12 months. Strength in the dollar was boosted by these expectations, while in contrast, the U.S. Federal Bank is ready to tighten policy and will begin scaling back on stimulus. The dollar index hit a [..]

Technical Analysis – GBPUSD July 9

Posted on July 9, 2013 at 2:16 pm GMT

GBPUSD remains under pressure with most indicators showing a bearish bias. On the hourly chart, the pair remains below the 50-hour and 200-hour moving averages. RSI has fallen below 50, approaching oversold territory but still slightly above 30 so not extreme yet. This could give some scope for a bounce to enter a short position. GBPUSD has stabilized at $1.4850, which has proven to be a key support level after being retested several times since first falling to this level [..]

European Session – Broadly stronger dollar makes most gains versus sterling

Posted on July 9, 2013 at 12:11 pm GMT

Focus seems to remain on the Federal Reserve and its potential scaling back on stimulus, keeping dollar buoyed. During the European session, the dollar made the most gains against the British pound, and also strengthened against the euro as well as yen. This lifted the dollar index, which measures the USD against a currency basket, by 0.2 percent to 84.343 from 84.085. Sterling was the worst performer against the dollar, falling nearly 150 pips after weaker-than-expected U.K. manufacturing data. Manufacturing [..]

Forex News – Sterling tumbles after weak UK manufacturing data

Posted on July 9, 2013 at 9:32 am GMT

Sterling fell by 100 pips against the dollar after disappointing U.K. manufacturing data, raising concerns about the economic recovery in Britain. According to a report released by the Office for National Statistics today in London, manufacturing output in Britain contracted in May by 0.8 percent, despite forecasts for an increase of 0.3 percent. The decline was at the fastest rate since January. Industrial production fell 2.3 percent in May from a year earlier. Adding to the bad news, the trade [..]

Asian Session – Dollar edges up against yen

Posted on July 9, 2013 at 6:09 am GMT

The Asian session on Tuesday was mostly uneventful although it saw more upbeat sentiment after upbeat data from China, which gives optimism for more growth in the world’s second largest economy. China’s National Bureau of Statistics reported that annual consumer inflation edged up to 2.7 percent in June from May’s reading of 2.1 percent. This beat forecast for a fall in CPI to percent. The dollar rebounded against the yen, with USDJPY rising to a session high of 101.24 from [..]

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