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US Session – Dollar pulls back after jobs-induced rally

Posted on July 8, 2013 at 7:53 pm GMT

Risk appetite prevailed in the U.S. trading session on Monday, as the strong U.S. jobs data from Friday gave optimism to investors that the world’s largest economy is seeing improving growth prospects. More jobs were created in the U.S. than forecast, with 195,000 new positions added according to the nonfarm payrolls report, beating expectations for a 165,000 increase. The dollar rallied sharply after the data and investors took the opportunity to book profits on Monday, leading the USDJPY to retrace [..]

Technical Analysis – EURUSD July 8

Posted on July 8, 2013 at 2:33 pm GMT

EURUSD has maintained a steady downtrend since June 19, as last week’s European Central Bank policy statements suggest further policy easing is possible. After hitting a four-month high of $1.3415 on June 19, the pair subsequently commenced a downtrend, reaching a seven-week low of $1.2805 on July 5. A broadly stronger dollar boosted by upbeat US jobs data on Friday is adding to downward pressure on the euro. After breaching the key $1.3000 support level last week, EURUSD maintains a [..]

European Session – Euro steady on expectations of Eurogroup deal with Greece

Posted on July 8, 2013 at 11:57 am GMT

The euro moved off seven – week lows against the dollar despite a broadly stronger greenback after Friday’s upbeat nonfarm payrolls report. After a strong rally following the release of the jobs data, the dollar was due for a pullback, giving some relief for the euro’s decline. There was some mixed data from the Euro zone today, mostly negative especially from Germany, Europe’s largest economy. Germany’s trade balance in May fell by more than expected, as a result of a [..]

Asian Session – Dollar remains firm after US jobs data

Posted on July 8, 2013 at 6:14 am GMT

The dollar held onto gains in early Monday trading during the Asian session, as regional markets consolidate profits made after the strong US jobs report on Friday. The nonfarm payrolls numbers added to expectations for a near-term end to the Federal Reserve’s stimulus program. The US Bureau of Labor Statistics reported that 195,000 jobs were created in June, which was more than the 165,000 forecast. This compares to May’s 195,000. Meanwhile unemployment rate remained unchanged at 7.6 percent, despite expectations [..]

US Session – Euro holds losses after Draghi, sterling hurt by BOE

Posted on July 4, 2013 at 7:57 pm GMT

The euro plummeted after European Central Bank President Mario Draghi made it clear in a post- ECB policy meeting speech today that he is not willing to raise interest rates anytime soon. Draghi reiterated that the Euro zone still needed help. “The risks surrounding the economic outlook for the euro area continue to be on the downside, ” the ECB Chief said. The ECB kept its main lending rate at a record low 0.50 percent as was widely expected by [..]

Forex News – Reactions to Bank of England post-policy meeting statement

Posted on July 4, 2013 at 1:34 pm GMT

The Bank of England held its monthly policy meeting on Thursday and as expected, the Monetary Policy Committee announced its decision to keep the benchmark interest rate at a record low 0.50 percent and made no change to its 375 billion pound asset purchase facility. The statement released was dovish and was taken negatively by the markets, sending the pound sterling tumbling by over 1 percent against the dollar. Below are some comments made by economists following today’s BOE statements: [..]

European Session – Euro falls as markets awaits ECB chief Mario Draghi speech

Posted on July 4, 2013 at 12:38 pm GMT

The main market focus was on central bank meeting today, by the Bank of England and European Central Bank. Although both banks left policy unchanged, they gave a dovish tone, sending pound and euro lower. The British pound took a bit hit after the release of the BOE’s Monetary Policy Committee’s decision to keep rates on hold at 0.50 percent and leave its asset purchase program at 375 billion pounds. A statement released by the MPC sounded dovish and led [..]

Forex News – Sterling tumbles after dovish Bank of England statement

Posted on July 4, 2013 at 11:57 am GMT

The British pound took a big hit after the release of the Bank of England monetary policy statement. Although the Monetary Policy Committee’s (MPC) decision to keep rates on hold at 0.50 percent was widely expected, as well as the maintenance of the asset purchase program at 375 billion pounds, the MPC statements appeared pretty dovish. The MPC said that the U.K. recovery “remains weak by historical standards and a degree of slack is expected to persist for some time”. [..]

Technical Analysis – USDJPY

Posted on July 4, 2013 at 9:50 am GMT

USDJPY is hovering below the key 100.00 yen level since breaking below it in Wednesday’s European trading session. There were several retests of this strong resistance level, even in early Asian trading hours this Thursday but with no success in closing above this level and the pair continued to trade below going into today’s European session. However any downside to USD is expected to be limited as the dollar strength elsewhere again other peers should keep the USDJPY pair buoyed. [..]

Asian Session – All eyes on ECB meeting

Posted on July 4, 2013 at 6:15 am GMT

The Asian session on Thursday was relatively quiet as most investors are waiting on the sidelines for the European Central Bank meeting later today, while volumes were light due to the U.S. Independence Day holiday today. Risk aversion was back and safe haven assets were in demand, giving the yen a lift. As a result, USDJPY edged down back below the key 100.00 yen level. The pair traded between 99.68 and 100.stabilize around 99.80 after some strong U.S. jobs related [..]

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