Forex Market
GBP Analysis
Opened early Europe at $1.5504, stg0.7895, GBP closed in NY at $1.5503, after posting lows in NY post FOMC Minutes (less dovish than expected), of $1.5487.
JPY Analysis
The BOJ left the asset purchase size unchanged, but cut the size of fixed rate operations by Y5 trn. The BOJ left rates unchanged at 0.1%. USD/JPY traded a range of Y79.48 to Y99.96, having spike to the session high at Y79.96 in the immediate wake of the BOJ policy decision.
EUR Analysis
Opened early Europe at $1.2240, EUR/USD closed in NY at $1.22361, having seen extended lows post less dovish than expected FOMC Minutes release, of $1.2212.
Behavioral Finance: Daily Forex Outlook: Fed looks less dovish against the new backdrop
EUR USD (1.2235) Market disappointment at the Fed minutes has to be evaluated against the changed backdrop where other central banks namely the ECB and BoE, as well as several Asian monetary authorities have engaged in easing since the Fed meeting.
Technical Strategy: FX Trends daily (FOCUS: AUD/USD)
AUD/USD After hitting a high at 1.0330, the AUD/USD has resumed its decline and is testing a support at 1.0156 (23.6% retracement of May to July 2012 upward wave).
Daily FX Technical Strategy: Momentum points to higher dollar
Growth concerns dominated trading overnight. Low and falling US yields made no impact on the dollar which rose even against recently strong currencies like the AUD and KRW.
AUDUSD reversal gives bears a toehold
Bears have a better technical toehold on AUDUSD today after last night’s very ugly employment report reminds the market of the shaky status of the Australian economy.
Technical Analysis
In general a stronger dollar emerging with especially CABLE, AUDUSD, NZDUSD seen as a sell. The yen also seems to be on a strengthening path. EURUSD a marginally new low has fulfilled at least our minium target of a fresh cycle low,
FX Market Technical Research
EUR/USD: Studies Remain Weak. The EUR is still under pressure amid weak daily studies but trade is back within the falling Bollinger band of $1.2185, allowing more room for bears to extend the $1.2212 low.
GBP/USD Analysis
Closed in NY at $1.5503 after posting lows in NY post FOMC Minutes (less dovish than expected) of $1.5487. Rate nudged its way to an early high of $1.5515, tracking EUR/USD early recovery, before dropping back to mark overnight lows at $1.5497 as recovering risk was knocked back by S.Korea’s surprise 25bp rate cut along […]
EUR/USD Analysis
Closed in NY at $1.22361 having seen extended lows post less than expected dovish FOMC Minutes release of $1.2212, the move lower taking out option barrier interest at $1.2230 and $1.2220, but stronger demand ahead of larger barrier interest at $1.2200 cushioned the move lower.
USD/JPY Analysis
The BOJ left the asset purchase size unchanged, but cut the size of fixed rate operations by Y5 trn. The BOJ left rates unchanged at 0.1%. USD/JPY traded a range of Y79.48 to Y99.96, having spike to the session high at Y79.96 in the immediate wake of the BOJ policy decision.