Forex Market
Asia today: Markets surprisingly calm ahead of today’s EU summi
Currency markets were still in limbo mode during the Asian session ahead of today’s EU summit. We had a few more data points to focus on today.
Asian Currencies Technicals
AUD/USD: Struggling to regain lost ground topside. A relatively subdued day for the Aussie yesterday with it struggling to surmount the $1.0080-90 region.
Euro Ahead Of EU Summit
The euro traded slightly lower against the dollar Wednesday, but remains in a tight range ahead of a crucial European Union summit in Brussels.
Behavioral Finance: Daily Forex Outlook: German ‘No’ seems already priced in
EUR USD (1.2495) The euro slumped to its day-low yesterday after unconfirmed reports suggested that German Chancellor Merkel appears to have estimated her own longevity as higher than the probability of eurozone countries sharing debt liability.
GBP Analysis
Opened early Europe at $1.5636, stg0.7993, another quiet Asian session and the rate eased to $1.5640 in late NY trade from earlier highs of $1.5648.
EUR Analysis
Opened early Europe at $1.2493, closed in NY Tuesday at $1.2495 after recovering from a session low $1.2442, pressured on comments suggesting German Chancellor Merkel had ruled out joint euro bond issuance for the foreseeable future.
JPY Analysis
Opened in early Europe at Y79.45 and Y99.30, a lackluster session for the yen in Asia as forex markets sit rangebound ahead of the EU leaders summit set for later in the week.
Daily FX Technical Strategy: A growing sense of foreboding
Investors are watching and waiting ahead of the EU summit later in the week. What movement there is in markets suggests that expectations are becoming more pessimistic.
FX Trends daily (FOCUS: EUR/NZD)
EUR/NZD After breaking below a support at 1.6060 (short-term support trend line) two weeks ago, the EUR/NZD has extended its downtrend and has validated the bearish scenario after the break below 1.5820 (April 2012 low pivot) yesterday.
Technical Analysis
Only limited moves seen overnight and the market seems to have entered a short term congestion. EUR selling/USD & JPY buying is however expected to soon be resumed.
FX Market Technical Research
EUR/USD: Holds Under 21-Day Moving Average. The euro recently saw a bear-cross in the daily stochastic study and now slides under the 21-day moving average at $1.2532.
GBP/USD Analysis
Another quiet Asian session for cable, the rate eased to $1.5640 in late NY trade from earlier highs of $1.5648. Cable slipped in tandem with EUR/USD on the open to $1.5623, before recovering on dip demand from Asian names.