Forex Market
Technical Analysis
Mr. Riskoff takes center stage – scandies resilient… EUR/USD Correction higher likely ended… USD/JPY Momentous upside attempt… EUR/SEK Krona likes Mr. Riskoff it seems… EUR/NOK Extending losses… USD/PLN Gunning for a +3.4945 break.
GBP/USD Analysis
Closed in NY at $1.5597, off traded lows at $1.5578 as rate was pulled lower by deeper EUR/USD slippage, with a paring back in risk seen as the main driver.
EUR/USD Analysis
Closed in NY at $1.25439, off pressured lows of $1.2532. Risk suffered through the European-NY session as market was made aware of the later action by Moody’s to downgrade 15 major financial institutions, position adjustment ahead of initial Spain bank audit results (full audit results only due in Sep) and Goldman Sachs putting out a […]
USD/JPY Analysis
The JPY is trading lower across the board in Asian trade Friday, as its safe-haven status slips – at least for now. USD/JPY was trading at a session high Y80.44 late in the day, having bounced sharply off the low at Y80.01 after the Tokyo fix and then triggering stops on a break above the […]
AUD/USD Analysis
AUD/USD opened the Asian session Friday around $1.0032, with prices in consolidation mode after yesterday’s steep declines. The rate has been observed in a narrow range so far this morning of $1.0032/65 after some large model fund selling was seen late yesterday in addition to some macro names.
Asia RUndown
News and markets Moody’s bank downgrades last night moved on from European banks to the big internationals. CS was lowered 3 notches. JPM MS GS Citi UBS Deutsche Barcap BNP Credit Ag and RBC down 2 notches.
EUR Analysis
Opened at $1.2694 after $1.2643/1.2708 overnight range. Euro had struggled atp $1.2700 during European hours with chatter suggesting Dutch and semi-official sales capping, and a slight nudge higher in early US dealings stalled again at $1.2700.
JPY Analysis
Opened at Y79.96/101.50 after Y79.40/97 and Y100.55/101.54 overnight ranges. JPY was defensive again overnight and that trend continued in US dealings with USD nudging above Y80.00 as EUR/JPY tested to Y101.63 as stops above Y80.00 and Y101.50 were tripped.
GBP Analysis
Opened early Europe at $1.5676, stg0.8082, GBP closed in NY at $1.5717 having seen a volatile post FOMC session with moves tracking EUR/USD reaction.
EUR Analysis
Opened early Europe at $1.2670, EUR/USD closed in NY at $1.2704 having experienced a volatile reaction to the FOMC extending Operation Twist into year end, initially dropping to session lows of $1.2638 before bouncing sharply back to highs of $1.2744 as details of the release were analysed.
JPY Analysis
Opened in early Europe at Y79.68 and Y101.05, opened in Asia at Y79.50 and headed lower in thin trade to Y79.39 before the rate met strong dip demand and recovered to Y79.65 as the pair benefited from the Fed standing pat on expansion of QE.
Behavioral Finance: Daily Forex Outlook: Is the Fed vying for unorthodox measures?
EUR USD (1.2675) Irrespective of the ultimate impact of the measure, it was crucial for the Fed to extend Operation Twist to enjoy the continued confidence of the markets.