Forex Market
Technical Analysis
Correctional forces at play… EUR/USD Still near-term correctional… USD/JPY High in near-term resistance… USD/CAD Correcting a prior stretch… EUR/SEK Contesting near-term resistance… EUR/NOK Now targeting +7.67 (& +7.70)… USD/SEK Could still test the 21day EMA… EUR/PLN Zloty buyers in from left field.
GBP/USD Analysis
Closed in NY at $1.5495, off a late recovery high of $1.5504 (NY high $1.5516). Rate continued its corrective pullback in early Asia, touching a session low of $1.5470 before picking up fresh demand.
AUD/USD Analysis
Closed in NY at $0.9926, with rate correcting back from session highs of $0.9933 after the AUD had seen decent inflows through Wednesday, initially on release of strong GDP data and then via a generally boosted risk-on tone.
USD/JPY Analysis
USD/JPY edged up from early overnight session lows of Y79.19 to Y79.44 into early European dealing, as the underlying risk on tone, along with recent threats of yen intervention, continue to prompt an outflow form yen, though at a slow pace.
EUR/USD Analysis
Closed in NY at $1.2570, off recovery highs of $1.2587 as risk was given a boost on market chatter of global stimulus plans. Rate initially squeezed down to $1.2565 before getting a fresh lift on release of stronger than forecast Australian employment data.
Asia today: AUD soars (again) after very strong employment data
The Australian economy is on a roll with another data set today that almost defies belief. After yesterday’s stunning GDP performance it was the turn of labour data to beat consensus estimates by a large margin. The Australian economy added 38.9k jobs in May, well above the flat reading expected, and it was difficult to […]
Behavioral Finance: Daily Forex Outlook: Only ECB can elevate the short-term sentiment
EUR USD (1.2515) With the Spanish government explicitly admitting that they will need help from European institutions to recapitalise the country’s banks, the eurozone crisis has yet again attained a new summit. The markets now expect an urgent short term solution to this development.
GBP Analysis
Opened early Europe at $1.5425, stg0.8105, GBP closed in NY at $1.5385, just off late recovery highs of $1.5388 with move up aided by EUR/GBP extending its corrective pullback to stg0.8089, off earlier highs of stg0.81405.
JPY Analysis
Opened in early Europe at Y78.81 and Y98.45, opened in Asia at Y78.75 and headed lower to Y78.60 as traders reacted to a generally softer dollar, the pair quickly picked up fresh demand that returned rate toward Tuesday’s high, topping out at Y97.95 before settling back on Y78.80.
EUR Analysis
Opened early Europe at $1.2502, EUR/USD closed in NY at $1.2452, the rate recovering off a late pullback low of $1.2425 in line with US equities. A continuation of this recovery faltered as Moody’s announced a downgrading of Austrian banks, then six German banks, on both announcements rate dipped to $1.2440 where it met decent […]
ECB leads the way
Stock markets gained modestly last night after G7 pledged to closely follow developments in the Euro zone area. Meanwhile, Moody’s lowered ratings on Austrian banks and six German banks on back of increased risk of further shocks from the Euro zone debt crisis as well as the banks’ limited loss-absorption capacity.
GBP/USD Analysis
Closed in NY at $1.5385, just off late recovery highs of $1.5388 with move up aided by EUR/GBP extending its corrective pullback off earlier highs of stg0.81405 to stg0.8089. Cable initially dipped back to $1.5375 before edging higher, the recovery led initially by EUR/USD.