Forex Market
Technical Analysis
The euro & aussie are back on a losing streak… EUR/USD Could also re-check 1.2870\90… EUR/GBP “Bearish Engulfing Candle”… AUD/USD Could not escape gravity… EUR/SEK Not a triangle, possibly a flag… EUR/NOK Still messy… EUR/PLN Buying is back on the fore.
EUR/USD Analysis
Closed in NY at $1.2685 after rate was pressured to late lows of $1.2658 as market reacted to ex-Greek PM Papademos that Greek EMU exit plans were being considered. Rate held above $1.2680 into early Asian trading before dropping to $1.2648 on reaction to reported comments from CIC Chairman Jin Liqun that Eurozone leaders should […]
Asia today: No change from the BOJ sees JPY moderately higher
The Bank of Japan decided to keep interest rates unchanged and left the asset purchase fund unchanged at ¥40 tln and its credit lending programme at ¥30 tln. The Bank commented that caution was needed due to the uncertainty in global financial/capital markets and the European debt problem but the US economy’s moderate recovery and […]
GBP Analysis
Opened early Europe at $1.5810, stg0.8086, GBP closed in NY at $1.5826 after a late session recovery saw rate track EUR/USD stronger IMM close inspired rally which took it to late highs of $1.5841. This lagging of EUR/USD rise saw EUR/GBP extend its recent recovery to stg0.8098 but was seen meeting strong hedge fund offers […]
EUR Analysis
Opened early Europe at $1.2785, EUR/USD closed in NY at $1.2818 after rate had extended its recovery off session lows of $1.2725, with another boost at the IMM close taking the rate to late session highs of $1.2825.
JPY Analysis
Opened in early Europe around Y79.40 and Y101.51, USD/JPY was confined to a tight Y79.27-46 range through Asian dealing, with rate favouring the topside into early Europe. EUR/JPY was contained within Y101.446-101.77 with only interest of note was Japanese sales of AUD/JPY after the Tokyo fix in a generally subdued overnight session.
Asian Trading Today: EUR clings onto higher levels; JPY selling
Asia found the EUR back higher at the open his morning after a few heart-stopping moments for newly-found bullish sentiment yesterday. Ranges were tight again in a session devoid of data inputs with flows dictating near-term direction.
Behavioral Finance: Daily Forex Outlook: The eurozone to mull more transfers
EUR USD (1.2790) The European banking system is posing challenges which make the burden of any country exiting the eurozone even more troublesome. The bad banks loans in Spain have increased to €148 billion, making it urgent for the politicians to shape a concrete policy response.
GBP Analysis
Opened early Europe at $1.5833, stg0.8078, GBP closed in NY Friday at $1.5818, after easing from a late recovery to $1.5838. The corrective pullback continued into early Asia, the move down tracking EUR/USD, with rate touching a low at $1.5795 before recovering.
EUR Analysis
Opened early Europe at $1.2790, EUR/USD closed in NY Friday at $1.2782, off late extended recovery highs of $1.2795. The corrective pullback continued into early Asia, the rate pressed to a session low of $1.2749 before meeting US name demand.
JPY Analysis
Opened in early Europe at Y79.21 and Y101.33, opened in Asia at Y79.13 with dealers reporting of light volumes to start the working week. Dollar ground higher on investor demand as risk sentiment improved but the pair range traded to close the session around Y79.23.
FX CFTC: USD long reaching a new high on bearish EURUSD sentiment
The negative sentiment towards the EURUSD among hedge funds and other large investors reached an all time high last week. The recent data from the CFTC covering the week ending May 15 saw them selling a net 29.9k contracts of EUR futures representing a value of USD 4.8 billion.