Forex Market
AUD/USD Analysis
AUD/USD has extended its decline Friday, pressured by risk aversion and contagion from Europe’s debt problems. The pair started the Asian session around $0.9890 after sliding late in the U.S. session when the Dow Jones Industrial Average closed near the day’s lows.
EUR struggling for support following Spanish bank downgrades
The EUR traded with a softer feel to it for most of the Asian session after Moody’s announced 1-3 notch ratings cuts for 16 Spanish banks as it noted the Spanish government’s ability to support some banks had weakened. Asian markets traded lower to match the New York session’s low at 1.2665 and consolidated thereafter.
GBP Analysis
Opened early Europe at $1.5965, stg0.7964, Cable closed in NY at $1.5913, after recovering off a late pullback to $1.5902. Rate extended this recovery into early Asia, the rate pushing to early session highs of $1.5933 before momentum faltered.
EUR Analysis
Opened early Europe at $1.2742, EUR/USD closed in NY at $1.2716, as rate was recovering off a late pullback to $1.2702. Rate continued this recovery, from an early posted low $1.2712, trading to a session high of $1.27495 on short cover demand and aided by the release of better than forecast Japan Q1 GDP which […]
JPY Analysis
Opened in early Europe at Y80.33 and Y102.34, Opened in Asia at Y80.35 and ground higher on importer demand ahead of Q1 GDP data. Dollar eased on a stronger than expected release and aided by cross yen sales slipped to Y80.25 lows, before dip demand lifted to Y80.30 and settle in a tight trading range.
FX Market Technical Research
EUR/USD has sold off towards the 1.2624 January low. We would expect to see some profit taking here ahead of a renewed stab lower to the 1.20 region. We note on the 240 minute chart a loss of downside momentum and we would allow for a small corrective rebound.
GBP/USD Analysis
Closed in NY at $1.5913, after recovering off a late pullback to $1.5902. Rate extended this recovery into early Asia, the rate pushing to early session highs of $1.5933 before momentum faltered.
EUR/USD Analysis
Closed in NY at $1.2716, as rate was recovering off a late pullback to $1.2702. Rate continued this recovery, after posting an early session low of $1.2712, on reported short covering demand, to a session high of $1.27495, the move up aided by the release of Japan Q1 GDP beating estimates which in turn provided […]
AUD/USD Analysis
AUD/USD is trading modestly higher Thursday after opening the Asian session around $0.9915 and has been in a narrow range so far of $0.9911/54, with the pair currently trading $0.9949 up 36 pips.
Japan, Singapore post better Q1 GDP but risk appetite still shaky
Asian growth was the focus for markets this morning with Japan and Singapore both producing above-forecast results. However, the effect across the region was dampened by gloomy near-term outlooks and the ongoing Greek pressures.
GBP/USD Analysis
Closed in NY at $1.5996, after rate was pressed below $1.6000 to session lows of $1.5987 as sterling failed to take advantage of any risk haven inflows as traders adjusted positions ahead of today’s key UK Inflation Report. Most expect the Report to highlight growth concerns due to current Eurozone problems focused on Greece.
Technical Analysis
The dollar is a standout winner – against everything… EUR/USD Another markedly bearish print… USD/JPY Testing overhead resistance… USD/CAD A late bloomer picking up speed… EUR/SEK A European 600pips gap!… USD/SEK M/T ref bullishly cleared… EUR/NOK Not done eyeing the 7.6530 ref… USD/NOK Pursuing an upper parallel… AUD/JPY Next downside ref insight.