Forex Market
AUD/USD Analysis
AUD/USD has staged a moderate bounce Thursday after a surprisingly upbeat jobs data eased some expectations of deep cuts to interest rates. The April labour report surprised on the upside, with 15,500 new jobs added versus a consensus of -5,500.
Headline Oz jobs look strong – but are they really that good?
The surprisingly strong Australian jobs report in March led many to anticipate a mean-reverting softer number in April, but it was not to be. On the headline, Australia added 15.5k jobs in the month, well above consensus of -5.0k, and the unemployment rate dipped to 4.9 percent, the lowest in a year. But drilling down […]
GBP Analysis
Opened early Europe at $1.6132, stg0.8040, GBP closed in NY at $1.6156, as rate pulled back from recovery highs of $1.6168. The corrective pullback continued through Asia as rate, initially marked highs at $1.6159, eased to a low of $1.6129 as it tracked EUR/USD slippage, with EUR/GBP diverting some of the pressure as it eased […]
EUR Analysis
Opened early Europe at $1.3030, EUR/USD closed in NY at $1.30052, after rate had seen lows in this session of $1.2983 before bouncing back to $1.3044 as market reacted to comments from Greece as parties there announced intentions (as regards austerity and Greek debt) as they tried to agree a coalition to form a government.
JPY Analysis
Opened in early Europe at Y79.72 and Y103.45, Opened in Asia around Y79.85 and headed higher on Japanese name demand, before paring gains on cross yen sales. Further heavy supply in AUD/JPY/EUR/JPY in particular pressed to Y79.72 and dollar settled in a tight range.
GBP/USD Analysis
Closed in NY at $1.6156, as rate pulled back from recovery highs of $1.6168. The corrective pullback continued through Asia as rate, initially marked highs at $1.6159, eased to a low of $1.6129 as it tracked EUR/USD slippage, with EUR/GBP diverting some of the pressure as it eased from early highs of stg0.8050 to stg0.8035.
EUR/USD Analysis
Closed in NY at $1.30052, after rate had seen lows in this session of $1.2983 before bouncing back to $1.3044 as market reacted to comments from Greece as parties there announced intentions (as regards austerity and Greek debt) as they tried to form a coalition to form a government.
Technical Analysis
Commodities & their FXers pressured and Europe has a headache… EUR/USD Serious sub-1.30 attempt… AUD/USD Testing the downside stretch… USD/CAD Shooting at high end of range… EUR/SEK Likely popping resistance soon… USD/SEK Over 6.8820 would call for ~6.95… EUR/NOK 7.60 resistance under pressure.
AUD/USD Analysis
AUD has extended its losses Wednesday, weighed by lower Asian bourses and comments from Treasurer Wayne Swan in his post-budget address where he reiterated that the budget would give flexibility to the RBA to ease monetary policy further.
In Asian session, EURUSD back to Monday lows, despite German data
The Asian session traded with a general risk-off feel to it with commodity-bloc currencies, and the EUR to a lesser extent, extending their recent bout of weakness. There were no major data releases to influence so it was equity markets that drove direction.
Behavioral Finance: Daily Forex Outlook: The pro-growth strategy has yet to emerge
EUR USD (1.2975) If the recovery of markets across all asset classes is any indication then the change of guard in France seems to have been accepted as a precursor to a non-confrontational Franco-German relationship.
FX Market Technical Research
EUR/USD has held the initial test of the 61.8% retracement of the move seen this year so far at 1.2954 and has seen a small rebound. While we would allow for the rally to fill the weekend gap to 1.3081. it should remain shallow and the risk will remain on the downside.