Forex Market
JPY Analysis
Yen was on the defensive overnight though the USD was off its high by the time US traders hit the ground, dollar slippage continuing to Y81.30 as EUR/JPY eased to Y106.30 before rebounding slightly.
Behavioral Finance: Daily Forex Outlook: Euro wedged in a narrow range
EUR USD (1.3120) The euro recovered from multi-months lows against the dollar leaving investors searching for a convincing explanation. Of course, at first glance, the better-than-expected April ZEW data, Germany’s monthly survey of investor optimism seemed to be the most obvious reason This explanation, however, looks hardly convincing.
GBP Analysis
Opened early Europe at $1.5931 stg0.8238 Cable closed in NY at $1.5920 after rate had corrected back from its earlier European highs of $1.5972 to $1.5916 in NY. Rate edged higher into early Asian dealing with good demand seen for sterling-yen from Japanese accounts which pushed cable to highs of $1.5945.
JPY Analysis
Opened at Y80.84 on a bid tone following yesterday’s strong rally in the NY session. Early buying from the outset in Asia this morning from Japanese names led the whole yen complex higher with the dollar pushing through Y81.00, triggering stops through the Ichimoku cloud top to highs of Y81.44.
EUR Analysis
EUR/USD closed Tuesday’s NY session at $1.3122 settling around this area following a pullback from an earlier European high of $1.3173 to $1.3103 in NY. Rate picked up demand into the Asian session, the move to $1.31419 driven by Japanese demand for EUR/JPY through Tokyo fixing.
GBP/USD Analysis
Closed in NY at $1.5920 after rate had corrected back from its earlier European highs of $1.5972 to $1.5916 in NY. Rate edged higher into early Asian dealing with good demand seen for GBP/JPY from Japanese accounts which pushed cable to highs of $1.5945.
EUR/USD Analysis
Rate closed Tuesday’s NY session at $1.3122 after settling around this area following a pullback from an earlier European high of $1.3173 to $1.3103 in NY. Rate picked up demand into the Asian session, the move to $1.31419 driven by Japanese demand for EUR/JPY through the Tokyo fixing.
China rate cut rumours circulate in Asia, raising risk appetite
Another session of consolidation for currencies during the Asian session with data releases second-tier. Just prior to the lunch break, rumours circulated of an imminent China rate cut which saw both the Shanghai Composite and risk in general better bid.
USD/JPY Analysis
Opened at Y80.84 on a bid tone following yesterday’s strong rally in the NY session on the back of soaring equities and IMF’s upgraded global growth forecasts. Early buying from the outset in Asia this morning from Japanese names led the whole yen complex higher with the dollar pushing through Y81.00 with ease triggering stops […]
AUD/USD Analysis
Opened in Asia at $1.0395 having been pulled higher in the NY session from $1.0360 lows as the Canadian dollar rose sharply following hawkish signals from the BOC. Japanese investors opened the Asian session with strong AUD/JPY and Toshin demand, lifting the cross from early lows of Y83.98 to Y84.73 and pulling AUD/USD up with […]
Americas FX Daily – USD gives up early gains as equities rally
USD gives up early gains as equities rally What happened overnight – UK inflation comes in a bit firmer than expected, up 3.5%yoy – RBA minutes confirm likelihood of May easing
Behavioral Finance: Daily Forex Outlook: Euro’s curious rebound
EUR USD (1.3025) Spanish economic woes have meandered back into market focus with an amazing speed. Yesterday investors felt unsettled by the ECB data showing that the Spanish banks borrowed a record amount of euros in March and worried about their dependence on the ECB.