Forex Market
EUR Analysis
EUR/USD closed in NY Friday at $1.3077, just off pullback lows of $1.3070, with rate opening into Asia around $1.3100 (session highs) before turning lower again. Rate had drifted down to $1.3062 in Wellington before DJ reran the story that Moody’s would announce their decision on ratings for a large number of European banks.
GBP/USD Analysis
Closed in NY at $1.5844, off traded lows at $1.5841. Rate nudged to an early high of $1.5862 in early Asia before turning lower, the rate dragged down by EUR/USD slippage though part of the downside pressure was diverted over to EUR/GBP which eased from an early high of stg0.82465 to stg0.8221.
Technical Analysis
Spain still in focus – € weaker… EUR/USD Trying to break lower… EUR/JPY Holding on to the break?… EUR/SEK Choppy pattern on top of 55d… USD/SEK Focus next at 8.8760… EUR/NOK Look for a down and up move… NOK/SEK Bounce getting serious… EUR/GBP Supply at “low” levels.
EUR/USD Analysis
Closed in NY Friday at $1.3077, just off pullback lows of $1.3070, with rate opening into Asia around $1.3100 (session highs) before turning lower again. Rate had drifted down to $1.3062 in Wellington before DJ reran the story that Moody’s would announce their decision on ratings for a large number of European banks.
USD/JPY Analysis
A quiet session to open the week for the dollar-yen as the pair continues to be protected from further falls by semi-official bids in the Y80.50/60 zone but exporter offers and EUR/JPY sales remain to cap moves above Y81.00.
AUD/USD Analysis
Opened the new week at $1.0375, and after very early highs of $1.0387 settled around $1.0380. Concerns over China’s band widening of the Yuan, negative weekend press on the ECB and Germany from Sarkhozy, calls for the IMF’s warchest to be bolstered from ECB Asmussen and a re-run of Moody’s Friday’s comments over European bank […]
Muted market reaction to China’s Yuan band widening
Today’s Asian session was a rather muted affair, despite a couple of weekend announcements from the People’s Bank of China. They announced a widening of its daily Yuan trading band to 1 percent in either direction from the fix, up from the existing 0.5 percent with intended aim according to the PBOC to “meet market […]
Behavioral Finance: Daily Forex Outlook: Major currencies seen as fairly-valued
EUR USD (1.3170) The euro’s situation remained neutral against the backdrop of yesterday’s Italian bond auction that proceeded in line with expectations – neither good nor bad. With the euro trading within recently small ranges, traders simply attributed the modest uptick to a weak dollar rather than to a strengthening euro.
GBP/USD Analysis
Closed in NY at $1.5957, with rate seen coming off its late recovery extension highs of $1.5985 after risk was given a late NY boost on rumours that Chinese GDP would come in strong. This corrective pullback extended to $1.5948 into early Asia before recovering with EUR/USD to $1.5969 ahead of the China data release.
EUR/USD Analysis
Closed in NY at $1.3185, off a late rally high of $1.3213 seen as market reacted to rumours (unfounded as the later release showed) of a strong China GDP. Rate got another lift into early Asia as the rumour mill continued on the expectation of a strong China GDP, the rate trading to a high […]
AUD/USD Analysis
Opened in Sydney around $1.0434 after a strong rally yesterday from lows of $1.0296 to $1.0450 as strong employment data and later talk of a strong Chinese GDP during the NY session lifted risk appetite.
USD/JPY Analysis
Opened in Asia at Y80.89 after trading a bland Y80.79-81.13 range yesterday with the pair still bracketed by exporters offers above Y81.10 and talk of large semi-official bids lurking down at Y80.50/60.