Forex Market
AUD/USD Analysis
Opened in Asia at $1.0305 after a strong recovery in Europe and NY from lows of $1.0226 yesterday in the Far East. Aussie pushed up to $1.0329 on dovish comments from Fed’s Yellen before easing back to $1.0296 ahead of the employment data.
EUR Analysis
Opened at $1.3142 after $1.3067/1.3157 overnight range. Euro had lifted through stops in the $1.3140/50 zone ahead of the US session, only to stall and reverse, slipping to $1.3120 early in the US day as light selling emerged at the ECB fixing.
JPY Analysis
Opened at Y80.86/106.27 after Y80.60/94 and Y105.47/106.35 overnight ranges. Talk of semi-official demand had underpinned the dollar overnight and better tone of risk assets allowed yen to relinquish some of its strong Tuesday gains.
Behavioral Finance: Daily Forex Outlook: Eurozone solutions are not apparent
EUR USD (1.3090) Economic fears over Spain and Italy grippedinvestors on Tuesday as Spanish equities neared a three year low,Spanish yields went upward and Italian capital markets followed thesame pattern.
EUR Analysis
EUR/USD closed in NY at $1.3082 after correcting back from a late recovery high of $1.3100. Rate eased to $1.3066 in early Asian trade, as rate was influenced by Aussie sales as that market targeted stops below $1.0250.
JPY Analysis
USD Opened in Asia at Y80.67 and came under early pressure this morning in a continuation of yesterday’s fall, but talk of semi-official bids in the Y80.50/60 zone curtailed any further falls with a low of Y80.60.
GBP Analysis
Cable closed in NY at $1.5865 after rate had recovered off a late NY session low of $1.5818. Rate eased into opening Asian trade, the rate marking lows at $1.5852 before picking up fresh demand that saw it move up to an overnight high of $1.5880 ahead of the European open.
Daily FX Technical Strategy: Hard asset breakout
Investors continue to take risk off the table as peripheral eurozone bond yields push higher. The S&P 500 index posted a fifth consecutive day lower, and commodity markets, in particular Brent crude and copper, have broken below important range lows.
Technical Analysis – FX Daily Majors
Today’s highlights: USDJPY: Another “bearish “outside” pattern plunges towards key near-term support target , 80.58, which we look to hold near term.
GBP/USD Analysis
Closed in NY at $1.5865 after rate had recovered off a late NY session low of $1.5818. Rate eased into Asian trade, the rate marking lows at $1.5852 before picking up fresh demand, the rate edging to an overnight high of $1.5880 ahead of the European open.
EUR/USD Analysis
Closed in NY at $1.3082 after correcting back from a late recovery high of $1.3100. Rate eased back to $1.3066 in early Asian trading, as rate was influenced by Aussie sales as that market targeted stops below $1.0250.
Consolidation in Asia but risk sellers primed for any rebound
We saw a slight lull in the risk-off trade during today’s Asian session, but any rebound lacked momentum and depth, and there was a sense of willing sellers into any risk currency rally.