Forex Market
GBP Analysis
GBP closed in NY at $1.5950, having recovered off session lows of $1.5860. Rate touched an early session low of $1.5949 before extending the recovery, breaking above key resistance at $1.5964 to take it on to an eventual session high of $1.5990 ahead of the European open.
JPY Analysis
Opened in Asia at Y82.46 and nudged up to Y82.50 before Japanese names and a Major US black box fund sold aggressively taking the pair down to Y82.25. A second wave then targeted the Y82.00 level and a big bid at Y81.95. This was eventually filled tripping large stops through Y81.90 to lows of Y81.83.
Behavioral Finance: Daily Forex Outlook : Scepticism on Europe has no follow-through
EUR USD (1.3320) The early weakness in the euro yesterday was accompanied by a popular perception of a divergence between the US and eurozone economies. Those bearish on the euro were provided with ample fuel for their views.
FX Market Technical Research
EUR/USD remains capable of testing the top of the 7 month channel at 1.3442, this together with the February high at 1.3487 should provoke failure. The near term uptrend has been eroded and we should see the market ease back towards the 20 and 55 day ma at 1.3210/1.3174.
GBP/USD Analysis
Closed in NY at $1.5950, having recovered off session lows of $1.5860. Rate touched an early session low of $1.5949 before extending the recovery, the move breaking above key resistance at $1.5964 to take it on to an eventual high of $1.5990 ahead of the European open.
EUR/USD Analysis
Closed in NY at $1.3300 having recovered off session lows of $1.3251 through the NY afternoon. Rate marked lows into early Asia at $1.3295, as early traders targeted downside stops in USD/JPY and EUR/JPY, but after triggering stops in USD/JPY below Y8190 Japanese life companies emerged a strong buyers of this pair and EUR/JPY which […]
AUD/USD Analysis
Opened in Asia at $1.0383 having been bullied to lows of $1.0303 in NY last seen in mid January, on year-end AUD/JPY flows. An afternoon rally in stocks and EUR/JPY then led EUR/USD back up to $1.3300 which in turn boosted the AUD/USD again.
USDJPY trades lower in Asia on JPY repatriation/month-end themes
There was some welcome news for the Bank of Japan early in the Asian session as core inflation rose for the first time in 5 months in February. National CPI ex-food rose 0.1 percent y/y, higher than forecasts and above last month’s 0.1 percent decline.
USD/JPY Analysis
Opened in Asia at Y82.46 and nudged up to Y82.50 before Japanese names and a Major US black box fund sold aggressively taking the pair down to Y82.25. A second wave then targeted the Y82.00 level and a big bid at Y81.95. This was eventually filled tripping large stops through Y81.90 to lows of Y81.83.
GBP Analysis
GBP closed in NY at $1.5890, off extended pullback lows of $1.5842, as well as finishing the session above its 200-dma at $1.5851. Rate marked lows into early Asia at $1.5885 before stepping its way higher through the balance of the session, the rate edging to an eventual session high of $1.5910 ahead of the […]
EUR Analysis
EUR/USD closed in NY at $1.3323 after rate had recovered from session lows of $1.3277 to $1.3330. Rate edged its way back to retest that late NY recovery high but move met headwind supply linked to EUR/JPY sales which restricted the move to $1.33328. Rate drifted off highs, the move down led by further sales […]
JPY Analysis
Opened at Y82.90 in Asia and after a small blip up to Y82.97 fell back sharply on cross sales into the fixing amid thin year end trading. Dollar tumbled, the move initially on exporter sales before cross flows also clicked in sending the pair to Y82.54, later recovering to Y82.71.