Forex Market
FX Daily Strategist: US
US yields still in the driver seat pushing USD higher US Treasury yields remain the primary driver in FX, and yesterday’s fall back in yields saw a partial reversal of most of the moves witnessed in the prior three days, with the USD softening particularly vs. NZD (helped by very strong PMI) but also AUD.
GBP Analysis
Cable closed in NY at $1.5715 with rate squeezed to an early low into Asia trade of $1.5695 as rate was influenced by the EUR/USD move lower, in turn led by EUR/JPY sales. Cable recovered, in line with EUR/USD, to $1.5724 before upside momentum faded.
EUR Analysis
EUR/USD closed in NY at $1.3084, after rate had extended its recovery off earlier Asian lows of $1.3004 to $1.3120. Rate came under pressure into early Asia as EUR/JPY was sold off, meeting demand at $1.3068 (recovery Thursday stalled here before the NY break higher) where it based before recovering.
JPY Analysis
Opened in Asia at Y83.55 after falling to lows of Y83.20 in NY on profit taking seen from macro funds. Exporters waded in from the opening bell in Asia today, selling the pair down from early highs of Y83.63 to Y83.36.
Daily FX Technical Strategy: JPY juggernaut still turning
Yesterday was a day of consolidation in FX markets and it passed without producing evidence of material change. Consequently, we are sticking with recent themes: USD strength, JPY weakness and NOK strength.
Behavioral Finance: Daily Forex Outlook: QE debate is artificial
EUR USD (1.3085) Yesterday’s correction across the asset classes and particularly in the US treasuries market has once again persuaded some economists to dwell on the prospects of QE by the Fed.
GBP/USD Analysis
Closed in NY at $1.5715 with rate squeezed to an early low into Asia trade of $1.5695 as rate was influenced by the EUR/USD move lower, in turn led by EUR/JPY sales. Cable recovered, in line with EUR/USD, to $1.5724 before upside momentum faded.
Technical Analysis
Dollar strength yesterday eased and gave way to a consolidation phase. Corrective moves also seen elsewhere with scandies strenghtening, oil getting hit by supply from strategic reserves. EURUSD looking for renewed weakness, USDJPY showing first signs of exhaustion,
EUR/USD Analysis
Closed in NY at $1.3084, after rate had extended its recovery off earlier Asian lows of $1.3004 to $1.3120. Rate came under pressure into early Asia as EUR/JPY came under early Tokyo pressure, with a US macro fund also adding weight. EUR/USD encountered demand between $1.3075/70 but managed to eventually post a low at $1.3068 […]
FX Market Technical Research
EUR/USD remains on the defensive., it has recently eroded the top of cloud support, the 55 day moving average and the 50% retracement support at 1.3055. It is currently sitting on support at 1.3000.
AUD/USD Analysis
Opened at $1.0525 in Asia having recovered yesterday from early lows of $1.0423 to highs in NY of $1.0555 as US treasuries rallied. Early pressure on the back of a weaker EUR/USD sent the pair down to $1.0510, before a surprising higher CNY fix sparked some short covering and a bounce to $1.0552.
USD/JPY Analysis
Opened in Asia at Y83.55 after falling to lows of Y83.20 in NY as US treasuries rallied and profit taking was seen from macro funds off the early highs of Y84.19. Exporters waded in from the opening bell in Asia today, selling the pair down from early highs of Y83.63 to Y83.36.