Forex Market
More gains for the dollar, but not quite so emphatic in Asia
More of the same in the Asian session with an early sell-off in US bonds helping the USD to higher levels. But with no follow-through action, currency pairs consolidated and edged marginally higher on slight profit-taking in the second half of the session. USDJPY managed a fresh cycle high of 84.16.
AUD/USD Analysis
Opened in Asia around $1.0450 and headed lower as the USD firmed across the board in a continuation of the NY rally and USD/JPY marched up through Y84.00 on the Tokyo open. Despite a soaring AUD/JPY, AUD/USD slipped to lows of $1.0423 before exporters and US banks bought, sparking some short covering and bounce to […]
USD/JPY Analysis
Opened in Asia at Y83.69 and after an early low of Y83.65 headed up on investor and PRDC related demand on the Tokyo opening bell taking out a Y84.00 barrier and triggering stop loss buying to highs of Y84.19. Offers now lie at Y84.20 up to Y84.50 with bids seen down at Y83.70/80.
JPY Analysis
Opened in Asia this morning at Y82.88 after posting highs in NY of Y83.09. This morning’s session in Asia saw some early fixing demand and strong buying from CTA accounts lift the pair through the NY highs tripping some stops to Y83.29 before settling around Y83.20.
Technical Analysis
The dollar is strong despite stellar US stock market performance and this is impressive… Key below in EURUSD remains at 1.2974 and the market is closing in on it… The USD index was allowed to bullishly violate the key 80.12 ref and this opens up for more dollar buying…
USD/JPY Analysis
Opened in Asia this morning at Y82.88 after posting highs in NY of Y83.09 following upbeat comments out of the FOMC and stronger retail sales data. The pair is continuing to build higher along with US yields, despite the lack of further easing from the BOJ yesterday.
AUD/USD Analysis
Opened in Asia at $1.0539 after posting lows in NY of $1.0485 following strong retail sales data and lack of QE3 hints from the Fed in the FOMC which painted a more upbeat picture for the US economy. A strong rally in equities led the recovery together with a sharp reversal in the EUR/AUD from […]
USD consolidates in Asia after its post-FOMC rally
Very little activity to report from the Asian session after the US dollar reigned supreme after the FOMC meeting. Currencies were content to consolidate at lower levels versus the greenback, awaiting fresh impetus from the European and US sessions.
Technical Analysis: Bond Bolly band width warning
Bollinger band width in bond markets is very low pointing to a high risk of volatility breakouts. The technical probabilities suggest that the break will be lower in yields. The USD is building upside momentum although the Aussie retains some lingering bullish potential. Gold is consolidating before another leg lower and low volume in stock […]
GBP Analysis
Closed in NY at $1.5637 after rate had been pressured to intraday lows of $1.5603 with recovery to $1.5646 through the rest of the session seen laboured as it trailed EUR/USD stronger correction. This in turn allowed EUR/GBP to break back above stg0.84, marking a high in NY at stg0.8417.
JPY Analysis
Opened in Asia at Y82.32 and edged up to Y82.43 ahead of the BOJ announcement, but continued to be capped by exporter supply. The Central Bank left rates on hold and the asset buying program at Y65 trillion. Dollar subsequently crashed to lows of Y81.97 before encountering some solid bids.
Behavioral Finance: Daily Forex Outlook: The gap between periphery and core
EUR USD (1.3175) The OECD’s upbeat evaluation of the future path of eurozone economic development did not prevent many market commentators mulling the prospect of further debt problems in the periphery.