Forex Market
GBP/USD Analysis
Closed in NY at $1.5901, having pierced above its key 200-dma at $1.5903 (today $1.5902), though failed to close above. Rate dipped back to $1.5898 into early Asia before heading higher, the move triggering stops above $1.5910 before meeting resistance ahead of Feb 8 highs at $1.5929.
EUR/USD Analysis
Closed in NY at $1.3457 after rate had recovered off pullback lows of $1.3389 (lows seen on reaction to Ireland’s call for a referendum on the EU fiscal treaty), the rate pushing to an intraday high of $1.34715 ahead of the close as risk outlook was boosted on the Dow close above 13000 (first time […]
Gold Analysis
Spot gold continues to push higher with the general risk appetite ahead of today’s ECB LTRO operation, rising in Asia this morning to just clip past yesterday’s highs of $1790.20 to $1790.50. Further monetary easing is fueling the metal’s rise to 3 month highs as the spectre of inflation looms and heightens safe haven attraction.
Markets steady ahead of the ECB’s LTRO giveaway
The last day of an extended February and the latest EBC LTRO giveaway looming tonight led to a quiet, range-bound session for Asian markets, though risk was generally favoured in the first half of trading.
AUD/USD Analysis
Opened in Asia at $1.0765 on a firm footing following yesterday’s high closes in the DJIA and S&P, as risk appetite returned ahead of the ECB LTRO operations today. The pair picked up strongly in early trade on AUD/JPY demand out of Tokyo, despite weak housing data (Q4 construction data which fell 4.6%, but followed […]
USD/JPY Analysis
Opened in Asia at Y80.46 and was led higher by EUR/JPY and AUD/JPY demand as risk appetite built following yesterday high closes on the DJIA and S&P ahead of today’s ECB LTRO operations. The pair battled up to highs of Y80.69 before encountering dollar month-end selling and slipping back to Y80.31 in recent trade.
Asian Summary
EUR/USD opened in Asia at $1.3458 on a firm footing ahead of today’s ECB LTRO, despite poor US durable goods data and Eurogroup’s postponement of a firewall decision yesterday. The DJIA closed above 13,000 for the first time since 2008, as equities rallied with precious metals, despite falls in crude oil.
Behavioral Finance: Daily Forex Outlook : LTRO2 could also augur well for the euro
EUR USD (1.3445) On the eve of LTRO2, the ECB’s president has reasons to feel some satisfaction. Data published by the Bank on Monday confirms that Italian and Spanish banks increased their respective domestic sovereign bond portfolios by impressive amounts.
Technical Analysis
EURUSD looks set to score one more high before dropping again… Bunds bullishly broke above key refs yesterday and look staged to score fresh cycle highs… US tens trails behind but also look bullish…
GBP/USD Analysis
Closed in NY at $1.5820, off pullback lows of $1.5810 after rate had posted extended highs during Monday’s Asian session of $1.5904. Rate posted an early Asian low of $1.5815 before edging higher through the session to $1.5848, as rate tracked EUR/USD recovery, though move was slightly tempered as EUR/GBP edged up from stg0.8464 to […]
Currency Weekly: FX and oil: Drilling down to what actually happens
Rather than look at how economics suggests FX “should” behave when oil prices rise, we examine how FX “has” behaved in the past. Oil producers are the winners. However, one might have expected all “risk on” currencies to suffer and safe haven FX to thrive with lower equities.
AUD/USD Analysis
Opened in Asia at $1.0754 having put in a strong recovery in NY from lows of $1.0650 seen in Europe. The recovery move was largely seen on some heavy selling in EUR/AUD after posting earlier highs of A$1.2619 in Asia yesterday.