Forex Market
EUR, AUD higher in Asia after Chinese data beats expectations
The EUR and AUD strengthened in the Asian session after China’s Q4 growth beat market estimates with 8.9 percent y/y growth recorded versus 8.7 percent expected – but still lower than Q3’s 9.1 percent. The expansion was the slowest we have seen in 10 quarters, with slower exports and the effect of measures against property […]
AUD ANALYSIS
Opened at $1.0310 after highs yesterday of $1.0337, but remained firm in early trading this morning ahead of the Chinese GDP release. Leveraged buyers and some sovereign demand picked the dip to $1.0302 and took the pair up through yesterday’s $1.0337 highs to $1.0343 before stalling.
European Market Preview
EUR/USD opened in asia at $1.2667 after a quiet session yesterday with the US closed for the Martin Luther King Day holiday. S&P’s downgrade of the EFSF to AA+ from AAA came as no real surprise following Friday’s 9 state downgrade.
NZD ANALYSIS
The NZD was trading higher late Tuesday, buoyed by better-than-expected Chinese gross domestic product data mid-afternoon. China’s GDP rose 8.9% on the year in the fourth quarter, slower than the third quarter’s 9.1% growth, the National Bureau of Statistics said Tuesday.
European Market Analysis
Currency markets were largely steady in European hours Monday, with the euro trading above a 16-month low against the dollar after a sharp pre-weekend selloff in the EUR. Investor sentiment remained fragile as the market continued to work out the ramifications from Friday’s euro-zone sovereign rating downgrades and in light of Greece’s rocky negotiations with […]
FX Daily Strategist: Europe
Small comfort in scale of S&P ratings actions as Greek PSI talks run into more trouble The reality of S&P’s ratings action against various Eurozone sovereigns on Friday was less bad than the threats made by S&P back in early December. Yet any hopes this might engender a ‘buy the fact’ response were dashed, in […]
Behavioral Finance: Daily Forex Outlook : Backdrop is as critical as the downgrade
EUR USD (1.2645) Since last November, when the agency erroneously published a downgrade notice, the market had reckoned that S&P would cut France’s triple-A. The anxiety in the market on Friday was, therefore, more about the extent of the cut (one notch or two) and the other downgrades.
GBP/USD ANALYSIS
GBP/USD closed in NY on Friday at $1.5318, having seen lows in NY of $1.5234 as rate was pulled lower by EUR/USD slippage, with triggered stops on the break below $1.5270 adding further weight.
EUR/USD ANALYSIS
EUR/USD closed in NY Friday at $1.2678, having seen lows of $1.2624 following leaked reports of the later confirmed S&P downgrades, as well as concerns over Greek debt talks. Rate opened into Asia at $1.2647, with pressure on the EUR again emerging as strong sell pressure emerged on EUR/JPY.
JPY ANALYSIS
Opened with a small gap higher at Y77.02 after highs of Y77.01 and a close of Y76.97 in NY. The rally continued in early trade with a spike up to Y77.14 before heavy EUR/JPY sales led a sharp move back down through Y77.00 to Y76.81, before encountering Japanese importer demand.
Technical Analysis
The euro correction elaborated around Friday morning became more short lived than outlined. Key day reversals seen in several EUR & USD pairs, suggesting that the underlying trends, weaker euro/stronger dollar is back on track.
GBP/USD ANALYSIS
Closed in NY on Friday at $1.5318, having seen lows in NY of $1.5234 as rate was pulled lower by EUR/USD, with triggered stops fired off on the break below $1.5270 adding further weight. Rate was marked lower alongside EUR/USD into early Asia, the rate opening trade at $1.5288 before getting pressed down to session […]