Forex Market
EUR/USD Analysis
Spiked to $1.2611 in late European trade on reports that ECB President Draghi would back up buying sovereign bonds with a maturity of up to 3 years, later easing to $1.2590.
Asia today: No change RBA; Statement a tad more upbeat than exp
After the flurry of PMI data yesterday, Asia switched to central bank mode with the RBA announcement the key item on the agenda. The RBA left rates unchanged at 3.5 percent, as expected, though the economy is running close to trend. It noted that previous rate cuts are still working their way through to the […]
Asian Currencies Technicals
AUD/USD: Layers of support just below market. Fresh 4 week lows continue with the pair dipping below the Ichimoku cloud base, but pulling up just short of the 38.2 Fibo level, the 21 week moving average ($1.0214) and the 100 day moving average.
FX Daily Strategist: US
– Focus to shifts from US to Europe post Bernanke and ahead of the ECB meeting on 6 September Fed Chairman Ben Bernanke’s highly anticipated Jackson Hole speech confirmed the dovish tone from the most recent FOMC minutes.
FX Market Analysis
GBP: Opened early Europe at $1.5872, stg0.7921, GBP opened in Asia at $1.5875 and ground lower in tandem with euro-dollar to print $1.5850, later recovering on dip demand as traders reported of thin volumes.
FX Daily Crosses
Today’s highlights: – EUR/GBP: The spotlight remains on the .7950/64 barrier and while below here the medium-term downtrend remains intact. – EUR/JPY: While trend support at 97.65 holds, recovery risks to 100.00/01 remain intact.
FX Techs
At a glance: Too calm to be true Apart from slightly increased volatility ahead of the decisive meetings and summits, the investment community seems to be little concerned as risk markets keep on defending their positive bias and the EUR appears to be undisturbed on its recovery path.
FX Daily Majors
Today’s highlights: – EURUSD: Prod above 1.2593/8 Fibonacci cluster exposes the mediumterm downward trendline at 1.2644. Above here is needed to expose the 1.2749 interim high.
FX G10 and EM Morning Trader Views
G10 EUR – Big week for the euro with lots expected of the ECB on Thursday – A new high at 1.2637 Friday cleared a few more shorts out of the mkt but we struggled to sustain that move, backed up by the rally in Spanish 10 yr yields on Friday back towards 7%.
CFTC: EUR short reduced as dollar selling continued
Speculative traders in IMM currency futures continued to sell dollars ahead of Jackson Hole last Friday. The data covering the week ending August 28 showed an aggregate dollar short position of USD 5 billion with most of the selling occuring against the EUR and to a lesser extent the JPY and CAD.
Technical Analysis
€/$ – target met, GOLD take off, stronger NOK… EUR/USD Should be turning down… GOLD Well…that’s a take off!… AUD/USD At the low end of the bands… EUR/SEK Trying to break 8.31/32…
FX Market Technical Research
EUR/USD: Testing 100-Day Moving Average. The pair is testing the 100-day moving average at $1.2578, which is a declining measure.