Forex Market

FX Market Technical Research

EUR/USD: Back Within Bollinger Band. The pair holds above the former 61.8% retracement level, which had capped at $1.2444, with this level now turning support.

USD/JPY Analysis

Closed in NY Friday at Y78.70 having recovered off Y78.45 lows. Early support in Asia lifted dollar-yen to Y78.70, rate extended gains on Japanese bank demand ahead of the fix to Y78.84.

EUR/USD Analysis

Spiked late in NY Friday to $1.2561 after reports that the ECB was considering zone targets for peripheral bond yields, later paring gains to close at $1.2511.

Asia today: Currencies steady; Must we now wait for Jackson Hole?

There was not much in the way of weekend headlines to disturb the Asian open today, so currencies were orderly and close to New York’s Friday closing levels.

Asian Currencies Technicals

AUD/USD: 21 day lower Bollinger comes into play. The correction from the $1.0540-45 region continues with the pair trading at fresh 4 week lows to end last week.

Today’s highlights: * EUR/GBP: We look for renewed selling to emerge at .7930/64 and for the downtrend to resume from here. * EUR/JPY: Prices continue to coil sideways, but while 97.73/72 minimally holds recovery risk remain to 100.00/01 ahead of 100.72, where we would expect renewed selling.

FX Daily Strategist: US

* Eurozone political and ECB developments in focus. EUR upside beckons EURUSD continues to trade close to seven week highs at 1.2550 – 1.2600. The market focus still remains firmly on the ECB’s extraordinary policy response on which details are not yet fully available.

FX Market Analysis

EUR: Opened early Europe at $1.2556, Euro-dollar closed in NY at $1.2563, off NY rally highs of $1.2590, with traders noting that a large offer was taken out at this level.

FX Daily Majors

Today’s highlights: * EURUSD: Probing 1.2598/3 resistance. We expect a correction lower from here, back to 1.2431 support. Below here then exposes 1.2337 channel support

European FX Daily

* Markets retrace yesterday’s gains * Singapore manufacturing weaker than expected in July

FX Daily Strategist: Europe

* Eurozone political and ECB developments in focus. EUR upside beckons As the London morning starts, EURUSD is trading close to seven week highs at 1.2550 – 1.2600. The market focus still remains firmly on the ECB’s extraordinary policy response on which details are not yet fully available.

Technical Analysis

In the search of a €/$ peak. AUD @ great risk!… EUR/USD Another attempt to peak… AUD/USD Watch out for a 1.0410 break!… USD/JPY Creating a bear flag… EUR/SEK Looking for 8.26/28 bids…