Forex Market
EUR Analysis
Opened early Europe at $1.2292, EUR/USD closed in NY at $1.2304 after recovering on reported light short covering from session lows of $1.2266.
FX Daily Majors
Today’s highlights: * EURUSD: Break through 1.2326/37 support zone allows for a deeper set back within the current corrective uptrend, but we look for this to gain traction at 1.2209/00.
FX Daily Strategist: Europe
The USD comeback likely to short-lived We expect Thursday’s trend of USD strength, triggered at first by slightly softer China data, to be a reflection of profit taking in quiet markets, rather than a perception that the USD is becoming a more highly favoured currency.
European FX Daily
* RBA Statement of Monetary Policy dovish in tone * Chinese export and credit growth disappoint in July * Singapore GDP weaker than expected * Canadian employment likely weak
Technical Analysis
EUR eroding support, bonds point at risk aversion… EUR/USD At the mid body support… EUR/SEK Deeper into hourly divergence… NOK/SEK Impulsive setback… EUR/NOK Congestion… EUR/PLN Mixed signals.
FX Market Technical Research
EUR/USD: Tests 21-Day Moving Average. The pair tested Fibonacci level at $1.2445 before pulling back. The daily stochastic study remains firm, but 10-day momentum is declining and forming a bear-cross as the euro faces the 21-day moving average at $1.2266.
USD/JPY Analysis
Closed in NY at Y78.60, off earlier Y78.79 highs as the rate met strong supply from exporters. Asian trade opened flat, before sharp yen demand ahead of the Tokyo fix weighed to Y78.50.
GBP/USD Analysis
Closed in NY at $1.5638 after rate recovered off a retest on intraday lows of $1.5606, having seen highs earlier in the day at $1.56878 (Asia, Europe $1.5685).
Asian Currencies Technicals
AUD/USD: Consolidates ahead of resistance. Marginal fresh 4 month highs once again for the AUD/USD as it continues to pause ahead of the March 19 highs.
Americas FX Daily
Australia data help EUR-funded risk trade What happened overnight * Australia jobs data better than expected; NZ worse * China growth data weak but inflation leaves room for easing * BOJ and BOK leave policy unchanged
FX Daily Strategist: US
* EUR a tad lower despite positive mood music While the mood in financial markets continues to remain optimistic (glass half-full, not half empty), EURUSD is down about 60 pips closer towards 1.2300, the lowest since Friday.
EURUSD falls back after failure to take out resistance
EURUSD dropped to just below 1.2300 today as the overhead 1.2400/50 resistance remains in place. GBPUSD fades after yet another upside attempt on its second-worst trade deficit reading ever.