Forex Market
FX Trends daily (FOCUS : GBP/USD)
GBP/USD After a rebound in the recent weeks, the Cable has resumed its downtrend in the recent sessions. This trend should extend in the short term toward 1.5388/93 (last retracement of the uptrend between June 1 and June 20 and July 12 low pivot).
EURGBP sell-off tiring
Yesterday was an interesting one for EURGBP, as further very negative EU news saw the pair unable to hold new lows – the divergence suggests the Euro sell-off may be exhausting itself in places.
Technical Analysis
EUR/USD reversed losses incurred yesterday and managed to claw into a close at opening levels. It could be an intermediate “wave-5 low” but more bullish price action is needed to add credence to this…
FX Market Technical Research
EUR/USD: Holds Under 50% of Range. The EUR holds below 50% of it’s post-launch range, at $1.2135, which may now offer some resistance.
GBP/USD Analysis
Closed in NY at $1.5510, off late recovery highs of $1.5532 after rate had seen lows on the day of $1.5486. GBP moves during the session were seen mainly driven by EUR/GBP as the cross recovered from recently posted 44-month lows at stg0.7756, edging to stg0.7928 before consolidating this move in Asia between stg0.78075-0.7817.
EUR/USD Analysis
Closed in NY at $1.2120 after rate had recovered off session lows of $1.2067 to $1.2145 on a mix of reported middle eastern demand and short covering.
Asia today: Flash China PMI improves; Risk rebound unconvincing
The major event for Asia today was the release of the China HSBC flash PMI reading for July. The PMI improved to 49.5 from 48.2, the first improvement seen in 3 months and the highest reading since February (49.6).
Asian Currencies Technicals
AUD/USD: $1.0200-30 region seen as key support. The $1.0200-30 region is shaping up as key support for the AUD/USD with the 21 and 100 day MA’s and a medium term rising daily trend line off the June 8 lows all converging in this region.
Behavioral Finance: Daily Forex Outlook: Euro: the illusion of resilience
EUR USD (1.2115) Although developments in the eurozone debt crisis had become increasingly worrying throughout last week, market commentators could not help but notice the euro’s resilience.
GBP Analysis
Opened early Europe at $1.5576, stg0.7778, GBP closed in NY at $1.5615, just off session lows of $1.5613. Rate marked session highs into early Asia at $1.5626, as EUR/GBP was marked through Friday’s lows of stg0.7772 to stg0.7756 on early general euro pressure.
JPY Analysis
Opened in early Europe at Y78.09 and Y94.55, USD/JPY opened heavy in Asia at Y78.40 and ground lower through the Tokyo fix to Y78.25.
EUR Analysis
Opened early Europe at $1.2115, EUR/USD closed in NY Friday at $1.2160, off lows of $1.2244 as the euro was squeezed lower on the back of euro negative news.