Forex Market
Daily FX Technical Strategy: Pushing the boundaries
As we move deeper into the summer holiday doldrums, the major FX markets are drifting within clearly defined ranges. However, things are slowly coming to a head.
Behavioral Finance: Daily Forex Outlook: The highest hurdle for Fed QE3
EUR USD (1.2260) A collection of disappointing US data releases caused the dollar to weaken moderately yesterday. The headliner was the Philly Fed survey, which was not only belowconsensus, but also recorded its third consecutive negative reading.
Technical Analysis
EURUSD is still in its correctional drift higher, but it is likely to end soon with Spanish 10y yield (& spread to Germany) fast rising/widening… This is also good news for Bunds, soon breaking the recent 145.97 high…
FX Market Technical Research
EUR/USD: Recovery in Daily Studies. The EUR still sees a recovery in the daily stochastic study. However, bulls need to recover the 21-DMA of $1.2390 to re-establish themselves.
GBP/USD Analysis
Closed in NY at $1.5722 after being driven to extended highs of $1.5735 on mainly EUR/GBP trade, the cross breaking below stg0.7800 to mark fresh 44-mth lows at stg0.7792.
EUR/USD Analysis
Closed in NY at $1.2280, after rate had recovered off NY lows of $1.2229 to $1.2290, with rate opening Asia at recognizable levels seen over the last few days. Quiet opening start in Asia before rate was pressured to session lows of $1.2250.
Australia and New Zealand Weekly: AU bonds outperform, but can they hold their gains?
AU government bonds have been the stellar performer over H1, with a weakening in the global industrial outlook and safe haven flows the key drivers. Given our near-term global risk view, we believe the tactical game plan for the AU market should be to ‘buy dips.
Asian Currencies Technicals
AUD/USD: Move higher continues. Fresh 2-mth highs continue as the AUD/USD heads towards the initial target at $1.0474. Back below the 200 day MA is needed to shift focus lower once more and while we remain above overall focus shifts to tests of the 2012 highs.
GBP Analysis
Opened early Europe at $1.5652, stg0.7849, GBP closed in NY at $1.5648 after rate had recovered through the NY session from lows of $1.5582 to $1.5659.
EUR Analysis
Opened early Europe at $1.2285, EUR/USD closed in NY at $1.2280, after recovering from session lows of $1.2217 to session highs of $1.22878.
JPY Analysis
Opened in early Europe at Y78.57 and Y96.46 Opened in Asia at Y78.80 and slipped ahead of the Tokyo fix on Japanese name supply. The pair extended losses, flushing stops to Y78.47 as dealers noted unwinds of long positions by trading accounts, as BOJ/MOF action still proves elusive to dips. USD bounced to Y78.55 and […]
Behavioral Finance: Daily Forex Outlook: ‘Fiscal cliff’ is Bernanke’s definition of deterioration
EUR USD (1.2290) The impact of the looming ‘fiscal cliff’ in the US has been a common theme of market discussions in recent weeks. That the expiration of the Bush-era would be a drag on an already weak economy is clear; many observers fear an outright recession.