Forex Market
USD/JPY Analysis
USD/JPY was last trading at Y79.91, higher on the session by 5 pips, having traded a range of Y79.80 to Y79.00. The pair spiked to the session highs mid-session, following renewed jawboning from Japanese officials.
Asia today: A mild hawk bias to RBA minutes; Bernanke up next
Reserve Bank of Australia minutes were the highlight of a slightly busier Asian session today. The RBA kept rates unchanged at 3.5 percent at the last meeting and the minutes showed members felt there was no need for further adjustment after recent “hefty cuts” and signs the economy has more momentum than previously thought.
Behavioral Finance: Daily Forex Outlook: BoE unblocks the credit plumbing
EUR USD (1.2240) On Friday, the USD-index retreated smartly from the year-high achieved one day earlier. Indeed, in the space of just one hour it covered the entire ground from the day’s high to the day’s low – and this without any obvious catalyst.
GBP Analysis
Opened early Europe at $1.5568, stg0.7860, GBP closed in NY at $1.5573, after tracking EUR/USD NY rally, extending its recovery off session lows of $1.5414 (Europe-Thursday low of $1.5393).
JPY Analysis
Opened in early Europe at Y79.11 and Y96.85, opened in Asia at Y79.15 and with Tokyo closed the pair traded a very tight Y79.06- Y79.32 range, with some suggesting the perception of reduced intervention risk due to the holiday.
EUR Analysis
Opened early Europe at $1.2237, EUR/USD closed in NY Friday at $1.2245, having seen a late rally that had taken it from lows of $1.2162 to session highs of $1.2257.
Technical Analysis
Risk is a tad less off which holds corrections likely… EUR/USD Setup for modest correction… GBP/USD Challenging resistance above… USD/JPY SETUP FOR A 78.60/55 TEST… EUR/SEK Correction towards 8.66\71?…
FX Market Technical Research
EUR/USD: Recovers 5-DMA, But Studies Remain Weak. The EUR recovers the 5-day moving average, which turns initial support at $1.2230, but studies remain weak and bulls need to recover the 21-DMA to re-establish themselves.
GBP/USD Analysis
Closed in NY at $1.5573, after tracking EUR/USD NY afternoon rally, extending its recovery off session lows of $1.5414 (Europe), as well as lows seen Thursday of $1.5393.
EUR/USD Analysis
Closed in NY Friday at $1.2245, having seen a late rally that had taken the rate from lows of $1.2162 to session highs of $1.2257. Rate extended this recovery into early Asian trade, moving up to $1.2274 in an orderly move with Asian traders suggesting stops above $1.2285 were the early interest.
Asia today: Bernanke QE hopes lift risk appetite (for now)
A Tokyo holiday ensured a quiet Asian session with risk currencies locked at slightly higher levels after the strong rebound seen towards the close on Friday.
Asian Currencies Technicals
AUD/USD: $1.0101-1.0330 range likely this week. Previous break below the 21 day ma was reversed sharply with the pair pausing at the 100 day ma.