Forex Market
Euro posts new lows, but no conviction
Developments were rather few and far between today after another dubious set of data were released from China. Euro touched a new local low vs. the USD, JPY and GBP but there was no conviction in the move.
GBP Analysis
Opened early Europe at $1.5435, stg0.7908, GBP closed in NY at $1.5432 after seeing lows in this session of $1.5393, holding above tech support at $1.5390 (76.4% $1.5269-1.5778).
JPY Analysis
Opened in early Europe at Y79.29 and Y96.73, opened in Asia around Y79.30 and lifted to Y79.40 ahead of the Tokyo fix, before easing back to settle in a tight range with Japanese officials again jawboning, underlining the risk of intervention on a move lower.
EUR Analysis
Opened early Europe at $1.2207, EUR/USD closed in NY at $1.2203, after recovering off session lows at $1.2166. Rate dropped back from an early high of $1.2210 to $1.2181 in opening Asian trade as market reacted to Moody’s downgrading of Italy’s bond rating.
GBPUSD: 1.50 test in the pipeline?
GBPUSD has avoided a fall below the massive 1.5250 area support so far this year, but its days above that level – and perhaps even 1.50 – may be numbered.
Technical Analysis
USD/JPY to catch up with falling US bond yield… EUR/USD Losing momentum… USD/JPY Time to catch up with bonds… GBP/USD It was a bear fla… EUR/SEK Mid body test accomplished… USD/SEK Still in the doldrums… EUR/NOK Trying it below the line… NOK/SEK Bigger bounce than thought.
FX Market Technical Research
EUR/USD: Studies Remain Weak. The EUR is still under pressure amid weak daily studies and trade remains within the falling Bollinger band of $1.2145, allowing more room for bears to extend the $1.2168 low.
GBP/USD Analysis
Closed in NY at $1.5432 after seeing lows in this session of $1.5393, holding above tech support at $1.5390 (76.4% $1.5269-1.5778 and 1.618% swing of the recovery from $1.5462 to $1.5578).
EUR/USD Analysis
Closed in NY at $1.2203, after recovering off session lows at $1.2166. Rate dropped back from an early high of $1.2210 to $1.2181 in opening Asian trade as market reacted to Moody’s downgrading of Italy’s bond rating.
Asia today: China Q2 growth slides to 3-year low; muted reaction
The Asian week finished with a bang as China’s Q2 GDP numbers came in slightly below expectations, though not enough to cause too much of a stir.
Asian Currencies Technicals
AUD/USD: Takes out the 21 day moving average. Back below the 21 day MA has seen initial focus shift to tests of the $0.9972-99 region with a close back above the 21 day MA needed to hint at $1.0100-1.0330 range trading ahead.
Market throws a tantrum on positive US jobless claims
A very positive weekly US jobless claims number (or was it?) sees risk off and the USD rallying as it frustrates this QE-seeking market. The USD rally is very much back on track.