Forex News
Too much EURUSD focus and what does it mean?
There’s little to report after a quiet holiday weekend as Europe and North America are taking a well deserved break from trading. Still, it’s useful to ponder the extreme speculative positioning in the US currency futures market.
MARKET ANALYSIS
EUR/USD: As long as 1.3199 (reaction high from 1.2945) holds, downtrend from 1.4940 may resume later this week and a daily breach of 1.3000 would re-test of 2011 low at 1.2860. But as daily indicators would display ‘bullish convergences’ on next decline, support at 1.2774 would contain weakness.
Bank of Japan November Minutes:
Some Bank of Japan board members repeated that the expansion of BOJ’s asset purchase program has had some effects on the market, the minutes of the BOJ’s Nov. 15-16 meeting released Tuesday showed.
USD/JPY ANALYSIS
The pair is likely to trade in a tight range today in Asia, with investors refraining from taking fresh positions due to the closure of many overseas markets for the Christmas break and ahead of the approaching New Year’s break.
US Summary
Ahead of holidays and the year-end, the few traders manning their desks Friday didn’t make many moves. Ten-year Italian bond yields once again climbed above 7%, helping keep the EUR in check against the USD and JPY. The common currency remains relatively range-bound just north of the psychologically important $1.30 level.
Can US economy pull Europe out of its debt vortex?
Last US economic data presents before Christmas Yesterday economic data out of the US showed yet again that the patient is alive as initial jobless claims came in very strong for the second consecutive week pushing the 12-week rolling trend figure further down. Also the leading indicators came in better than expected driven by a […]
Markets want to stay quiet until 2012. Will they be allowed to?
With yesterday’s US House of Representatives move to temporarily extend the key payroll tax cut and other measures, the odds are rising that we ease quietly into the New Year, even if volatility may return quickly in January.
GBP/USD ANALYSIS
Opened early Europe at $1.5681 stg0.8334 GBP closed in NY at $1.5680, having settled back around this level after recovering from session lows of $1.5649. Rate marked lows in early Asia at $1.5671 before edging higher, the rate pushing up to $1.5700 before meeting resistance.
EUR/USD ANALYSIS
Opened early Europe at $1.3069 EUR/USD closed in NY at $1.3050 and drifted higher through the Asian session, extending the recovery off NY lows of $1.30165 to retest NY highs at $1.3080 (61.8%$1.3120/1.3016) before early Europe extended the move on to $1.3095 (76.4%).
Increased volatility creates squeeze opportunities at close
The uncertain nature of any attempted quick-fix solution to the European debt crisis has had an abnormal influence on all of our global trading markets. Increased volatility is the watchword. The amplitude of daily trading ranges has definitely increased, but more aggravating is the increased frequency of sudden reversals, the whipsaw effect that most traders […]
ECB Overnight Deposits – New 2011 High
Use of the European Central Bank’s overnight deposit facility reached a new record high for the year Thursday, suggesting recent measures by central banks and policy makers still aren’t enough to restore confidence in inter-bank lending markets.
Light hearted summary of 2011
“You can’t learn in school what the world is going to do next year” – Henry Ford. 2011 has been an extremely volatile year in financial markets, driven largely by the rapidly deteriorating events of the Eurozone sovereign debt crisis and the resultant bank sector liquidity squeeze. Global growth almost ground to a halt in […]