Forex News

EUR/USD trades back at the 61.8% Fibonacci retracement at 1.4569 and we still remain unable to rule out a deeper corrective phase to 1.4732, the 78.6% retracement. This is regarded as the last defence for the 1.4940 May peak.

Rates were unchanged today as expected. The statement was more dovish than the early-May official statement, partly due to weaker data since then, though we wouldn’t read too much into it.

HK session wrap: A very quiet start to the Asian session as several markets return after a long weekend. EURUSD opened on firm demand from macros testing the 1.4600 level, We have rallied on the open to 1.4630…no reserve flow seen direct , but there is demand to buy a dip…so suggestions of deamdn from […]

TOP Australia’s central bank held interest rates steady at 4.75%  as widely expected and sounded in no hurry to lift what are already the highest rates in the developed world, sending the AUD lower. CPI to remain close to target over next 12 months

An imminent accident happening in Greece has been averted but the question for next year’s funding still remains open. In light of the ongoing political debate, and some disconcerting headlines regarding Spain in particular, initial intra-EMU spread recovery has hit resistance. Valuations should remain headline driven today with the macro calendar relatively empty. Fed Chairman […]

The Reserve Bank of Australia (RBA) decided to leave the cash rate at 4.75% following today’s board meeting. Furthermore, the statement that accompanied the rate decision was little changed from last month’s statement (see summary tables below), including the concluding paragraph:

At the June 7 Board meeting the decision was taken to keep rates on hold. We had expected that decision given the difficulties associated with raising rates only one week after the economy was reported to have contracted by 1.2% in the March quarter.

With stocks breaking below key levels, risk aversion is clearly in the markets… S&P500 under 1291 and EuroStoxx50 exiting a bearish flag surely makes longs waver…

Since our report published in March (TRY: sell until the normal service resumes), the panorama for the Turkish lira has not changed. If anything, the FX vulnerability has increased further.

The Turkish central bank is not having an easy time. Despite its efforts to prevent a widening of the current account deficit there are no signs of improvement so far.

EUR/PLN: Remains sidelined and should continue to trade between the 4.00 level and its 2011 uptrend line. EUR/HUF: Is seen bouncing off the 265/263.06 support zone but should stay below the 271.15 May peak.