Forex News

Today’s highlights: EUR/USD: Bullish “outside” Thursday through 50% retrace barrier (1.4456) aims at 1.4572 today, with overshoot risk to 1.4735 into early June USD/JPY: Further support probes, but a resilient consolidation theme pervades with 80.34/16 support intact.  Threat into next week remains up to the 200-DMA (82.58)

G10 Currencies EUR-USD: Rumours regarding a new rescue packet for Greece are abounding since it has become clear that there is an additional funding shortfall in the Greek budget.

Summary EUR/USD has enjoyed a revival over the past two weeks, largely based on optimism that Greece will successfully secure additional aid to finance it through 2012 and possibly 2013.

EUR Risk took its lead from equities for the latter part of the session yesterday , a swathe  of weaker data across Europe and then a woeful ADP print  piled the agony’s on the  market and the final nail in the  coffin was  the Moody’s downgrade to CAA1  which took  euro$ to the lows of […]

USD/CHF has again sold off and remains on course for the base of an 8 year channel at .8364. Note with a Fibonacci extension, point and figure count and the base of the channel all coming in circa .8400-.8364, we are alert to the idea that we will see reversal here.

News BY: Positive – Belarus requests IMF package (p2) BG: Neutral – April cumulative budget shortfall falls to 0.7% of GDP (p2) CZ: Negative – Manufacturing PMI eases to 55.9 / Neutral – State budget deficit widens reaching 60% of the full-year plan (p2)

The UK construction PMI edged up a little in May, and increases in the new orders, employment and business expectations series as well meant that the detail of the survey was also largely positive.

Cuba share the same rating as Greece: I wonder if the Cubans are upset . With yet another Greek  package on the table ,  the market temporarily  shrugs off Euroe’s woes ,  but it took a sea of red in the equity space to knock the Euro off it’s perch .

The strong rejection from 1346 S&P 500 is bearish. As this SCR noted on Tuesday, that level is a key pivot and so such a powerful rejection is a good sign that the longer term top in stocks is in. Five micro waves down in EUR-USD provides the kick off to the next leg down […]

Markets like US data weak – but not that weak. Global growth concenrs may well be overblown, but until data provides some reassurance, risk will not rebound. Favourite ‘risk off’ trades v. USD are short CAD, SEK, NZD; In Xs long NOKSEK, short CADJPY & GBPNOK.

G10 Currencies USD: Surprisingly bad US economic data published yesterday (ADP +38k new jobs rather than the expected 175k; ISM 53.5 instead of the expected 57.1 index points) did not put any pres-sure on the dollar but was seemingly ignored by the FX markets.