The US dollarcontinued to thrive through the course of last week as heightened anxiety fromthe Euro region forced a global bid for safety. This cautious positioning remainedthe key theme on Friday at the expense of the Euro, Sterling and commodity bloccurrencies with Spain and Greece once again the key elements. Equities fromboth sides of the
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EUR/USD Moving to the daily graph, the pair has ignored the oversold readings appearing on Stochastic resuming the bearishness. Now, the pair becomes very close to 100% Fibonacci retracement of the upside rally from 1.2625 to 1.3485 and a break of which will bring panic sell-off actions over intraday basis. Ultimately, focus should be now
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Gold futures bucked the trend of the broader market and jumped $ 38 or 2.5% on Thursday, the largest percentage increase since 25 October, 2011. S&P fell almost 2% while Stoxx and crude oil both dropped 1.5%. Dollar index rose for 14 consecutive days. The April FOMC minutes revealed that several Fed members were
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Equities Following Wednesday’s sharp drop in Asian stocks, the region rebounded modestly on Thursday. The Nikkei gained .45 to 8876, and the Kospi ticked up .3% to 184, ending a 6-day losing streak. In China, the Shanghai Composite rallied 1.4%, after the government announced a new appliance subsidy, which could boost domestic consumption. Lagging behind,
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There was a try for rebounding this morning above the single currency supporting level against the greenback at 1.2631 which has been the pair formed bottom on 13th of last January but it is still limited below 1.27 but generally the single currency is still suffering from the political risks which are threatening the union
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Forex News and Events: In a race for downgrades, rating agencies took action targeting the two most burdened countries in the EMU. Moody’s confirmed today a rumor about the downgrade of 16 Spanish banks after having downgraded four Spanish regions, which added more pressure to the the Spanish economy. The increase in risk was reflected
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Outlook: The speed of market responses to developments in Europe is shocking. In technical jargon, the slope of the trendlines is abnormally steep. Krugman has an op-ed in the NYT titled “Apocalypse Fairly Soon” advising the European leaders to stop moralizing and start taking action, and the ECB to abandon the Teutonic obsession with inflation
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The Facebook IPO today has temporarily knocked Europe from the headlines as the world’s eyes are focused on the Nasdaq at 1430 GMT/ 0930 ET when Facebook will start trading for the first time. CNBC anchors have been wearing honorary hoodies to mark the occasion so it must be big. I still find it hard
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16:31 (GMT) 18 May No test on 1.2625 for EUR/USD this week, as the Swiss supranational stands his ground – ahead of 1.2700. Despite negative stocks, the EUR has set its weekly range, and looks to head into the weekend on a 1.2700 handle, though we expect lower levels are not quite done yet. In
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Risk sentiment was seen heading lower overnight as news headlines and macro economic data releases continue to support the general bear market direction that has become more apparent in the last two weeks. Fitch downgraded long term credit in Greece from B- to CCC and this, along with negative data from the US was enough
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18:11 (GMT) 18 May 18:10 GMT – EUR/USD bounce was blocked in front of the 1.2749/59 zone,now allowing the mkt to drift back toward the 1.2700/665 support zone at this point.  EUR has had a lower close everyday this week, but if it holds above 1.2693 on the close today, it would break that string
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It’s probably fair to say that markets are now saturated with negatives regarding Greek exit risks, not to mention China hard landing risks. The AUD has after all fallen by around 6.5% in the last 15 trading sessions. Yet, other than 5yr Sovereign CDS on Spain one would be hard pressed to find many market
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EUR/USD The pair settled the week with a net loss of around 200 pips after it was confirmed that the country is to hold yet another round of elections in June, as such, a caretaker is to takeover the running of the country until then. Still, despite the speculation, the country managed to meet its
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With the lack of market thrillers, risky assets rebound on a normal pullback after the recent savage selloff looking with an eye of hope towards the world’s leaders meeting (G8) today. Markets woke up on sharp selloff with the start of the trading session, where majors printed new lows against the greenback before rebounding. The
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Published at 10:39 (GMT) 18 May USD/CAD looks a spent force after its push through 1.0200 earlier today, though player will have been impressed with the gains seen here – fighting through heavy layers of corporate offers all the way up. The next key target area is now up near 1.0400, though as ever, the
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Technical Analysis EUR/USD “The market’s very concerned about contagion and Spain probably being the biggest focus of attention after Greece. If the euro breaks $ 1.26, there’s probably not a lot of stops going to the lows that we saw in 2010” – Rochford Capital (based on Bloomberg) Pair’s Outlook EUR/USD has decided not
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Published at 02:11 (GMT) 18 May Australian PM Julia Gillard said high AUD puts stresses on manufacturing and tourism, Investment pipeline inspires confidence in the economy. – BBG. On FX, ongoing complaints of high AUD from PM Gillard and Aust government, and pressure on RBA to cut Cash Rates further on June 5 and beyond.
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Published at 23:23 (GMT) 17 May 18 May AUD/JPY Daily 23:13 GMT – Sharp decline last session is putting bears back on firm footing with scope for extension towards stronger support at 78.04 before oversold condition sets in to trigger rebound. Selling into upticks still favoured. [W.T] R5: 80.37 14 May high R4: 80.17 *
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14:52 (GMT) 17 May 17 May EUR/HUF Daily 14:40 GMT – Yesterday’s alert to a potental reverse above 294-5 was canclled as the market rallied in late trade to close well. With follow through today as well, this market is through the downtrend (l/t trend flat at least) and right on key 299~ resistance- this
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EUR/USD Despite being under pressure for much of the session, the pair settled little changed after the release of weaker than expected US related macro economic data prompted speculation of yet another QE program from the Fed. The bearish sentiment was driven by reports that up to EUR 1bln was withdrawn from Bankia in Spain
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Published at 10:30 (GMT) 17 May On a day when we see little incentive to trade, intra day players are looking to trip stops through the week’s EUR/USD lows just under 1.2679. As we said earlier on, we know the single unit is a sell, but these markets do not seem to want to allow
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Technical Analysis EUR/USD “The euro will likely remain wobbly for a while until the issue over Greece is sorted out” – Mizuho Corporate Bank (based on WSJ) Pair’s Outlook Following violation of support at 1.2830/12 and 1.2763, EUR/USD is now showing some signs of stabilisation. Therefore the currency pair is likely to consolidate ahead of
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FXstreet.com: Technical: Technical Market View

Risk sentiment was broadly lower overnight after a story in the Wall Street Journal showed that withdrawals from private banks in Greece totaled 700 million Euros on Monday, which indicators a severe lack of confidence in the country’s financial system. The result was another bull move in the US Dollar, and, to a lesser extent,
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EUR/USD The pair settled the session in minor positive territory after it was confirmed that a caretaker is to takeover the running of Greece and a second wave of general elections will take place on June 17th. Also, it was reported that the first meeting between German Chancellor and French President went rather well and
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