The dollar continues to flex its muscles at the start of a new week, basking in the aftermath of last week’s robust GDP data. While it’s no surprise to learn that there was no emergency fix to the Eurozone’s fiscal troubles over the weekend, it was a surprise to learn…
The USD is trading mixed as the UK Times reports of a possible crackdown on carry trades and Asian equities trade a three month low, the UK Times article sparked unwind of JPY carry trades in Asian trade, report that EU manufacturing PMI is at a two-year high limits EUR…
With the pair ending the week lower, it is currently seen under pressure targeting the 1.5892 level, its Jan 0710 low and then the 1.5830 level, its Dec 3009 low. A cut through the latter will turn attention to the 1.5706 level, its Oct 1309 low where the pair may…
Our outlook on AUDUSD remains lower as a follow through to the downside on its past week losses was seen in todays trading session. While the pair trades and holds below the 0.9173 level, its Dec 1409 high and the 0.8936 level, its Jan 0410 low, we see risk of…
The previous month closed at its lowest levels for euro. The area of 1,3850 was reached as expected and a further dollar rise is possible, especially towards 1,3750, where important support is found. However, euro remains in oversold levels and an upward reaction is possible, but it should be corrective,…
Cable has dipped further following the data releases that showed an annual decline in UK home prices and decline in the number of mortgages granted. As mentioned earlier we might see further dip towards 1.5830-00. The 55-DMA (currently at 1.5754) is the significant Support seen on the downside. Any sharp…
Despite an initial sell off, the EUR has performed well in European hours moving higher across the board in line with the narrowing in the spread of Greek bond yield spreads vs bunds. Comments from the EUs Alumnia that Greeces plan to cut its budget deficit was ambitious but achievable…
Negative risk sentiment is still clearly the driving theme in the FX markets. Last week, already skittish investors were hit with the trifecta of problems. Rising CDS spreads on sovereign debt, worries that China would take a less accommodative stance in monetary policy and political risk in the US (take…
Dollar/Yen climbed on Friday, as expected, from 89.67 up to the 90.83 top, where the bullish momentum was limited, closing the week at 90.22. On the 1 hour chart there is a well formed wide downward channel, the upper limit of which was touched on Friday. Going bellow last Wednesday’s…
The GBP exhibited weakness in the session with dealers attributing its initial soft tone to fixing-related flows. The UK Manufacturing PMI data also highlighted the positive effect of a GBP currency as the data series hit a 15-year high as the new export orders and output were the main contributors….
