Market Analysis

09/26/2014 - 13:20
USD/JPY was range bound in the past week: the pair was capped by 109.50 in the upside and supported by 108.50 on the downside. Among the positive factors for this pair we can mention good data from the US and the difference in the monetary policy of the Federal Reserve and the Bank of Japan. In addition, Japan’s welfare minister said that the reforms of the country’s giant pension fund would continue as planned. It was negative for JPY and positive for USD/JPY, as this fund will likely increase...
09/26/2014 - 13:19
GBP/USD traded this week in a narrow range and was clearly looking for further direction. The uncertainty was mainly caused by the Bank of England. It’s not easy to understand its policy. A week ago its meeting minutes were dovish. During the past week, however, Governor Mark Carney said the case for interest-rate increases has become “more balanced.” Such words from Carney supported the pair. Never the less, all British economic data releases in the past week missed the forecasts, and so the...
09/26/2014 - 13:17
Now it’s all about the difference in the monetary policy between the euro area and the United States. This difference makes EUR/USD decline to the new minimums. While German business sentiment fell to its lowest level in nearly 1-1/2 years, US new home sales surged to the highest level in more than 6 years. The yield premium US Treasuries offer over German bunds approached 15-year highs. It means that the US is more attractive for the international capital flows than the euro area, and so is...
09/26/2014 - 13:15
Volatility in FX trading has picked up. The dollar index is ready to show 11th consecutive week of growth. US currency rose as the US economic growth outlook improved increasing the bets that the Federal Reserve will raise interest rates. In October the Fed will end its massive stimulus program, which has been weakening dollar for a long time. In the past week American dollar has significantly strengthened versus the euro and Swiss franc and totally smashed commodity currencies. These...
09/24/2014 - 14:23
By Elizaveta Belugina & Kira Iukhtenko EUR/USD hit our target at $1.2790 (61.8% Fibo of the 2012-2014 advance). Euro was hit by weaker German Ifo index and the data leaked by French TV that the number of people looking for work fell by 11.1K in August, while analysts expected an increase by 16.5K. A close at/below this level will be a bearish sign. From the technical point the attention should be now at $1.2750. Resistance is at $1.2830, $1.2860 and $1.2900. Tomorrow watch US durable goods...
09/24/2014 - 13:33
By Mark Jensen Today my review will be technical. I'd like to mention only that USD/CHF is in a rather strong reverse correlation with EUR/USD. This is easily seen фt the charts, and the news from the US are more important for this pair than those from Switzerland. USD/CHF keeps trading in the 0.9400 area (61.8% Fibo of the decline from 0.9800 to 0.8700). Despite the fact that the overall trend is bullish and rather strong, the pair is capped by this mark for the third week: the bulls lack...
09/24/2014 - 13:30
Alex Weber When will the US dollar continue its rally? Let's observe the USD index in pursuit of answers. DXY holds slightly below its 4-year high on Wednesday, pressured by US airstrikes in Syria and by dovish comments of the NY Fed President Dudley. This week he said a stronger currency could hurt the US economic growth. He doesn't fool us!) The strong bullish trend in USD will clearly remain in place. Dollar index hit 84.86 on Monday; this was the highest level since July 2010. Before that...
09/23/2014 - 13:42
By E.Belugina and K.Iukhtenko EUR/USD corrected up to $1.2900. Tomorrow watch German Ifo business climate data at 08:00 GMT. So far data from Germany have been discouraging, and we have little reason to expect a bullish release this time. If the reading is significantly lower, euro will fall to $1.2810. The next resistance is at $1.2930 and if this level is broken in case of the positive news, euro will probably rise to $1.3000 – a place to enter short positions. GBP/USD rose to the upper...

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