Monthly Archives: October, 2010
GBP/USD: Trading the Change in U.K. Jobless Claims
The U.K. labor market is expected to weaken for the second consecutive month in September, and the rise in unemployment could lead the British Pound to extend the decline from earlier this week as the outlook for future growth deteriorates.
EUR/USD Regains Footing as Fed Signals QE, Will Corporate Earnings Derail Momentum?
The EUR/USD erased earlier losses as the Fed minutes showed that policy makers were ready to add to their quantitative easing efforts in the near-term if the economy showed signs of weakening. Dollar weakness has driven the pair higher which has seen its correlation with risk strengthen to 65% from 45% a month ago, as [...]
EUR/USD Becomes Scalping Target Ahead of FOMC Minutes
The EUR/USD has seen its month long rally slow as speculation grows that the FOMC may not be on the door step of added stimulus. The Fed announcing that it stands ready to do whatever it takes to ensure that growth continues and deflationary pressures remain at bay, sparked broad based greenback weakness- driving the [...]
GBPUSD Traders Shift Their Focus to the U.K. Jobless Claims Report
Jobless claims in the U.K. are expected to rise 4.5K in September after climbing 2.3K in August, according to the median number of economists surveyed by Bloomberg News.
Forex: U.S. Dollar Benefits From Flight To Safety But FOMC Minutes Could Spark Shift Market Sentiment
The U.S. dollar continued to bounce back against most of its major counterparts on Tuesday, with the EUR/USD slipping to a low of 1.3886, and the greenback is likely to face increased volatility throughout the day as the Federal Open Market Committee is scheduled to release its policy meeting minutes at 18:00 GMT.
Daily Sound Bites 10.12
See what comments have been hitting the wires and moving markets today….
USD Graphic Rewind; Dollar Index Rises for First Time in a Week
Is the dollar index in the process of carving out a base finally or simply in a period of consolidation, look inside to find out…
Recipe for US Dollar Recovery Being Concocted in Tuesday Trade
Tuesday is feeling more and more like a reversal day, and we could very well see some broad based profit taking of currency long positions back in favor of the Greenback.
Crude Oil Falls on Profit Taking, Gold Moves Higher Despite Dollar Rally
In the push-pull battle between a brightening economic outlook and profit taking, the latter won out—at least in the case of crude oil. For gold, the pattern was the same, with the metal notching yet another record high.
Dollar at Risk as All Eyes Turn to FOMC Minutes To Gauge QE Potential
The FOMC minutes may set the tone for short-term price action, if they reveal that policy makers took steps toward additional stimulus measures. The dollar has been battered with expectations of more QE, and market participants will scrutinize the comments and vote to determine the likelihood that action will come at the next meeting.
FOREX: US Dollar to Extend Gains as Fading QE Hopes Stir Risk Aversion
US Dollar looks set to rise on risk aversion as QE expectations fade following unexpectedly hawkish commentary from the US Fed officials.
FOREX: Dollar Edges Higher as the Collective Fed Talk Takes a Modest but Tangible Hawkish Shift
On an exceptionally light trading day, the US dollar would recover a little lost ground. Skeptical speculators could easily attribute this to a natural correction during a trading lull. However, there was a modest fundamental drum beat to entice a more meaningful and perhaps lasting reversal given the right support going forward.
Tame Trading for Crude and Gold Underlined by Low Volume
Commodity trading was relatively light to start the week. A modest retracement from US oil would push the commodity back into a broader range and while gold pushed to a record high close, the pace was exceptionally restrained.
Dollar at Risk as All Eyes Turn to FOMC Minutes To Gauge QE Potential
The FOMC minutes may set the tone for short-term price action, if they reveal that policy makers took steps toward additional stimulus measures. The dollar has been battered with expectations of more QE, and market participants will scrutinize the comments and vote to determine the likelihood that action will come at the next meeting.
GBP/USD: Trading the U.K. Consumer Price Report
The headline reading for U.K. inflation is widely expected to hold above the government’s 3% limit for the eighth time this year, and the data is likely to spark increased volatility in the exchange rate as investors weigh the prospect for future policy.
GBPUSD Under Pressure Ahead of the U.K. Inflation Report
Consumer prices in Great Britain are expected to remain unchanged at 3.1 percent for the month of September from a year ago. This report is of particular importance due to the fact that inflation is used by the Bank of England in making rate decisions.
AUD/JPY Consolidation Presents Scalping Opportunity
The AUD/JPY has been in a tight range since its spike higher following BoJ intervention. The high yielding Aussie continues to find support as expectations for additional stimulus from the U.S. and U.K. has kept broader risk appetite firm.
Bank Research Consensus Weekly 10.11.10
USD remains under pressure, and EUR/USD is now close to 1.40. This is the weakest USD has been since the beginning of February this year and translates into a drop in value against EUR of around 17% since June.Driving EUR/USD higher is, not least, the market’s expectation of divergent monetary policy in the US and [...]
Forex: U.S. Dollar Mix On Thin Trading, Euro Holds Tight Range
The Euro fell back from a high of 1.4006 during the overnight trade to maintain the narrow range from the end of the previous week, and the exchange rate may hold steady throughout the day as the economic docket remains fairly light for Monday.
Forex Fundamental Trends Monitor 10.11.2010
Speculation about another round of QE from the Federal Reserve remains the central issue for the US Dollar and financial markets at large.
USD Graphic Rewind; Dollar Index Forming a Bottom?
Take a look inside to see what moved the dollar index in trade on Friday…
US Dollar Policy Ambiguities; A Closer Look
The latest IMF meeting failed to produce any meaningful results and market participants are back to focusing on the prospects for another round of quantitative easing from the Fed. While a USD bottom appears to be no where in sight, we would recommend that investors be checking their blind-spots, as a rally could very well [...]
Crude Oil Benefits from Economic Outlook, Gold Supported by Weak Dollar
The new week in commodities will feature a push-pull between upside momentum catalyzed by economic optimism and profit taking considerations as traders seek to lock in huge gains.
Will Non-Farm Payrolls Spark Speculation For Increased QE?
The spotlight this week will be placed on the U.S. nonfarm payrolls report for the month of September. As of late, economists are forecasting the labor market in the world’s largest economy to decline 5K after employment tumbled 54K in August. Tomorrow’s NFP report is crucial for the U.S. economy as concerns of additional QE [...]
USD/JPY Presents Scalping Opportunity Ahead of Non-Farm Payrolls
The USD/JPY extended its decline below major support at 83.00 as it cleared the pre-intervention low of 82.86, as markets show no fear of additional actions from the BoJ. The pair is at its lowest levels in 15 years which has it approaching oversold levels on a daily chart.
Forex: British Pound Breaks Out As BoE Maintains Current Policy, U.S. Dollar Weakness Persists
The British Pound rallied to a high of 1.6017 during the European trade as the Bank of England maintained its current policy, and the exchange rate may continue to push higher going into the end of the week as it breaks out of its narrow range.
Daily Sound Bites 10.7
See what comments have been hitting the wires and moving markets to day…
ECB Says Rates are "Appropriate"; Inflation Expectations Remain Firmly Anchored
As widely expected, the European Central Bank kept rates unchanged at 1.00 percent for the month of October, and President Jean Claude Trichet said that rates remain “appropriate.” At the same time, the central bank head went onto add that underlying momentum is positive, while noting that concerns remain due to renewed market tensions. Meanwhile, [...]
USD Graphic Rewind; DXY Keeps Falling As Yen Touches Fresh Highs
What has the dollar index been doing in the last 24-hours? To find out look inside….
Crude Oil Gains After Bullish Inventory Report, Gold Hits a new Record on Relentless Dollar Decline
Bullish enthusiasm continues to grip the financial markets, which once again buoyed crude oil and gold prices. With the U.S. jobs figure on tap for this Friday, we may be due for a bit of profit taking.
Australian Dollar Spotlight: The Case Against the Antipodean
There is no doubt that the Australian Dollar is a very intense uptrend which has resulted in the price surging back to its post-float highs. But upon closer examination, we are increasingly suspicious of the relative strength and attempt to mount a compelling case for a major trend reversal.
FOREX: Euro, Pound Mark Time as BOE, ECB Rate Decisions Loom Ahead
The Euro and the British Pound braced for impact ahead of rate decisions from the ECB and the BOE, consolidating in narrow ranges in overnight trade.