Daily Forex News

This week the Bank of England and the ECB meet, both on Thursday, to set interest rates and other monetary policy measures and to discuss their respective economies. Will their comments echo the US Fed’s less pessimistic outlook? Although recent economic survey data suggest that both economies may be starting…

The world economy is currently experiencing its steepest downturn since the 1940s, with global trade expected to contract by 10% this year, see chart a. Global economic output could fall by 2%, with growth in the advanced economies dropping by at least twice this rate, around 4- 5%. This is…

Further signs that the worst of the global economic downturn may be easing weighed on safe haven currencies this week, outweighing fears of a possible global swine flu pandemic. The Japanese yen was the worst performing currency in the G10, declining by 2.3% against the dollar. Demand for the yen…

Currency trading saw its share of rotational themes this week. Over recent sessions a growing chorus of government and central bank officials have said the global economy is getting worse less quickly. Early in the week USD and JPY benefited from risk aversion stemming from the swine flu hysteria, but…

After an initial set back on news of the swine flu outbreak, risk appetites bounced back sharply, sending the USD lower and the JPY-crosses higher this past week. The short-term price action in the JPY-crosses was especially persistent, suggesting the potential for further gains in the weeks ahead, as markets…

Markets look set to break from April’s relatively small ranges, FX emerging from obscurity this year. We continue to favour generalised US dollar weakness and struggling emerging markets caused by re-capitalisation of core businesses. After eight weeks equity indices should run out of steam this month, though we do not…

EUR/USD rebounded further to 1.3385 last week but lacked following through buying to push it further beyond 1.3391 resistance. Nevertheless, the bullish case is mildly in favor as long as 1.2963 support holds. That is, choppy consolidation from 1.3737 has completed at 1.2884 already and rise from there should be…

The strong rebound from 95.61 last week indicates that fall from 101.43 has completed and dampened the immediate bearish view. Initial bias remains on the upside this week as long as 97.96 minor support holds and further rally could be seen. At this moment, a break above 101.43 high cannot…

GBP/USD’s rebound from 1.4395 extends further to 1.4945 last week. While the strength of the rebound is not too convincing, further upside there is no signal of completion before a break of 1.4151 support. A break above 1.5066 resistance cannot be ruled out for the moment. But upside potential should…

USD/CHF dropped further to 1.1269 last week but was held way above 1.1158 support and rebounded. While the near term outlook is rather unclear, favor is mildly on the bearish case as long as 1.1902 resistance holds. That is, choppy consolidation from 1.1158 has completed at 1.1740 and whole decline…