Daily Forex News

The month of June has been characterized by a seemingly endless consolidation in both USD-currency pairs and in many cross-currency pairs as well, not to mention stocks and other major asset markets. Looking back, it’s perhaps easiest to view the consolidation in terms of investor risk appetites and the stabilization…

We have often noted the road to recovery would be long and arduous. The most recent batch of economic data supports that notion. Better news in one area continues to be tempered by setbacks elsewhere. This week’s pleasant surprise was durable goods orders, which showed more strength and breadth than…

U.S. economic data continued to show signs of tentative stabilization this week; but, with debate now focusing on the future exit strategy, markets should heed that whatever current buoyancy exists owes strongly to fiscal and monetary intervention. The training wheels, provided by monetary pump priming, ultimately need to come off,…

After two years of constant downward revisions, OECD this week delivered its first upward revision of global growth in its Economic Outlook (see table). For the US, China and Japan, growth was revised up by around one percentage point, while Euroland growth was on balance unchanged as growth was seen…

During the course of the week, the dollar has retreated somewhat. EUR-USD rose to about 1.41, whereas, towards the end of the week, USD-JPY was around 95.50. The Swiss franc did not follow this movement, however, nor did some commodity-linked currencies such as the Norwegian krone, the Canadian and Australian…

Investors and fund managers will be wondering where to allocate assets as we enter Q3 and H2 2009. Because of Friday’s US holiday, so US Non-farm Payrolls are released Thursday, and a numbers-packed week might trigger some sharp moves over the next fortnight. We still feel that top-quality long-dated fixed…

It was a rather mixed week with sentiments flipped flopped a few times. Dollar weakened against most major currencies in general but remained in familiar range. Markets are still undecided on which way to push the greenback further. Euro staged a strong rebound against Swissy, thanks to another round of…

We are going to have a busy week despite US’ public holiday Friday. The ECB will meet Thursday but will likely keep its policy rate unchanged. On the ‘non-standard’ easing front, we expect more details on the purchase on covered bonds. Moreover, after allotted 442.2B euro 12-month loans last week,…

EUR/USD rebounded to 1.4137 early last week but failed to take out 1.4171 resistance, thus didn’t confirm completion of fall from 1.4337. The three wave structure of the rebound from 1.3747 to 1.4137 argues fall from 1.4337 is still in progress but the bearish case was not confirmed by a…

Some volatility was seen in USD/JPY as it dived to 94.87, rebounded to 96.56 and then weakened back to 95.18 again to close the week lower. While downside momentum is clearly diminishing with bullish convergence condition in 4 hours MACD, there is no confirmation of bottoming yet. Initial bias is…