Daily Forex News

The NZD/USD slipped further last week, mainly on the back of global risk aversion (the JPY was strong and share prices dropped) and other negative influences on the AUD (RBA say there is scope for further easing of monetary policy, commodity prices declined and there was the unusual cancellation of a Chinese coal shipment).
At 62.8c […]

The German ZEW economic sentiment is only likely to have risen slightly in July. The ifo business expectations and the US ISM manufacturing index have both improved. On the other hand, German yield spreads have narrowed somewhat, as long-term interest rates have decreased more than short-term rates. The DAX and…

The economic data continue to show an economy gradually moving toward recovery. The ISM non-manufacturing survey increased slightly more than expected in June and has now risen convincingly above its 12-month moving average. Such moves have tended to coincide with turning points in the business cycle. The business activity series…

Risk aversion reappeared with a vengeance this past week, in a follow-on move after the weaker than expected US June NFP report undermined prospects for an imminent economic recovery. Rather than a series of weaker data reports as the catalyst, it appears to be more a case of a growing…

Perhaps it is the contrarian nature of economists. It is interesting to note that financial markets have softened up quite noticeably in the last couple of weeks. This is just as the cumulative impact of better-than-expected economic data since March seems to be raising upside risks that real U.S. GDP…

The real positive surprise this week was a sharp increase in both German factory orders as well as German industrial production (See Flash Comment - Euroland: German orders beat all expectations). Factory orders rose 4.4% in May reaching a total rise of 8.5% over the last three months. During the…

EUR/USD turned into sideway trading after dipping to 1.3832 last week. From a short term angle, initial outlook is neutral this week and some consolidation might be seen. But after all, we’s still favoring the bearish case that fall from 1.4196 is still in progress, hence, even in case of…

USD/JPY’s strong break of 93.53/84 support zone and steep dive to 91.79 last week invalidated our bullish view and indicates that USD/JPY has indeed topped out at 101.43 already. With an intraday low in place at 91.79, initial outlook is neutral this week and some more sideway trading might be…

GBP/USD dived sharply to as low as 1.5983 last week before turning into sideway trading. With an intraday low in place, some consolidation might be seen initially this week. However, note that we’re favoring the case that GBP/USD has already topped out at 1.6742. Hence, while another rise cannot be…

USD/CHF continued to gyrate inside range of 1.0630/1.1021 last week without making any progress. At this point, we’re still treating price actions from 1.1021 as consolidation to rise from 1.0630 only. Hence, while some more sideway trading might be seen initially this week, we’d expect any fall to be contained…