Daily Forex News

So much for a weak US share market in July, or at least the 7% S&P500 surge last week did not indicate weakness. Unfortunately movements of this magnitude are more a sign of the volatility and uncertainty at present rather than a compelling signal of confidence (5 of the last 7 weeks with 5%-plus surges […]

The ifo business climate for Germany could have remained more or less unchanged in July. The US ISM manufacturing index has improved, but the German ZEW economic sentiment has deteriorated. German yield spreads have remained largely stable, with both long-term and short-term interest rates having decreased. The DAX and crude…

After a couple of weeks of ‘risk-off’ trading that started the month of July, risk appetites bounced back this past week largely due to better than expected earnings reports in the US. The rebound, however, follows a similar pattern extant over the last few months: investor sentiment improving on the…

The past week’s full plate of economic indicators provided a clearer perspective of where we are in the recovery process. Businesses slashed production and inventories during the first half of 2009 and likely overdid it. Motor vehicle production, for example, was slashed to around a 3.5 million unit rate during…

After a year and a half in recessionary territory, is the U.S. economy finally turning the corner? The Minutes of the June 23-24 FOMC meeting were released on Wednesday, and revealed that the Federal Reserve has brightened its outlook for economic growth over the forecast horizon. It is important to…

The pound has performed strongly this week benefiting from positive economic data and broad-based USD weakness. GBP/USD closed today at 1.6319, recording an increase of 0.8% over the week. The pound has remained relatively stable against the euro, with EUR/GBP closing at 0.8648 today - a rise of only 0.55%…

Prospects for the economy have improved markedly in the last few months with the news that both consumer sentiment (Westpac Melbourne Institute - July survey) and business confidence (NAB- June Survey) have reached the highest levels we have seen since December 2007. Consumer and business Confidence tend to move closely…

We changed our near term view on dollar last week on the back the drastic turn in market sentiments. Dollar index dropped 77pts to close at 79.49. While it’s still holding above June’s low of 78.33, the index is vulnerable to further decline. The 597 pts (7.3%) rise in DOW…

EUR/USD rebounded strongly last week and reached as high as 1.4165 before treating mildly. The developments argue that price actions from 1.4337 are merely consolidation in the larger rise from 1.2456, probably in form of triangle, and in turn suggests that EUR/USD has not topped yet. Initial bias is neutral…

USD/JPY’s rebound extended to as high as 94.45 but turned sideway since then. As noted before, price actions from 91.79 are treated as consolidation in the larger decline only. Hence, while further rise cannot be ruled out for the moment, upside is still expected to be limited by 94.87 resistance…