Daily Forex News

EUR/CHF’s consolidation from 1.3072 continued last week. With 1.3217 minor support intact, another rise cannot be ruled out. But after all, we’d expect upside to be limited below 1.3733 resistance and bring fall resumption. Below 1.3217 will flip intraday bias back to the downside. Further break of 1.3072 will confirm

EUR/GBP’s break of 0.8381 resistance last week suggests that fall from 0.9137 is finished at 0.8067 on bullish convergence condition in daily MACD. Initial bias will remain on the upside this week for further rise to 55 days EMA (now at 8419). Sustained trading above there will further affirm that

EUR/JPY’s rebound from 107.30 extended further to as high as 112.65 last week. While such rebound was strong, there is no change in the view that it’s a correction only. Hence, we’d still expect upside to be limited below 113.40 resistance and bring fall resumption. Below 109.13 minor support will

GBP/JPY continued to stay in converging range last week. The development argues that such range trading is part of the whole corrective rise from 126.73 only and such rise is not completed yet. Initial bias remains neutral this week. Break of 135.99 will target 61.8% retracement of 145.94 to 126.73

The dollar was mostly higher versus its counterparts on Friday but broadly lower for the week as worries on global economic recovery eased. This week the IMF upgraded its forecast for 2010 global GDP growth to 4.6% from 4.2% and the International Council of Shopping Centers said US retail sales

After dropping to recent lows at the end June, risk assets have regained most of that lost ground, but there are some noteworthy differentiations that suggest caution and a lack of conviction continue to dominate. In terms of recoveries, the S&P 500 has effectively recovered all its losses since the

Financial markets showed some appetite for risk this week. Stock indexes posted significant gains across the globe, the US dollar lost ground vis-à-vis its main trading crosses, and 10-yr Treasury yields edged above 3%. Market sentiment was bolstered by the publication of details on stress tests being conducted on European

While there is still plenty of talk about a double dip recession, this week’s economic reports generally downplayed that risk. Much of the talk about a double dip is tied to concerns about so much economic stimulus winding down in a relatively short period of time. The ending of tax

Stronger than forecast employment data from Australia and Canada along with short covering in risk assets boosted the AUD, CAD, NZD and NOK, but doubts over momentum have not disappeared as markets square up to the first reports of US Q2 company earnings. With market positioning still overwhelmingly short EUR,

American equities have had a great week. The Dow is up over 4% (12:00 pm) the S&P 4.1% (21:00 pm), the NASDAQ also 4.1% ((12:00 pm). But in the larger economic context the stock bounce look more like a serious case of eager profit taking on an oversold market than