OctaFX_Farid Posted May 7, 2014 Author Share Posted May 7, 2014 United States EIA Crude Oil Stocks change down to -1.781M in May 2 from previous 1.698M Read more in Forex News OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 07, 2014 OctaFX.Com News Updates Fed's Yellen: QE taper to continue in 'measured steps', no specific timeline for rate hike FXStreet (Łódź) - During the Q&A part of the testimony Janet Yellen says that as long as inflation is moving towards the 2% target and the USeconomy improves the Fed anticipates reducing the QE program in “measures steps.” • "There is no mechanical formula or timetable for when that will occur," says Yellen when asked about when will Fed start rising rates. • First rate hike will depend on progress made on Fed mandate. • “I can't give a number for the appropriate size of the Fed's balance sheet.” • Ultimately it will move down to substantially lower levels but no certainty that it will return to pre-crisis levels, the Fed head says. OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 07, 2014 OctaFX.Com News Updates Fed's Yellen: Slack in labor market remains considerable FXStreet (Łódź) - Yellen says that a high degree of monetary accommodation is warranted given the considerable slack in the labor markets and low inflation. • “There is a high level of long-term unemployment,” she stresses. • The 6.5% threshold for considering interest rate hikes was set when unemployment rate was near 8%, Yellen reminds, emphasizing that it was a benchmark not a trigger. • The trend of increasing inequality in income and wealth in the US could be offset by the Fed's efforts to boost growth. • The Fed head acknowledges low household formation, high student debt, high house credit requirements. • She adds however that the sector should pick up and that despite higher mortgage rates they are low by historical standards. OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 07, 2014 OctaFX.Com News Updates GBP/USD deflates to 1.6960 FXStreet (Edinburgh) - The sterling is grinding lower on Wednesday, dragging the GBP/USD to test session lows in the 1.6965/60 region. GBP/USD correcting from peaks Spot continues to correct from Tuesday’s multi-year peaks in levels just shy of 1.7000 the figure following the risk-off mood in the global markets. Next of note in the UK economy will be tomorrow’s BoE MPC meeting, with market consensus expecting the central bank to keep its ‘on-hold’ stance. However, as the unemployment rate is now below 7%, market participants will closely follow the statement or announces (if any) in such regard. “While we remain above the 1.6775/1.6825 zone the risk opens up for tests on the next resistance levels located at 1.6960/80 initially, followed by 1.7150 and final extension target comes in around the 1.73 area”, noted Paul Robson, Senior FX Strategist at RBS. GBP/USD levels to watch At the moment the pair is losing 0.04% at 1.6966 with the immediate support at 1.6900 (psychological level) ahead of 1.6870 (10-d MA) and then 1.6866 (low May 7). On the upside, a breakout of 1.6997 (2014 high May 6) would aim for 1.700 (psychological level) and finally 1.7044 (high Aug.5 2009). OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 07, 2014 OctaFX.Com News Updates GBP/USD deflates to 1.6960 FXStreet (Edinburgh) - The sterling is grinding lower on Wednesday, dragging the GBP/USD to test session lows in the 1.6965/60 region. GBP/USD correcting from peaks Spot continues to correct from Tuesday’s multi-year peaks in levels just shy of 1.7000 the figure following the risk-off mood in the global markets. Next of note in the UK economy will be tomorrow’s BoE MPC meeting, with market consensus expecting the central bank to keep its ‘on-hold’ stance. However, as the unemployment rate is now below 7%, market participants will closely follow the statement or announces (if any) in such regard. “While we remain above the 1.6775/1.6825 zone the risk opens up for tests on the next resistance levels located at 1.6960/80 initially, followed by 1.7150 and final extension target comes in around the 1.73 area”, noted Paul Robson, Senior FX Strategist at RBS. GBP/USD levels to watch At the moment the pair is losing 0.04% at 1.6966 with the immediate support at 1.6900 (psychological level) ahead of 1.6870 (10-d MA) and then 1.6866 (low May 7). On the upside, a breakout of 1.6997 (2014 high May 6) would aim for 1.700 (psychological level) and finally 1.7044 (high Aug.5 2009). OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 07, 2014 OctaFX.Com News Updates Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted May 7, 2014 Author Share Posted May 7, 2014 Gold tumbles below $1,300 FXStreet (Córdoba) - Spot gold bottomed after Yellen speech at $1,294 and reached the lowest price since last Friday. Before the statement the yellow metal was weak moving away from the highs. Gold finds resistance near $1,315 On European hours XAU/USD rose to test the key short term resistance area around $1,315 but failed to break and reversed. The downside accelerated below $1,308 and after the Fed’s Chairman initial words plummeted below $1,300. Gold remains near the lows and currently trades at $1,296, $10 below the price it closed yesterday as President Putin said that Russian troops pulled back from Ukraine border, easing tensions. OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 07, 2014 OctaFX.Com News Updates Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted May 8, 2014 Author Share Posted May 8, 2014 USD/CAD bounces off 1.0870 FXStreet (Edinburgh) - The greenback is now gathering pace against its neighbour on Thursday, extending the USD/CAD rebound from session lows in sub-1.0870 levels. USD/CAD consolidates below 1.0900 The pair continues to stabilize below the 1.0900 key handle, keeping the lower end of the weekly range after Tuesday’s deep pullback. In the data front, US Initial Claims dropped to 319K in the week ended on May 2 and Canadian Housing Starts rose to 194.8K on an annual basis in March, exceeding estimates. “The first relevant retracement level stands at 1.0958 and, from there, a more assertive climb would require breaching 1.1019 — the next retracement level, which coincides with the 40-day MA”, said Shaun Osborne, Chief FX Strategist at TD Securities. USD/CAD levels to watch As of writing the pair is down 0.10% at 1.0891 with the next support at 1.0874 (low May 6) ahead of 1.0860 (38.2% of 1.0182-1.1279) and then 1.0858 (low Apr.9). On the upside, a break above 1.0961 (high May 6) would open the door to 1.0980 (21-d MA) and finally 1.1007 (high May 2). OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 08, 2014 OctaFX.Com News Updates ECB's Draghi: ECB comfortable with acting in June FXStreet (Łódź) - During the Q&A part of the press conference Draghi says that he is waiting for ECB staff inflation projections which will be available at the beginning of next month. • Draghi says that the Governing Council discussed taking action and that the “ECB is comfortable with acting in June.” • Low inflation in the Eurozone is mainly caused by lower energy prices. Weak demand, high unemployment and FX are other reasons, the ECB chief suggests. • Stronger euro combined with lower inflation “is cause for serious concern.” • “The exchange rate is not a policy target, but the concern over the exchange rate will have to be addressed.” OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 08, 2014 OctaFX.Com News Updates ECB's Draghi: ECB comfortable with acting in June FXStreet (Łódź) - During the Q&A part of the press conference Draghi says that he is waiting for ECB staff inflation projections which will be available at the beginning of next month. • Draghi says that the Governing Council discussed taking action and that the “ECB is comfortable with acting in June.” • Low inflation in the Eurozone is mainly caused by lower energy prices. Weak demand, high unemployment and FX are other reasons, the ECB chief suggests. • Stronger euro combined with lower inflation “is cause for serious concern.” • “The exchange rate is not a policy target, but the concern over the exchange rate will have to be addressed.” OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 08, 2014 OctaFX.Com News Updates Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted May 8, 2014 Author Share Posted May 8, 2014 Euro loses shine as Draghi says 'comfortable with acting next time' FXStreet (Córdoba) - Draghi takes the wind out of euro's sails by hinting at June action. He said the ECB is comfortable with acting "next time", sending the shared currency to fresh lows versus most competitors. However, many analysts are doubting the ECB will actually deliver next month as the central bank has let the market down this path in the past. Nevertheless, his words were enough to halt EUR short term rally. The EUR/USD lost more than 100 pips in a matter of minutes and dropped from a 2 ½-year high of 1.3992 to a daily low of 1.3878. The EUR/GBP fell to a nearly 3-month low of 0.8187, while the EUR/JPY hit a 10-day low of 141.09. "Reading between the lines, it appears that even if Draghi himself wanted to ease policy, he is institutionally constrained by the need for consensus", said Marc Chandler, analyst at BBH. "Several of the creditor countries, led by Germany, are more worried about interest rates being too low for too long then the lowflation. Note that as the euro area expands, the ECB is going to adopt a rotating voting basis, and this will add a new wrinkle into ECB meetings next year". OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 08, 2014 OctaFX.Com News Updates Turkey Treasury Cash Balance fell from previous -4.64B to -9.29B in April Read more in Forex News OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 08, 2014 OctaFX.Com News Updates Turkey Treasury Cash Balance fell from previous -4.64B to -9.29B in April Read more in Forex News OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 08, 2014 OctaFX.Com News Updates Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted May 8, 2014 Author Share Posted May 8, 2014 Oil prices higher on China FXStreet (Edinburgh) - Malcolm Graham- Wood, Independent Analyst, noted the recent Chinese data was behind the higher prices of crude oil. Key Quotes “The oil price rose yesterday as a number of factors had an impact, none more so than the Chinese data which came in two forms. The economic stats which beat consensus were good, particularly in the export figures whilst the oil numbers were even more surprising. Crude oil imports for April were up 22.4% m/m and the y/y figure was up 11.5%, I had speculated that they would be buying more a little while ago but this figure was even higher than that” “The EIA inventory numbers were similar to the API ones the day before and therefore caught the Wall Street scribblers off guard once again but that comes as no surprise. A crude draw of 1.8m barrels was set against forecasts of a build of 1.4m and given refineries are buying ahead of the driving season was no great surprise. Finally it seems that President Putin is being a tad more conciliatory regarding the Ukraine but then again when did we ever believe anything on that front”. OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 08, 2014 OctaFX.Com News Updates EUR/JPY breaks below 141.00 and falls to 3-week lows FXStreet (Córdoba) - The EUR/JPY is falling sharply on Thursday as the Euro remains weak in the market. Recently the pair broke below 140.80 (previous lows) and tumbled to 140.59 hitting the lowest price since April 15. At the moment trades at 140.63, down 0.79% for the day so far. The euro is having the worst day in a month against the Yen and is headed toward the lowest daily close since April 8. EUR/JPY breaking range Since mid April the pair has been moving sideways around 141.50, with moves limited between 142.40 and 141.00. But today price is breaking decisively to the downside, pointing out to further weakness. OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 08, 2014 OctaFX.Com News Updates EUR/USD stabilizing around 1.3850 FXStreet (Edinburgh) - The intraday decline of the EUR/USD seems to have halted around the 1.3855/50 region at the end of the US session on Thursday. EUR/USD hurt by Draghi A more than expected dovish tone in today’s press conference by President Draghi dragged spot from fresh ytd highs near the psychological barrier at 1.4000 to current weekly lows in the mid-1.3800s. The EUR reacted adversely after Draghi favoured some form of monetary easing in the central bank’s next meeting (June). “In the context of his repeated mentioning of the exchange rate, we now believe the ECB will cut its refi rate by 15bp June, to be accompanied by a 15-45bp cut in the marginal lending rate and by several other measures to strengthen the effectiveness of this rate cut”, commented Elwin de Groot, Senior Eurozone Strategist at Rabobank. EUR/USD levels to watch At the moment the pair is down 0.37% at 1.3857 and a breakdown of 1.3847 (21-d MA) would open the door to 1.3812 (low May 2) and then 1.3796 (daily cloud top). On the upside, the initial hurdle aligns at 1.3995 (2014 high May 8) ahead of 1.4000 (psychological level) and then 1.4100 (psychological level). OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 08, 2014 OctaFX.Com News Updates Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted May 9, 2014 Author Share Posted May 9, 2014 AUD/USD's recovery capped at 0.9375 FXStreet (San Francisco) - The Aussie's recovery from 0.9345 against the US Dollar found buying interest at 0.9375 level where the pair was rejected to the downside and now it is trading at 0.9355. Currently, AUD/USD is trading at 0.9361, down 0.14% on the day, having posted a daily high at 0.9381 and low at 0.9347. The FXStreet OB/OS Index is reflecting neutral hourly conditions, while the FXStreet Trend Index is slightly bullish. AUD/USD levels Next support to the downside can be found at 0.9347 (Daily Low), 0.9338 (Hourly 100 SMA), 0.9330 (Weekly Classic R1), 0.9329 (Daily Classic S1) and 0.9318 (Yesterday's Low). Resistances are at 0.9363 (Daily Classic PP), 0.9366 (Hourly 20 EMA), 0.9375 (Daily Open), 0.9375 (Weekly High) and 0.9381 (Daily High). OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 09, 2014 OctaFX.Com News Updates United States Wholesale Inventories registered at 1.1% to beat expectations (0.5%) in March Read more in Forex News OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 09, 2014 OctaFX.Com News Updates United Kingdom NIESR GDP Estimate (3M) climbed from previous 0.9% to 1% in April Read more in Forex News OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 09, 2014 OctaFX.Com News Updates India Trade Deficit Government: $10.09B (April) vs previous $10.51B Read more in Forex News OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 09, 2014 OctaFX.Com News Updates GBP/USD hits fresh 1-week low FXStreet (Córdoba) - The GBP/USD is stretching to fresh lows at the beginning of the American session after the release of the UK GDP estimation by NIESR. The GBP/USD came under strong pressure and triggered stops below 1.6900, accelerating to a 1-week low of 1.6831. With the data barely affecting the pair, the Cable is currently trading at 1.6840, 0.53% below its opening price. The UK GDP Estimate released by the National Institute of Economic and Social Research on Friday showed that 1% growth in the three months to April, following a 0.9% increase in the three months to March. GBP/USD technical outlook “In the 4 hours chart readings are strongly bearish, with a break below 1.6840 supporting a downward continuation towards 1.6770 price zone”, says Valeria Bednarik, chief analyst at FXStreet. ·A recovery above 1.6890 on the other hand should bring some relief on Pound, and see the pair attempting a recovery towards 1.6920”. OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 09, 2014 OctaFX.Com News Updates Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted May 9, 2014 Author Share Posted May 9, 2014 Yen weakness will be slightly delayed, but it is coming - Commerzbank FXStreet (Córdoba) - Esther Reichelt, analyst at Commerzbank notes that absence of further BoJ measures suggests USD/JPY will remain at current levels longer than previously expected, although in the medium term many factors point towards a notably weaker yen. Key Quotes “At present the Bank of Japan sees no need for further action. As a result USD/JPY will remain at current levels longer than we had previously expected”. “However, medium term many factors still point towards a notably weaker yen, as the BoJ will step up its measures in the autumn if it looks as if the inflation target will be missed”. “Moreover market attention might begin focussing again on another issue on Monday: the stubborn current account deficit. This too will put medium term pressure on the yen”. OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 09, 2014 OctaFX.Com News Updates USD/CHF at 1-month highs above 0.8850 FXStreet (Córdoba) - The USD/CHF recently rose to 0.8863 reaching the highest price since April 8 and extended weekly gains and currently is holding above 0.8850. The US dollar is rising further against European currencies after Wall Street opening, while the Swiss Franc is among the worst performers across the board. USD/CHF best week since March The pair is about the end the week with a gain of a hundred pips, the best weekly result since March. All gains were achieved after Draghi’s press conference on Thursday that boosted the US dollar versus the Euro and the Swissy. On Thursday the pair approached 2014 lows but then bounced sharply to the upside. Despite the gains the weekly chart still looks bearish but price has approached a downtrend line originated 10 months ago. OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 09, 2014 OctaFX.Com News Updates USD/CHF at 1-month highs above 0.8850 FXStreet (Córdoba) - The USD/CHF recently rose to 0.8863 reaching the highest price since April 8 and extended weekly gains and currently is holding above 0.8850. The US dollar is rising further against European currencies after Wall Street opening, while the Swiss Franc is among the worst performers across the board. USD/CHF best week since March The pair is about the end the week with a gain of a hundred pips, the best weekly result since March. All gains were achieved after Draghi’s press conference on Thursday that boosted the US dollar versus the Euro and the Swissy. On Thursday the pair approached 2014 lows but then bounced sharply to the upside. Despite the gains the weekly chart still looks bearish but price has approached a downtrend line originated 10 months ago. OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 09, 2014 OctaFX.Com News Updates Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted May 9, 2014 Author Share Posted May 9, 2014 EUR/USD buyers left the building! FXStreet (Edinburgh) - The weakness remains intact around the EUR at the end of the week, currently dragging the EUR/USD to fresh 1-month lows near 1.3750. EUR/USD bearish now? The pair extends its deep pullback from recent ytd tops near 1.4000 the figure, against the backdrop of mounting selling pressure post-ECB meeting. Spot still remains under the sedative effects of Draghi’s presser on Thursday, where he opened the door to further easing in the next meeting in June. “There is strong reason to suspect that ECB action will not have the power to trigger a sustained or sharp downside move in EUR/USD even if policy is adjusted next month. As long as dollar sentiment is weak we expect EUR/USD to remain well supported. We maintain a forecast of EUR/USD1.39 on a 1 month view and while we expect that the USD will win back some ground medium time, we have adjusted higher our 12 mth forecast from EUR/USD1.28 to 1.30”, commented Jane Foley, Senior Currency Strategist at Rabobank. EUR/USD levels to consider The pair is now losing 0.52% at 1.3767 with the immediate support at 1.3740 (100-d MA) ahead of 1.3738 (low Apr.8) and finally 1.3722 (daily cloud base). On the upside, a break above 1.3844 (high May 9) would target 1.3900 (psychological level) and then 1.3997 (2014 highs May 8). OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 09, 2014 OctaFX.Com News Updates Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted May 13, 2014 Author Share Posted May 13, 2014 USD/CAD hits 1-week high FXStreet (Córdoba) - The USD/CAD resumed the upside Tuesday, advancing to a fresh 1-week high during the European session as traders await the BoC quarterly review. The USD/CAD has gathered momentum and is back headed north following a consolidation phase below 1.0900 after the spike that followed disappointing Canadian employment data last Friday. The pair stretched to a high of 1.0922 and it is currently trading at 1.0915, recording a 0.19% gain on the day. US retail sales and the BoC quarterly report are on today's docket. USD/CAD levels to watch In terms of technical levels, if the USD/CAD breaks above recent highs, it could find next resistances at 1.0960 (May 6 high) and 1.0989 (100-day SMA). On the flip side, supports are seen at 1.0890 (May 13 low), 1.0873 (May 12 low) and 1.0813 (May 8 low). OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 13, 2014 OctaFX.Com News Updates EUR/JPY recovery falters after ZEW data FXStreet (Córdoba) - The recovery of the EUR/JPY faltered a few pips shy of the 141.00 mark as disappointing ZEW survey figures from the EZ and Germany put the shared currency back under pressure. The German ZEW sentiment survey showed the indicator for economic expectations fell to 33.1 from 43.2 in April. In the Eurozone as a whole, the index fell to 55.2 from 61.2 the previous month. The euro weakened across the board following the figures, with EUR/JPY dropping more than half a cent to a fresh daily low of 140.25. Having erased completely intraday gains, the EUR/JPY is currently trading at the 140.30 zone, recording a 0.34% loss on the day. EUR/JPY levels to watch In terms of technical levels,the pair could find next supports at 140.03 (May 12 low) and 139.87 (May 9 low), while on the other hand resistances are seen at 140.93 (May 13 high), 141.00 (psychological level) and 141.19 (100-day SMA). OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 13, 2014 OctaFX.Com News Updates EUR/USD remains offered - Investec FXStreet (Barcelona) - Jonathan Pryor, Corporate Treasury Analyst at Investec, remarks the weakness surrounding the euro. Key Quotes "Comments from ECB's Constancio and Nowotny were the highlight of a very quiet start to the week yesterday. Both took a small step back from Draghi's comments on Thursday, saying it is too early to speculate on June action from the ECB." "This puts greater emphasis on the data coming out of Europe later this month, although as Draghi stated during the press conference a key influence on their policy decision will be the ECB staff forecasts and bank lending data due in June. A final point worth noting is that Nowotny also hinted that a package of measures could be considered, with his own view being that a rate cut on its own would be insufficient." OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 13, 2014 OctaFX.Com News Updates Session Recap: Euro weighed by soft ZEW and Buba' story FXStreet (Córdoba) - The euro weakened during the European session and fell to fresh lows versus the dollar and the yen following the release of disappointing ZEW data from Germany and the Eurozone. Meanwhile, a media report suggesting the German Bundesbank may be willing to back stimulus measures from the ECB triggered a stronger selloff. The EUR/USD drop also put the pound and the franc under pressure against the dollar. Elsewhere, the yen and commodity currencies remain little changed as investors await US retail sales data for April. The EUR/USD broke through Friday’s lows and printed a fresh 5-week trough of 1.3709, while the GBP/USD hit a 10-day low of 1.6824. Meanwhile the USD/CHF rose above 0.8900 and posted its highest in over a month at 0.8902. Main Headlines in Europe: Asia EM Express: India awaits election result, Chinese data confirms slowdown What’s the sentiment around the EUR/USD today? Commerzbank and Scotiabank European Monetary Union ZEW Survey - Economic Sentiment missed forecasts (63.5) in May: Actual (55.2) Germany ZEW Survey - Economic Sentiment missed forecasts (41) in May: Actual (33.1) New Australian budget favors business Bundesbank source: Bundesbank open to significant ECB stimulus in June if 2016 inflation forecasts lowered - Dow Jones OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 13, 2014 OctaFX.Com News Updates Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted May 13, 2014 Author Share Posted May 13, 2014 United States NFIB Business Optimism Index registered at 95.2 to beat expectations (94.6) in April Read more in Forex News OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 13, 2014 OctaFX.Com News Updates Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted May 14, 2014 Author Share Posted May 14, 2014 United States Producer Price Index ex Food & Energy (YoY) above expectations (1.4%) in April: Actual (1.9%) Read more in Forex News OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 14, 2014 OctaFX.Com News Updates EUR/USD locked in consolidation FXStreet (Córdoba) - The EUR/USD continues to consolidate in a tight range Wednesday, having stabilized after previous date selloff. The EUR/USD has spent most of the day in a 20-pip range above 1.3700 as investors remain sidelined as they await someone to shed more light on the ECB future action. On Tuesday, media cited unnamed sources stating even the Bundesbank will back ECB easing measures if needed putting Buba’s Head Jens Weidmann’s speech (scheduled at 14:30GMT) in the spotlight. However, the EUR/USD managed to halt the decline at 1.3688 and is enjoying a quieter phase today. At time of writing, the EUR/USD is trading at 1.3707, virtually unchanged since opening. EUR/USD technical outlook Valeria Bednarik, chief analyst at FXStreet notes that the EUR/USD holds a quite neutral technical tone in short-term charts, and commented that as long as it remains below 1.3745 the downside is exposed “with a break below 1.3690 favoring a downward continuation towards 1.3640/6”. OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 14, 2014 OctaFX.Com News Updates EUR/USD locked in consolidation FXStreet (Córdoba) - The EUR/USD continues to consolidate in a tight range Wednesday, having stabilized after previous date selloff. The EUR/USD has spent most of the day in a 20-pip range above 1.3700 as investors remain sidelined as they await someone to shed more light on the ECB future action. On Tuesday, media cited unnamed sources stating even the Bundesbank will back ECB easing measures if needed putting Buba’s Head Jens Weidmann’s speech (scheduled at 14:30GMT) in the spotlight. However, the EUR/USD managed to halt the decline at 1.3688 and is enjoying a quieter phase today. At time of writing, the EUR/USD is trading at 1.3707, virtually unchanged since opening. EUR/USD technical outlook Valeria Bednarik, chief analyst at FXStreet notes that the EUR/USD holds a quite neutral technical tone in short-term charts, and commented that as long as it remains below 1.3745 the downside is exposed “with a break below 1.3690 favoring a downward continuation towards 1.3640/6”. OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 14, 2014 OctaFX.Com News Updates EMEA EM Express: Polish zloty advances as inflation hits 10-month low; Peace talks begin in Kiev FXStreet (Łódź) - Peace talks between Ukrainian and Russian officials, with the participation of Organisation for Security and Cooperation in Europe representatives, have begun on Wednesday in Kiev. On Tuesday Ukraine had suffered the haveiest losses of its troops so far, as pro-Russian militants killed seven of them in an ambush. Earlier on Wednesday Sergei Naryshkin, the speaker of the lower house of the Russian parliament, said that the president elected in the Ukrainian vote scheduled for 25 May would not be legitimate, as long as there is no dialogue with the pro-Russian separatists in the eastern regions of the country. As the RBS economists note, despite the fact that the situation in Ukraine is drifting towards civil war, „the market appears to be taking a view that the economic fallout from this conflict and potential sanctions will be contained.” The Russian ruble reached its strongest level since February on Tuesday, while the RTS Russian stock index gained 1.6% since February. "Russia is planning its first government RUB bond auction tomorrow in more than a month, a sign of investor confidence returning,” the analysts add. "The EUR is modestly weaker and it may be moving somewhat counter to the RUB, reflecting capital returning to RUB after recent flight.” Economic data Polish inflation remained flat month-on-month in April, after rising 0.1% in March, the Central Statistical Office informed on Wednesday. Market consensus pointed to a 0.3% rise. On an annual basis CPI growth slowed down to a 10-month low of 0.3% from 0.7% and below expectations of 0.6%. The lower than expected reading was brought about by “the disinflationary trend in the rest of Europe and yesterday’s downside surprise in Hungary (albeit very specific to local drivers in the country),” in the opinion of Jacqui Douglas, Senior Global Strategist at TD Securities. The Polish M3 Money Supply annual numbers came in at 5.4% in April, up from 5.1% in March and above forecasts of 5.2%. Earlier on Wednesday South Africa published annual Retail Sales for March, which increased by 1%, down from 2.3% in February, a notch below expectations. Furthermore, the South African Business Confidence Index slid to 92.6 in April from 92.7 in March, the South African Chamber of Commerce & Industry said. Technicals Following the release of Polish inflation numbers, the zloty strengthened to 4.1856 against the euro. USD/PLN was up 0.08% at 3.0551. On Tuesday the USD/PLN daily FXStreet Trend Index was slightly bullish, with the OB/OS Index overbought. RSI was at 61 at the last close, and has climbed to 65 so far today. Daily 2-StDev Volatility Bandwidth was shrinking at 95 pips, with ATR (14) expanding at 180 pips. The 1D 200 SMA was at 3.0790, while the 1D 20 EMA was at 3.0315. USD/RUB was down 0.45% at 34.7139 at the moment of writing. On Tuesday the USD/RUB daily FXStreet Trend Index was slightly bearish, with the OB/OS Index neutral. RSI was at 36 at the last close, and so far it climbed to 49. Daily 2-StDev Volatility Bandwidth was expanding at 3362 pips, with ATR (14) expanding at 3489 pips. The 1D 200 SMA was at 33.8589, while the 1D 20 EMA was at 35.4410. OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 14, 2014 OctaFX.Com News Updates GBP/JPY falls to 1-month lows below 171.00 FXStreet (Córdoba) - The GBP/JPY is falling sharply on Wednesday and recently bottomed at 170.61, the lowest price since April 15. Afterwards bounced slightly but it was unable to rise above 171.00. The Pound is among the worst performers across the board weakened after the release of the quarterly inflation report from the Bank of England and M. Carney press conference. On the other side, the Yen is having the best day of the week as Treasuries rise pushing US long term bond yields to 2014 lows. GBP/JPY levels to watch The pair is breaking an important support and finally moving away from 172.00. To the downside, below 170.60, the next support might be located at 170.00 and then 169.30/40 (April lows). OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 14, 2014 OctaFX.Com News Updates Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted May 14, 2014 Author Share Posted May 14, 2014 EUR/USD another attempt to 1.3720 FXStreet (Edinburgh) - Resilience seems to be the name of the game for the euro so far, with the EUR/USD treading water around the upper band of today’s range at 1.3715/20 so far. EUR/USD well supported by 1.3700 Nothing of note in the euro area, as German consumer prices and industrial production in the euro bloc both matched consensus. In another tone, Buba’s J.Weidmann poured some cold water over recent comments regarding the implementation of easing measures in the euro area, stating that any new measure should be thoroughly studied and that nothing is decided yet. In the opinion of Tim Riddell, Head of Global Markets Research at ANZ, “last week’s price action has materially damaged the uptrend and raised the opposing potential that a top may have developed at 1.3995 and that EUR may now be poised for retrenchments back to 1.3520 (38.2%) if not 1.3375 (50%)”. EUR/USD levels to consider As of writing the pair is advancing 0.08% at 1.3714 with the next resistance at 1.3722 (daily cloud base) followed by 1.3741 (100-d MA) and finally 1.3771 (high May 13). On the downside, a break below 1.3689 (low May 13) would open the door to 1.3672 (low Apr.4) and then 1.3643 (low Feb.27). OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 14, 2014 OctaFX.Com News Updates Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted May 15, 2014 Author Share Posted May 15, 2014 EUR/USD little changed on US data FXStreet (Edinburgh) - The shared currency kept the composure after a set of positive results from the US docket on Thursday, with the EUR/USD clinging to the 1.3650 region. EUR/USD supported near 1.3650… for now The pair is now attempting to stabilize the ongoing decline in the mid-1.3600s region so far, after US Claims dropped below 300K for the first time since 2007 and the Empire State index jumped to 19.01 in May from April’s 1.29. Further data showed acceleration in the consumer prices gauged by the Core CPI, rising 1.8% YoY vs. 1.7% previous and headline CPI is back to 2% (last time was July 2013). “Expect initial resistance into 1.3725 while any failure to reclaim 1.3750 may confine the pair lower subsequently. Meanwhile, the 1.3690/00 region may support on initial dips”, suggested Emmanuel Ng, FX Strategist at OCBC Bank. EUR/USD levels to watch As of writing the pair is losing 0.36% at 1.3665 facing the next support at 1.3643 (low Feb.27) followed by 1.3625 (50% of 1.3477-1.3773) and finally 1.3585 (low Feb.13). On the upside, a break above 1.3723 (high May 15) would target 1.3731 (high May 15) en route to 1.3741 (100-d MA). OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 15, 2014 OctaFX.Com News Updates United States Net Long-Term TIC Flows registered at $4B, below expectations ($47.3B) in March Read more in Forex News OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 15, 2014 OctaFX.Com News Updates United States Net Long-Term TIC Flows registered at $4B, below expectations ($47.3B) in March Read more in Forex News OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 15, 2014 OctaFX.Com News Updates United States Capacity Utilization registered at 78.6%, below expectations (79.2%) in April Read more in Forex News OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 15, 2014 OctaFX.Com News Updates GBP/USD recovers from 1-month low FXStreet (Córdoba) - The GBP/USD climbed to fresh daily highs at the beginning of the American session as the greenback lost momentum following a short-lived spike. The GBP/USD managed to recover after hitting a 1-month low of 1.6732 amid broad USD strength and despite solid US data recently released the greenback failed to hold gains. The GBP/USD bounced to a high of 1.6782 and it is currently trading at 1.6775, up 0.07% on the day. GBP/USD technical levels In terms of technical levels, next supports are seen at 1.6722 (50-day SMA) and 1.6700 (psychological level) ahead of 1.6669 (Apr 15 low). On the flip side, resistances could be found at 1.6782 (May 15 high), 1.6800 (psychological level) and 1.6839 (21-day SMA). OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 15, 2014 OctaFX.Com News Updates Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted May 15, 2014 Author Share Posted May 15, 2014 USD/JPY extends decline below 101.50 FXStreet (Córdoba) - The USD/JPY dropped further and fell to 101.29, reaching the lowest price since March 19. Currently trades at 101.50, after bouncing slightly from the lows, down 0.38% for the day so far. The US dollar is falling for the second day in a row against the Yen and could post the lowest daily close in two months. The Japanese currency is the best performer as stocks in Wall Street plummet and US government bonds rise. USD/JPY Eyeing key support Today’s decline pushed the USD/JPY toward the 101.10 - 101.30 area where March and April lows lies. The mentioned area has become an important support in the last months and a consolidation below could signal a potential continuation toward 100.00. OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 15, 2014 OctaFX.Com News Updates Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted May 16, 2014 Author Share Posted May 16, 2014 GBP/USD looks to extend above 1.6800 FXStreet (Edinburgh) - The sterling is now pushing higher on Friday, lifting the GBP/USD to test intraday highs near 1.6820. GBP/USD rebounds from 1.6790 It seems the buying interest returned around the sterling during the European afternoon, with spot now looking to break above the overnight’s congestion pattern and extend the advance beyond 1.6800 the figure. “The strong performance of the UK economy, related market belief that the BoE could move on rates ahead of its own (Inflation Report) expectations, and (for now) diminished political risk as the government’s poll standings improve, justifies a firmer track for GBP that extends beyond the next two quarters”, observed the Currency Research team at BNZ. GBP/USD levels to consider As of writing the pair is up 0.13% at 1.6813 with the next resistance at 1.6840 (21-d MA). On the downside, a break below 1.6727 (23.6% of 1.5854-1.6997) would expose 1.6721 (low Apr.16) and then 1.6700 (psychological level). OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 16, 2014 OctaFX.Com News Updates GBP/USD looks to extend above 1.6800 FXStreet (Edinburgh) - The sterling is now pushing higher on Friday, lifting the GBP/USD to test intraday highs near 1.6820. GBP/USD rebounds from 1.6790 It seems the buying interest returned around the sterling during the European afternoon, with spot now looking to break above the overnight’s congestion pattern and extend the advance beyond 1.6800 the figure. “The strong performance of the UK economy, related market belief that the BoE could move on rates ahead of its own (Inflation Report) expectations, and (for now) diminished political risk as the government’s poll standings improve, justifies a firmer track for GBP that extends beyond the next two quarters”, observed the Currency Research team at BNZ. GBP/USD levels to consider As of writing the pair is up 0.13% at 1.6813 with the next resistance at 1.6840 (21-d MA). On the downside, a break below 1.6727 (23.6% of 1.5854-1.6997) would expose 1.6721 (low Apr.16) and then 1.6700 (psychological level). OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 16, 2014 OctaFX.Com News Updates India Bank Loan Growth declined to 13.8% from previous 14.3% Read more in Forex News OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 16, 2014 OctaFX.Com News Updates USD/JPY pops after solid US housing data FXStreet (Córdoba) - The USD/JPY received a mild boost and printed a marginal new high for the day after better-than-expected US housing data. US housing starts grew 13.2% in April to 1072 K vs. 980K expected, while building permits rose to 1080K vs 1010K expected. The USD/JPY climbed nearly 20 pips on the data and hit a daily high of 101.66 although the movement lacked momentum as investors remain pretty much sidelined ahead of the weekend. USD/JPY technical levels At time of writing, the USD/JPY is trading at the 101.55 area, little changed on the day but headed for its second weekly loss in a row. As for technical levels, the pair could find next supports at 101.30 (May 15 low), 101.10 (200-day SMA) and 100.75 (Feb 5 low). On the other hand, resistances are seen at 101.66 (May 16 high), 101.85 (10-day SMA) and 102.10 (May 15 high). OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 16, 2014 OctaFX.Com News Updates USD/CAD remains capped by 1.0900 FXStreet (Córdoba) - The USD/CAD remained little changed near daily highs after the latest string of US data showed housing starts rose more than expected in April. On the macroeconomic domain, data showed foreign investment in Canadian securities unexpectedly dropped in March, while US housing starts grew 13.2% in April to 1072 K vs. 980K expected. However, the USD/CAD was barely affected, and trades nearly flat at the 1.0880 zone. However, the USD/CAD is on track to post its third weekly loss in a row. USD/CAD technical levels In terms of technical levels, the USD/CAD could find immediate resistances at 1.0890 (May 15 high), 1.0925 (May 13 high) and 1.0950 (21-day SMA). On the other hand, supports are seen at 1.0850 (May 16 low), 1.0813 (May 13 low) and 1.0800 (psychological level). OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 16, 2014 OctaFX.Com News Updates Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted May 19, 2014 Author Share Posted May 19, 2014 EUR/USD around 1.33 in 12-month – J.P.Morgan Private Bank FXStreet (Edinburgh) - Sara Yates, Global Head of FX Strategy at J,P.Morgan Private Bank, keeps the target at 1.33 for the EUR/USD in a 12-month horizon. Key Quotes “In our opinion, EURUSD is unlikely to fall much below 1.35 unless the ECB does something to aggressively reverse its shrinking balance sheet and/or US 10y yields break above 3%”. “We think there is some possibility that the ECB announces its intention to stops its drain of liquidity created by the Securities Market Programme (SMP) at the June meeting. However, we believe this would slow the speed at which the ECB’s balance sheet shrinks rather than increase it”. “We think there remains too much political resistance to launch a quantitative easing programme (which would dramatically increase the size of the balance sheet) and that US yields are unlikely to move substantially higher until Q4 2014”. “We continue to forecast EURUSD at 1.33 in 1 year”. OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 19, 2014 OctaFX.Com News Updates UK housing sector, a challenge for the BoE? - Investec FXStreet (Barcelona) - Jonathan Pryor, Corporate Treasury Analyst at Investec, notes the BoE will be closely watching the developments in the housing sector. Key Quotes "The big story over the weekend was Pfizer’s renewed £69bn bid for AstraZeneca which would create the world’s largest pharmaceutical company if it goes ahead. It remains to be seen how many overtures the UK giant can resist from its American rival and as it stands, the FX markets are yet to factor in a takeover that seems increasingly likely as GBPUSD opened where we left it on Friday." "In other UK news, the rapid growth of the housing market is some cause for concern for market commentators who await to see how the Bank of England will look to take the steam out of the housing sector. BoE Governor Mark Carney, speaking to Sky news over the weekend, talked of ‘deep, deep’ structural problems in the sector and his concern that the BoE itself couldn’t build more houses. He again indicated the BoE would do what it could from its end, via the Financial Policy Committee, with adjustments to lending standards and loan limits on income mentioned." OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 19, 2014 OctaFX.Com News Updates Poland Corporate Sector Wages declined to 3.8% in April from previous 4.8% Read more in Forex News OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 19, 2014 OctaFX.Com News Updates Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted May 19, 2014 Author Share Posted May 19, 2014 EUR/USD back from highs FXStreet (Edinburgh) - After hitting fresh intraday highs beyond 1.3730, the EUR/USD is now deflating to the 1.3720/15 area on Monday. EUR/USD keeps the bid tone Despite a choppy session, spot is managing well to keep the trade above the 1.3700 handle, although it lacks conviction to climb further. Nothing of note in the data universe, with Construction Output in the bloc contracting 0.6% inter-month in March and the Spanish trade deficit widening to €2.05 billion in April. “The broader shape of recent price moves suggests to us that an important top/reversal is unfolding in EURUSD around the 1.40 zone as the rising wedge-like shape to the pattern of trade over the past year implies a rally that is losing momentum”, assessed Shaun Osborne, Chief FX Strategy at TD Securities. EUR/USD relevant levels At the moment the pair is up 0.16% at 1.3716 with the next resistance at 1.3732 (high May 15) followed by 1.3739 (100-d MA) and then 1.3771 (high May 13). On the flip side, a breakdown of 1.3685 (low May 16) would target 1.3648 (low May 15) and finally 1.3643 (low Feb.27). OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 19, 2014 OctaFX.Com News Updates Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted May 20, 2014 Author Share Posted May 20, 2014 ECB's Liikanen: Asset purchase program could be implemented if deflation risks rise FXStreet (Łódź) - ECB Governing Council member Erkki Liikanen said on Tuesday that, should the need arise, the central bank could implement various easing measures at the upcoming meeting, such as a broad-based asset-purchases of securities. Moreover, forward guidance could be strengthened in response to an increase in the deflation risk, Liikanen suggested. In case money markets rise, the possible countermeasures include finalizing SMP sterilization, adjusting the rate corridor, reducing rates or carrying out long-term lending operations. Conducting lending operations or bypassing banks in funding would be appropriate in case of a considerable reduction in bank lending, the ECB policymaker added. OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 20, 2014 OctaFX.Com News Updates GBP/USD keeps the bid tone near 1.6850 FXStreet (Edinburgh) - The buying interest remains intact around the sterling on Tuesday, with the GBP/USD meandering around the 1.6845/50 region. GBP/USD capped by 1.6870 Spot found decent support around the 1.6800 handle, although it could not follow through the area of 1.6870 after UK consumer prices surprised investors to the upside in April. In the meantime, the pair is trading well above the 1.6800 barrier ahead of tomorrow’s BoE minutes. Senior FX Strategist at RBS Paul Robson commented, “Last week we highlighted the shooting star candle and said the risk was for a test into the 1.6775/1.6820 support area (previous resistance), and maybe at a push we might see 1.65/1.66 at some stage”. GBP/USD levels to watch As of writing the pair is up 0.18% at 1.6843 with the next resistance at 1.6875 (high May 14) followed by 1.6883 (high May 13) and then 1.6903 (high May 12). On the flip side, a breakdown of 1.6802 (low May 20) would target 1.6784 (low May 16) en route to 1.6732 (low May 15). OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 20, 2014 OctaFX.Com News Updates GBP/USD keeps the bid tone near 1.6850 FXStreet (Edinburgh) - The buying interest remains intact around the sterling on Tuesday, with the GBP/USD meandering around the 1.6845/50 region. GBP/USD capped by 1.6870 Spot found decent support around the 1.6800 handle, although it could not follow through the area of 1.6870 after UK consumer prices surprised investors to the upside in April. In the meantime, the pair is trading well above the 1.6800 barrier ahead of tomorrow’s BoE minutes. Senior FX Strategist at RBS Paul Robson commented, “Last week we highlighted the shooting star candle and said the risk was for a test into the 1.6775/1.6820 support area (previous resistance), and maybe at a push we might see 1.65/1.66 at some stage”. GBP/USD levels to watch As of writing the pair is up 0.18% at 1.6843 with the next resistance at 1.6875 (high May 14) followed by 1.6883 (high May 13) and then 1.6903 (high May 12). On the flip side, a breakdown of 1.6802 (low May 20) would target 1.6784 (low May 16) en route to 1.6732 (low May 15). OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 20, 2014 OctaFX.Com News Updates USD/CHF hovering around 0.8920 FXStreet (Córdoba) - The USD/CHF peaked during the European session at 0.8937, reaching the highest price since last Thursday but then lost momentum and pulled. After Wall Street opening bottomed at 0.8913 but then bounced slightly to the upside. Currently trades at 0.8920, around the same price it closed yesterday. The USD/CHF remains steady moving in a small trading range between daily lows and under 0.8925. USD/CHF levels To the upside, short term resistance might lie at 0.8925 (intraday level), 0.8935/45 (daily high) and 0.8960. To the downside support could be located at 0.8910/15 (daily low) followed by 0.8900 and 0.8880. OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 20, 2014 OctaFX.Com News Updates Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted May 21, 2014 Author Share Posted May 21, 2014 Mexico Retail Sales (YoY) rose from previous -1.7% to 1.7% in March Read more in Forex News OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 21, 2014 OctaFX.Com News Updates USD/CHF jumps to nearly 1-week highs at 0.8955 FXStreet (San Francisco) - The USD/CHF is trading higher on Wednesday as the pair is joining its negative correlation with the EUR/USD that is testing key 1.3650 level. After jumping around 60 pips in the day from 0.8895, the USD/CHF is pricing at its highest level since May 15 at 0.8955. Currently, USD/CHF is trading at 0.8946, up 0.29% on the day, having posted a daily high at 0.8956 and low at 0.8897. The FXStreet OB/OS Index is reflecting overbought hourly conditions, while the FXStreet Trend Index is slightly bullish. USD/CHF levels According to Matt Bacon-Hall, FXBeat Editor, the important levels to follow in the USD/CHF are 0.8950 (I would expect offers 0.8945-50 playing just ahead of the prior high...also check the hourly time frame… there is a corrective structure unfolding which terminates at 0.8950) and 0.8958 (High of A=C....naturally I would expect covering above here). OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 21, 2014 OctaFX.Com News Updates United States EIA Crude Oil Stocks change below expectations (-0.1M) in May 16: Actual (-7.226M) Read more in Forex News OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 21, 2014 OctaFX.Com News Updates USD/JPY turns intraday positive FXStreet (Córdoba) - The USD/JPY is staging a strong comeback, having turned intraday positive, supported by higher US yields. The USD/JPY has risen more than 70 pips over the last hours, recovering from a 3-month low of 100.82 scored on the back of Kuroda comments as the BoJ Governor sounded pretty optimistic in its post-meeting presser. He said positive cycle in the economy is working and the QE is having the intended effect. However, the yen lost momentum and surrendered gains across the board. At time of writing, the USD/JPY is trading at the 101.50 area, up 0.2% on the day, having hit a peak of 101.55 in recent dealings. USD/JPY technical levels In terms of technical levels, the USD/JPY could find next supports at 100.7 (2014 low Feb 4), 100.62 (50% retracement of 95.80/105.45) and not much till 100.00. On the flip side, resistances are seen at 101.55 (10-day SMA) and 101.66 (May 16 high). OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 21, 2014 OctaFX.Com News Updates Latin America EM Express: Brazil's inflation cools to a 6-month low in May Brazil's Mid Month Inflation growth decelerated to the slowest pace seen since November, according to data published on Wednesday. This is good news for Brazil's central bank which will be able to stop hiking the benchmark rate for now, currently at 11%, in the face of price pressures remaining under control in the last two months. Brazilian CPI slowed to 0.58% in May, following a 0.78% rise seen previously, Instituto Brasileiro de Geografia e Estatistica said on Wednesday. The deceleration was attributed to an easing of increases in foodstuffs' prices. Year-on-year inflation climbed slightly to 6.31% from 6.19%. Meanwhile, Mexican Retail Sales surprised to the upside, rising by 0.8% in March, compared with the 1.3% fall in February and against consensus of a 0.2% decline. Year-on-year Retail Sales jumped 1.7%, following a 1.7% drop and against forecasts of a 1.5% decrease. Technicals At the moment of writing USD/BRL was down 0.14% at 2.2075. On Tuesday the USD/BRL daily FXStreet Trend Index was strongly bearish, with the OB/OS Index neutral. RSI was at 45 at the last close, and has slid to 40 so far today. Daily 2-StDev Volatility Bandwidth was shrinking at 97 pips, with ATR (14) shrinking at 183 pips. The 1D 200 SMA was at 2.3019, while the 1D 20 EMA was at 2.2249. OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 21, 2014 OctaFX.Com News Updates Link to comment Share on other sites More sharing options...
OctaFX_Farid Posted May 21, 2014 Author Share Posted May 21, 2014 USD/CAD looking firmer - TD Securities FXStreet (Guatemala) - Shaun Osbourne, Chief FX Strategist at TD Securities suggested that the USD/CAD is tracking a slightly firmer profile. Key Quotes "USD/CAD is tracking a slightly firmer profile, with the USD maintaining gains above short-term technical resistance in the upper 1.08s seen over the past 24 hours. USD/CAD may not be inclined to move too far today, with key domestic data out later in the week but cross flows may have a pull on the market to some degree. For example, CAD/JPY weakness looks poised to extend back towards the 91 area we think, and may help boost USD/CAD to some degree." "Generally, we think USD/CAD is in a better technical place after last week's consolidation. The lack of downside follow-through interest below the mid/upper 1.08s suggests to us that, from a technical perspective at least, the bear pressure on the USD is moderating at the moment. Gains above trend resistance off the March peak imply a firmer technical trend may be developing at the very least." "More broadly, the topside break out from the narrowing consolidation range (bull wedge pattern) that has been developing over the past few months is inherently bullish and signals that the broader USD bull trend is trying to get back on track." OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official page May 21, 2014 OctaFX.Com News Updates Link to comment Share on other sites More sharing options...
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