News / Page 13

European Session – Dollar picks up ahead of FOMC minutes; yen outperforms; pound weighed by data

Posted on February 22, 2017 at 3:18 pm GMT

The US dollar was stronger against most major currencies except against the yen, which broadly outperformed. The euro was weak on French election jitters. The main focus of the markets was on the upcoming FOMC minutes. The euro hit a fresh one month low against the dollar at 1.0493 after dipping below the key 1.05 level for the first time in six-weeks. The single currency was pressured mainly by political developments rather than by economic data. Concerns over the upcoming French [..]

Forex News – Mexican peso surges 2% after central bank launches hedge program to defend currency

Posted on February 22, 2017 at 2:48 pm GMT

The Mexican central bank, Banco de Mexico (Banxico), surprised the markets yesterday when it announced it is launching a $20 billion hedging program to stem further declines of the Mexican peso. The move is designed to act as an alternative to currency intervention without eating into foreign exchange reserves. By auctioning currency hedges, the central bank can use derivatives such as dollar swaps to intervene in the spot market. Banxico has been struggling to defend the Mexican peso, which has [..]

Technical Analysis – USDMXN bearish bias persists under 50-day moving average

Posted on February 22, 2017 at 11:14 am GMT

USDMXN weakness persists below the 50-day moving average. After consolidating just above support at 20.2007, the pair fell sharply below this level on Monday to reach a low of 19.9230. Since RSI is in bearish territory below 50, there is scope for further losses to target 19.5036, which is where the 200-day moving average currently lies. This 19.5036 level was tested as a resistance level back in October. A break of this support area would pressure USDMXN lower, towards 18.1518 [..]

Asian Session – Dollar falls against yen ahead of FOMC minutes; euro under pressure on political woes

Posted on February 22, 2017 at 8:34 am GMT

The dollar was weaker against the yen as markets await the FOMC minutes due later in the day for clues about the Fed’s views on interest rates. The euro remained under pressure by European political concerns. The yen was supported by comments from Bank of Japan Governor Haruhiko Kuroda who said that the chance of negative rates is low in the near future. Meanwhile, Japanese Finance Minister Taro Aso made similar remarks. The dollar slipped to an Asian session low [..]

Technical Analysis – GBPUSD looking neutral in the short-term

Posted on February 22, 2017 at 8:04 am GMT

GBPUSD is up from the day’s open. Should it finish the day higher it will mark the third straight day of gains for the pair. The RSI indicator is currently close to the 50 neutral level at 52. It’s been hovering in this area throughout the last number of days of relatively low intra-day volatility for the pair. The middle Bollinger line (a 20-day moving average) comes into view as immediate resistance to upside moves. Should this level be breached, [..]

European Session – Euro falls despite robust PMI numbers; Dollar broadly stronger

Posted on February 21, 2017 at 4:34 pm GMT

The most important economic releases for the day pertained to flash PMI estimates out of the Eurozone and the US, whilst the day had important central bank figures, such as the Bank of England’s Governor Mark Carney, appearing for a speech. The US dollar was gaining across the board today on rising expectations of a March Fed rate hike. The dollar gained against all six currencies that make up the dollar index as the index rose to 101.49, marking a [..]

Investment Theme – Australian dollar underpinned by rising commodity prices and surge in exports

Posted on February 21, 2017 at 3:50 pm GMT

The Australian dollar has been moving steadily higher since the start of this year, mainly due to the resurgence in commodity prices. As result of surging prices for iron ore and coal, which are what Australia mainly produces and exports, there has been an improvement in the country’s terms of trade. This has driven the aussie higher, resulting in more than 6 percent gain so far this year. Meanwhile, a steadying Chinese economy is also beneficial for the Australian economy [..]

Technical Analysis – NZDUSD decline halted at 200-day moving average; outlook neutral

Posted on February 21, 2017 at 3:32 pm GMT

NZDUSD has come under significant downside pressure since touching a 3-month high of 0.7375 on February 7. The two-week downtrend has seen the pair retrace almost 50% of the December-February upleg from 0.6861 to 0.7375. After a sharp drop earlier in the day, prices found support just below the 200-day moving average, which is currently at 0.7130. The RSI and the MACD are giving out mixed signals about the near-term bias, with the RSI looking bearish around 43 and the [..]

Forex News – Eurozone business activity hits 6-year high but euro sags

Posted on February 21, 2017 at 11:54 am GMT

Economic activity in the euro area expanded at the fastest pace in nearly six years in February according to Markit’s flash PMI readings. The surprise surge in output was broad based with both the services and manufacturing sectors performing strongly, and new orders and employment also rising sharply over the month. The flash estimate of the Eurozone manufacturing PMI rose from 55.2 in January to 55.5 in February, beating forecasts of 55.0. This was the highest figure in almost six [..]

Technical Analysis – Gold falling, more than offsetting yesterday’s gain

Posted on February 21, 2017 at 8:10 am GMT

Gold has been falling in today’s trading so far with the decline more than offsetting yesterday’s rise. The RSI indicator is at 60, well above the 50 threshold distinguishing positive from negative short-term sentiment. As regards the stochastics, the %K line is in bullish territory as well. A note of caution though as it has just crossed below the slow %D line. This might hint that the intra-day down movement could continue. The February 8 fifteen-week high of 1244.58 could [..]

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