Archive for June, 2008
EUR/USD managed to rebound again off the lower boundary of the last few months trading range. The official explanations of the move were the high HICP in Eurozone and some articles about the future FED policy. The forex market probably was dissapointed by the G8 meeting where the dollar weakness was not discussed as expected. [...]
Finance ministers from the G8 nations said surging food and fuel prices have replaced the credit squeeze as the biggest threat to the world economy. They also spoke out in favor of a strong dollar. Next week we will see if the markets got the message. It is clear that the weak dollar is one [...]
EUR/USD is trading with heavy tone. Various officials are trying to talk the dollar up. Some ECB board members are explainign that the rate hike in July will be one time event and not a start of another series of rate hikes. Today’s results of the Lisbon treaty referendum in Ireland could be very interesting. [...]
Yesterday EUR/USD broke below the 20- and 50-days Moving Averages. Market bias is to the downside and before the end of this week we can see a test of the strong support levels @ 1.5365 and 1.5280. A break below the latter will boost the dollar with next targets 1.5145 and 1.4965. Upside corrections should [...]
GBP/USD couldn’t close above the upper boundary of the descendig channel. The focus is again on the downside. Support is @ 1.9535 and 1.9460. Key level is 1.9335.
If you watch the forex market in the last few days you can wonder what is the purpose of the central banks. Obviously it is to create intraday volatility and provide more opportunities for the speculators to make lots of money. Yesterday Hank Paulson and Ben Bernanke caused another 2 big figures move in EUR/USD [...]
The Cable rebounded along with other currencies against the dollar after the release of the NFP report. GBP/USD is still in consolidation mode but if the pair breaks above the 1.9850 resistance the chart will become constructive. Next levels on the upside are 1.9965 and 2.0000/25.
U.S. payrolls dropped 49,000 in May. The jobless rate increased to 5.5 percent from 5 percent, the biggest jump since February 1986. Of course this cause another round of massive dollar sell off. Euro gained 2 big figures against the greenback which seems normal these days. The Average true range for 100 days period is [...]
This week the central bankers decided the shake up the forex market. First Ben Bernanke, then JC Trichet talked the dollar up and down. The dealers are probably scratching their heads and wondering which way to move the market in the next few weeks. Tomorrow’s NFP report will give them a clue. Technically speaking, today [...]
The rally in EUR/USD today turned into a huge selloff after Bernanke’s speech and the factory orders data. Fed’s Chairman said that the inflation impact of (a weak) USD is significant. This surprised the forex market players and massive dollar buying sent EUR/USD almost 2 big figures lower. In the coming days we can [...]