Forex Day Trading Blog

FX Market Summary 04-23-2014: Inflation Data Batters Aussie

April 23rd, 2014

Australian dollar volatility was the main feature in Asia on Wednesday. The latest inflation data was weaker than expected with consumer prices increasing 0.6% for the first quarter from 0.8% in the previous three-month period while core prices rose 0.5% from 0.9% previously, both data sets registering sharp misses compared with consensus forecasts. In response, AUD/USD dipped sharply to test support below 0.93 with a soft reading for China’s HSBC flash PMI index reinforcing downward pressure on the currency. Read the rest of this entry »

FX Market Summary 04-22-2014: Breakout Attempts Flounder

April 22nd, 2014

Markets struggled to gain any momentum on Tuesday, unable to make the jump from low trading volumes seen during the Easter period. The dominance of narrow trading ranges also continued to sap trader confidence in attempting more aggressive strategies with moves quickly faltering. Read the rest of this entry »

FX Market Summary 04-21-2014: Trade Data Punishes Yen

April 21st, 2014

The latest Japanese trade data was substantially weaker than expected with a record deficit for fiscal 2013/14 as a modest expansion in exports was dwarfed by a continued surge in imports. The data reinforced a lack of confidence in medium-term Japanese fundamentals and also maintained pressure for a competitive yen even if regional trade stresses intensify. In response, USD/JPY strengthened to a two-week high around 102.60 on Monday with buying pressure compounded by purchases orders from domestic banks. Read the rest of this entry »

FX Market Summary 04-17-2014: Solid Data Protects Dollar

April 17th, 2014

Despite some optimism surrounding the outlook, Fed Chair Yellen remained uneasy over labour-market developments with comments on Wednesday that the pace of recovery remained exceptionally slow despite being generally.  Although the remarks suggested that the tapering programme would continue for now, the underlying tone was broadly dovish and did not provide significant dollar support. EUR/USD was able to hold above 1.3800 and initially moved higher to 1.3840 in Asia on Thursday.  Read the rest of this entry »

FX Market Summary 04-16-2014: Sterling Spikes After Unemployment Fall

April 16th, 2014

The latest Chinese GDP data registered the weakest rate of expansion for 18 months at 7.4% for the first quarter. There was some relief that the data was not even worse and there was no significant damage to global risk appetite. Ukraine tensions were a significant background factor, but the direct impact was limited at this stage. With the Nikkei index moving higher, USD/USD was able to break above the 102.0 level. Read the rest of this entry »