Forex Day Trading Blog

FX Market Summary 06-25-2014: GDP Shock Undermines Dollar

June 25th, 2014

EUR/USD again found support on approach to the 1.3580 area on Tuesday which discouraged bears and helped spark a rally back to the 1.3600 area.

Market conditions were generally very subdued in Asia on Wednesday with very narrow ranges. Equity markets were generally on the defensive following losses on Wall Street which tended to discourage carry-trade activity. USD/JPY was unable to regain the 102.00 level and consolidated just below this level while AUD/USD dipped to lows around 0.9355. Read the rest of this entry »

FX Market Summary 06-24-2014: Mixed Message From Carney

June 24th, 2014

Markets endured a very lifeless Asian session on Tuesday with very narrow ranges dominating amid a lack of fresh incentives as Japanese reform proposals failed to create any excitement.

As far as the Euro-zone economic indicators are concerned, there was a weaker than expected German IFO index which declined to 109.7 for June from 110.4 previously, the lowest reading for five months, although moves have been relatively limited in an historic context. EUR/USD dipped to lows near 1.3580 before finding solid buying support. Read the rest of this entry »

FX Market Summary 06-23-2014: Solid Data Underpins Dollar

June 23rd, 2014

The dollar held a solid tone against European currencies on Monday without being able to break any key technical levels. China’s HSBC PMI manufacturing index strengthened to a seven-month high of 50.8 for June from 49.4 which boosted risk appetite. The yen was broadly resilient despite a potential pick-up in risk appetite as the USD/JPY edged back below the 102 level. The Chinese data was important in boosting the Australian dollar with AUD/USD strengthening to a high near 0.9450 and close to 2014 highs recorded in early April. Read the rest of this entry »

FX Market Summary 06-20-2014: Dollar Fights Back

June 20th, 2014

Trading conditions were relatively lacklustre during Asian trading on Friday and there were no major data releases on either side of the Atlantic. Volatility did move higher during the day as the dollar looked to stage a recovery from Fed-induced losses.

There was some reassessment by major investment banks of this week’s Federal Reserve policy statement with commentary that the market reaction had either been mis-placed or certainly represented an over-reaction. In this context, there was speculation that Yellen had not been as dovish as originally reported and was more concerned over inflation prospects. Read the rest of this entry »

FX Market Summary 06-19-2014: Yellen Pushes Dollar Lower

June 19th, 2014

The dollar has been under renewed pressure across all the majors during the past 24 hours as failure to meet Fed expectations triggered a shift in positioning.

There were no surprises with the Fed’s actual decision as the bond-purchasing programme was cut by a further US$10bn to US$35bn. There was a slightly more optimistic tone surrounding the economic outlook and a small upward adjustment to the interest-rate projections from individual members. The Fed still remained committed to a very expansionary policy and cut longer-term growth forecasts slightly. Read the rest of this entry »