Bearish Gap Which Is Currently

Forex News and Events: With China on holiday negative risk sentiment ran rampant in Asian trading. Regional indices were hit hard with the Nikkei down -2.40% and Hang Seng falling -3.40%. Even strong import and export numbers released from China could produce much optimism. Pressure mounted on the EUR Friday, as traders became very concerned with the eurozone prospects. Italian and Spanish 10yr yields remain comfortably above 5%, while Greece CDS prices continued to climb to astronomical levels. Last week, German Finance Minister Schaeuble stated that Greece was on a "knife's edge" and today that is precisely the feeling within the financial markets. Late Friday, rumors began to spread and drift into mainstream media that Greece was planning to default over the weekend. Also amongst the ...

With both the US and Canada away on holiday liquidity will be tight in the North American trading session which may allow for a brief pause in the decline of the EUR versus the USD and CHF. Economic News USD - Slowing but Not Stalling Growth The disappointing data from the US economy continues to roll in. Friday's NFP report showed the US failed to add new jobs in the month of August. Average hourly earnings fell to -0.1% from a gain of 0.5% which takes a bit of the bite out of last week's strong personal spending data. The number of aggregate hours worked also declined. In contrast to Europe the US economy is stalling but not contacting. This will likely bring policy responses from both the fiscal side as well as the monetary policy side. With pressure from Republicans, President ...

Traders will witness the release of moderately significant reports on inflation at the consumer and retail level in the UK today at 9:30 GMT. Should the figures reveal stagnation in inflationary growth, we could see heftier flights to safety in the days and weeks ahead, pushing the GBP lower as a result. Economic News USD - USD Resisting Market Bearishness The US dollar (USD) was experiencing short swings yesterday as investors anticipate what impact this week's housing data will have on the weakened US economic outlook. The greenback had found moderate strength in the morning hours, but soon pared its gains as investment data turned sour. The value of safe-haven assets like the Swiss franc (CHF) and Japanese yen (JPY) have been buoyed by a shift away from higher yielding assets, ...

Investors are still worried and anxious over the worsening outlook for the global recovery from deepening debt crisis, a threat to U.S. fiscal stability and slowing global growth. Stocks are trending lower in Europe after the stress test results were published further undermining the financial stability in the European continent and currencies continued to decline to haven assets amid high uncertainty and perceived inability of European leaders to solve the debt crisis! Risk aversion is clearly evident in the market with the rally for the franc and gold to new records on intensified fear that the debt crisis is out of hand as euro area leaders prepare to meet in Brussels this Thursday to discuss the area’s financial stability with slim hope seen that they can resolve the crisis and ...

Commentary of the NZD/USD pair : A strong correction occured on the pair NZD/USD which is currently testing the upper band of its bearish channel. The bearish gap has been filled in. We maintain to trade only short positions as far as the pair is moving into its channel. A return below 0.81 will comfort our bearish feeling and the breakout of 0.8050 will give a new sell signal. However, in case of exit of the channel, a buy signal will be given. We will then advise to trade the pair according to 0.8121. See the previous analysis of the NZD/USD pair of June 28th, 2011

Forex News and Events: Events in Greece have once again become the dominate driver for FX. USD remained in demand carrying over from Fridays close, as the weekend news flow suggested continued uncertainty around the austerity vote this week. EU Peripheral sovereign debt yields continued to widen against German bonds (Italy vs. German 10yr govt bond yield spreads widens to a euro lifetime high of 218bp) and S&P continue to come under selling pressure dropping -1.17% on Friday. Asian equity markets were unable to halt the bearish slide with the Nikkei down -1.03%. Greece’s parliament is expected to vote on last week's EU delivery austerity package (expected Wed or Thur). Last week, PM Papandreou’s social party's successful navigation through the “no confidence” vote suggested that the ...

USD The dollar has generally kept a bid tone overnight as markets remain wary ahead of further Eurozone event risk this week. The Greek parliament is due to vote on last week’s agreed austerity package on Wednesday/Thursday and many fear a repeat of last week’s politically-induced volatility. Despite some positive headlines both from within Greece and the Eurozone, as well as pledges of further Chinese support from Premier Wen Jiabao – who arrives in Berlin this week for talks – the lack of a comprehensive solution continues to undermine the currency. On the US side, the Fed’s relevant decisions last week have clearly given the dollar a boost, but there is still a material difference between ceasing fresh easing and tightening, and questions remain over the US’ ability to weather more ...

Today's data releases out of Europe and the United Kingdom regarding short-term interest rates will likely be predominant in today's market valuations and traders would be wise to keep an eye on policy statements. The buck is still weakening from the rate differentials, but dovish statements from Europe today may close part of that gap. Economic News USD - US Dollar Declines to 3-yr Low as Data Disappoints The US dollar experienced bearish results yesterday as traders began to shift away from the greenback following a string of negative data sets which underlined the weakness of the dollar versus its primary rivals. The USD initially moved lower against the safe haven Swiss franc and Japanese yen yesterday on global concerns, while stocks and commodities began to trade flatter in ...

The most pressing concern in the commodities market lately has been a fear that the global economy cannot sustain sufficient growth with oil prices reaching above $100 a barrel. Investors witnessed the price of oil drop from as high as $113 last week to around $106.50 this morning. But adding into this downturn was a weakness in raw-materials prices seen over the last two trading days that inflicted pain on the stock market yesterday as commodity-linked companies felt losses as a result of this decline. Economic News USD - US Dollar Suffers as Fed Budget Balance Falls Short of Expectations The US dollar's short-term bullish run seems to have met resistance following the release of the US Federal Budget Balance yesterday at 19:00 GMT. The EUR/USD fell to as low as 1.4377 by mid-day on ...