Eur/usd
This week was relatively quiet in terms of news, though some important macroeconomic reports were released. Meanwhile, the US dollar was rising against other most-traded currencies and the Dollar Index surged to the highest level in almost three years.
As was expected, the dollar managed to rally despite possible obstacles. The major driver of the gains was speculation that the Federal Reserve will end its quantitative easing program. This week’s macroeconomic data was bad for the most part and, truth be told, did not support the outlook for reduced stimulus. Yet this did not prevent talks about QE end to persist.
The euro had its share of problems that pushed it down against the greenback, the major of which were the miserable GDP reports from Germany, France and the whole eurozone. ...
Throughout the US session today we watch the major pairs narrow trade today as the market is close to close and the week is ending as a result of present technical movements and also the presence of mixed sentiments; fears and hopes, with most of the data this week coming out gloomy or below market forecasts while that today cheerful data was report.
In fact today we saw that the US leading indicators, which is an index designed to forecast economic changes in the upcoming period of time, rose cheerfully in April by 0.6 percent.
While that the University of Michigan Confidence preliminary reading rose cheerfully to 83.7 from 76.4; an indication that confidence regarding personal finances, business conditions and purchasing power gained some strength.
Accordingly the euro is presently ...
US dollar is heading higher today, surging on the latest news from the Federal Reserve. Comments about the Fed’s quantitive easing program — and its potential end this year — are lending strength to the greenback.
The President of the San Francisco Federal Reserve, John Williams, made comments indicating that the current quantitative easing program might end this year. The idea that the efforts to keep the dollar weak might be coming to an end is lending strength to the US dollar.
Greenback is also gaining strength as Forex traders compare the economic situation in the United States with other regions. Even with the somewhat disappointing data from earlier this week, the greenback is still in a relatively strong position — especially when compared to the continued problems in the ...
Quiet session in Europe; EU27 Car Registrations rise for first time in over 18 months
Notes/Observations
BoJ will discuss the related risks and potential effect on its 2% inflation target at its two-day policy meeting next week
EBA to delay EU bank stress tests until 2014, timing of stress tests to depend on EU approval of the ECB as banking supervisor in the euro zone
France President Hollande: Cannot request ECB lower interest rates further; confident Draghi knows what he is doing
China Vice Commerce Minister Jiang: EU is the main instrument for diversifying China FX reserves
EU27 Car Registrations rise for first time in over 18 months
Economic Data
(RU) Russia Narrow Money Supply w/e May 13th (RUB): 7.71T v 7.74T prior
(EU) EU27 Apr New Car Registrations: +1.7% v -10.2% prior; ...
Fundamental Analysis
EUR
"Deflation is perhaps becoming more of a risk than inflation for the eurozone, although it remains unlikely for now at least."
- HIS Global Insight analyst Howard Archer
Consumer prices hike in the 17-nation economy has slowed to the lowest level in more than three years, as fuel and telecommunications costs dropped substantially, the EU statistics office, Eurostat said Thursday.
Read more: FULL REPORT - Fundamental Analysis
Technical Analysis
EUR/USD
"U.S. bond prices gained sharply yesterday despite William's comments. Each market has its own interpretation now and there's no broad consensus on the Fed's stance yet."
- Bank of Tokyo-Mitsubishi UFJ (based on CNBC)
It looks like 1.2874/46 will be unable to withstand bearish pressure and thus will give in, ...
The euro and Japanese yen are poised to extend their weekly slumps, as the dollar ruled currencies market with a rod of iron on the back of the Federal Reserve`s stimulus outlook, rooting the greenback near a 10-month high against a six-currency basket.
Traders saw a hectic session on Thursday and volatility was evident, as the dollar gained momentum against majors, only to end the session right back where it kicked off. The U.S. currency, however, was up again approaching the highest level in ten months.
The USDIX, an index which tracks the performance of the U.S. dollar against six major currencies including the euro, pound and Japanese currency, was up 0.20 percent at 84.06 as of 09:52 GMT+2 today, near its multi-month high of 84.22 hit two days ago.
Dollar gain was fueled today ...
Sunrise Market Commentary
Rates: Global bonds finally react on weaker US data
It took some time, but finally bonds reacted positively to another batch of weaker US data. That may have ended the downward correction that started after the US May payrolls release. However, there is as of yet no reason to become overly bullish for bonds.
Currencies: Dollar ignores poor US eco data
The recent slide of EUR/USD slowed, but the pair failed to profit from a series of poor US eco data. Fed speakers, including governor Williams, continue the debate on the tapering of asset purchases. These expectation are putting a strong floor under the dollar. The trade-weighted dollar is still near the key 84.10 level
The Sunrise Headlines
US equities suffered first losses this week with S&P 0.5% lower. Whereas ...
Morning Briefing : USD continues to gain momentum ahead of expected Fed hawkishness
What's new :
Asia: Equity indices mostly positive but seem hesitant
Japan: Notoceable turnaround in Machine orders
Forex: Aussie and Kiwi continue to tumble
Overnight rates and Indices:
EUR/USD 1.285 1.289 -0.12 %
USD/CHF 0.9638 0.9687 -0.16 %
GBP/USD 1.5232 1.5286 -0.17 %
USD/JPY 102.08 102.57 -0.24 %
EUR/CHF 1.2421 1.24526 -0.05 %
EUR/JPY 131.48 131.94 -0.12 %
Dow Jones 15215.82 15302.49 -0.27 %
Nasdaq 2997.47 3019.04 -0.10 %
S&P 500 1648.60 1660.51 -0.50 %
Nikkei 225 14902.30 15157.32 0.67 %
Shanghai 2248.41 2287.57 1.57 %
Gold spot 1375.70 1393.02 -0.70 %
Crude Oil 94.84 95.52 0.10 %
...
Today`s Asian session notice quiet trades among major currencies versus dollar near yesterday`s closing levels amid the absence of important economic data in the U.S. today.
Japanese economy noticed today a noticeable jump in machine orders index reading for the month March by 14.2% from a previous of 7.5% confirming Japanese rebounding.
Japanese yen continue its trade near its lowest levels in four years versus dollar, where selling operations for the yen increased amid the recent stimulus plans in Japan to reach the targeted 2% inflation.
USD/JPY pair slightly inclined today to record high of 102.36 after starting today`s session at 102.12. EUR/JPY pair traded in a narrow range today to 131.70, while the GBP/JPY pair traded near 156.10.
Euro slightly fell versus American dollar today, ...