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Fundamental Analysis
EUR
"The EBA stress tests were really dependent on whether the ECB was ready to do its own asset quality review in the second half of the year."
- Andrew Stimpson, a London-based banking analyst at Keefe Bruyette & Woods Ltd
As the European Central Bank is set to take centre stage as the region’s chief banking supervisor, banks across the Eurozone are going to face tough regulatory scrutiny of their balance sheets.
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Technical Analysis
EUR/USD
"It’s the U.S. economy that’s in the vanguard, and that explains why the dollar continues to advance. The Federal Reserve might exit its quantitative easing sooner than later, while the BoE is going to do more QE and the ECB is favored to do more."
- Miller Tabak & Co. (based on ...
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 ...
www.sunbirdfx.com
Good morning traders...
USD is still strong across the board.
In our previous analysis - http://www.sunbirdfx.com/forex-education/daily-analysis/2013-05-14 , we suggested to sell the EUR at 1.30 area, with stop above 1.3050, this trade got to tp1 and profited around 150 pips!!!
We believe this trend will continue and we can see more drops in all the pairs against the USD, it is possible that we will experience some corrections along the way, but all in all , the USD is your best friend right now.
Nitay Bar
Chief analyst
Fundamental Analysis
EUR
"The first-quarter contraction reinforces pressure on the ECB to come up with further measures to try and support euro-zone growth."
- Howard Archer, an economist at IHS Global Insight
The 17-nation economy has slumped into its longest recession ever, as the economic activity in the region fell for a sixth quarter in a row. Gross domestic product in the Eurozone shrank 0.2% in the first three months of 2013 after a 0.6% decline in the previous quarter, and below analysts’ expectations of a 0.1% slump.
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Technical Analysis
EUR/USD
"The euro zone GDP data reinforced expectations of additional easing from the ECB."
- Commonwealth Foreign Exchange (based on CNBC)
Even though EUR/USD was facing a strong support zone at ...
Fundamental Analysis
EUR
"Despite mostly positive economic data for the German economy, the ZEW indicator remains at the level of the previous month."
- ZEW President Clemens Fuest
Confidence among businesses in Europe’s largest economy improved slightly this May, however, less than expected, adding to signs the economic outlook worsens as the Euro region remains mired in recession.
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Technical Analysis
EUR/USD
"The dollar remains the king of the hill in currency markets."
- CMC Markets (based on MarketWatch)
A bearish breakout from the channel up revived the sell-off, which has pushed the price already beneath the moving average for 55 days. At the moment a line at 1.5240/33 is an obstacle for continuation of the leg down, while a monthly ...
Last friday, the Gold (XAU/USD) has continued its bearish rally and has validated the downward breaks of 1370 and then 1360 points (new sell signals).
This bearish rally is led by a new short term bearish slant (blue line on the 1H chart).
The price found support last night on 1340 points (lows of mid-April) and is now back on the resistance at 1350 points..
The gold is back below the Fibonacci retracement 23.60% (1,385 points) of its last bearish rally.
The price is currently testing the support at 1370 points.
I advise traders to trade only short positions as far as the price is below 1375 points.
If the price stay below 1360 points, this will strengthen our bearish sentiment.
A break of 1340 points will provide a new sell signal for an extension of the bearish rally towards 1320 ( ...
At the end of last week, the pair USD/CHF has validated the break of theresistance at 0.97, giving us a new buy signal. Currently, the price is making a pullback on this level as support. On the short term, the pair continues to evolve beyond its two upward slants (purple lines). The first (dotted line) gave support last Thursday. Last lows allow us to draw a new short-term uptrend channel (blue lines). The lower band is being tested.
We continue to advise long positions as far as 0.9596 is support. The breakout of 0.9775 will give a new buy signal. In August 2012, the break of this level had led to a powerful trend reversal of the pair. If this level is broken, the way will be open to 0.99.
In case of return below 0.9596 (this level corresponds to the second short term bullish slant - ...
Fundamental Analysis
EUR
"The report suggests that, having eased in the first quarter of the year, the euro zone’s economic downturn is likely to have gathered momentum again in the second quarter."
- Chris Williamson, Chief Economist at Markit
Retail sales in the Euro area fell in March in line with economists’ expectations, adding to signs that consumer demand is still weak, which is hampering recovery in the currency’s bloc economy.
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Technical Analysis
EUR/USD
"The market may have taken that as a little bit of a stronger chance that could cut rates even further, into negative territory."
- TD Securities (based on MarketWatch)
Upward impetus the currency pair has received from the 200-day SMA was insufficient to throw EUR/USD over the ...
Fundamental Analysis
EUR
"In view of the protracted recession, we must do whatever it takes to overcome the unemployment crisis in Europe."
- EU Economic and Monetary Affairs Commissioner Olli Rehn
The 17-nation economy is now expected to shrink more than previously estimated this year, as latest data is adding to concerns that the economy is far away from the recovery, the European Commission said Friday.
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Technical Analysis
EUR/USD
"The U.S. is a relatively strong story amidst anemic growth at best if not outright recession in Europe and elsewhere. So we still favor the U.S. dollar, particularly against G-10 currencies, for the first half."
- Standard Chartered (based on CNBC)
A support area, formed by a combination of the 20 and 200- ...