Traders
Highlights
FX return analysis
Gold hurtling towards 2013 lows
Fundamental focus: UK and Europe
BOJ to stand pat
Clarity needed from the Fed
FX return analysis
The USD was the star performer last week, gaining against all of its G10 counterparts. The dollar index broke above 84.10 - a key resistance level - to the highest level since mid-2010. Interestingly, the dollar pushed higher even though there were some soft economic data points from the US last week including weaker inflation and initial jobless claims. The key driver of the stronger buck appears to have been some hawkish comments from Fed speakers. San Francisco Fed speaker John Williams and Charles Plosser both said that QE could end by 2014. Although Williams and Plosser are not voting members of the Fed this year, their ...
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 ...
Crude oil futures eased a bit after gaining over 1% to $96.42 a barrel on the back of a stock market rally after a solid rise in U.S. consumer sentiment and leading indicators data.
Light sweet crude oil futures for June delivery was last at $95.25 per ounce, up from an open at $95.17, having earlier hit a high of $96.42, and a low of $94.78 per barrel. As of 11:50 New York Time
The Standard & Poor`s 500 Index was recently up 0.4% at 1657.45, rising after the Conference Board reported its index of leading economic indicators rose twice as much as expected in April.
Oil futures often rise and fall with the stock market, which is often tracked as a barometer of broader economic sentiment and oil demand.
In the U.S., the Thomson Reuters/University of Michigan preliminary index of ...
Recent rallies in Non-USD currencies resulting from poor US data have not lasted long. And those rallies resulting from strong US figures via the indirect effect of rallying equities (risk-on) have not lasted either. Broadening pro-USD sentiment may stay for longer than we had thought as the US dollar index has exited from another 9-year down cycle.
The greenback has primarily been boosted by traders' realization that the Federal Reserve is the central bank most likely to precede its global peers in reducing its asset purchases program, regardless of whether it ends up not maintaining or increasing the program altogether. What matters in currencies are relative expectations, and at the present juncture, the Fed is the most likely to signal a gradual tapering of asset purchases, than other ...
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; ...
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 ...
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
Title:
Euro Drifting Further South
Sunrise Market Commentary
- Rates: Core EMU bonds stabilize as eco data disappoint
Following a losing streak, US Treasuries eked out only modest gains on eco weakness, as equities kept climbing higher. German bonds ended little changed. Is this the start of longer consolidation period? More eco releases and Fed speakers may lead to an interesting session today.
- Currencies: Euro drifting further south
Yesterday the news flow brought negative news both for the euro and the dollar. The euro was hit the hardest as EMU Q1 GDP growth was reported well below the market consensus. The trade-weighted dollar tested the July 2012 top but the test was rejected. Sterling rebounded as the BoE turned slightly more positive on the UK economy.
The Sunrise Headlines
US equities eked out nice gains on ...
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.
Read more: FULL REPORT - Fundamental Analysis
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 ...