Category: Forex News

USD Outperforms After Labour Day – Busy Data Week Ahead

As North American traders’ return to their desks after the Labour Day long-weekend, positive investor sentiment has oozed into US equity futures following an overnight session in Asia that saw risk appetite well supported.  Although wage growth in Japan rose by a greater amount than had  been expected over the last twelve months, the main driver of Yen price action were rumors that Abe’s cabinet reshuffle is likely going to strengthen the position of those in favour of rebalancing the nation’s pension plan assets to a regime less focused on domestic bonds.  The possibility of increasing the GPIF’s exposure to domestic and international equities caused the Nikkei to 1.24%, while USDJPY briefly flirted with overtaking the 105 handle.

Looking towards the always fluid geopolitical developments in the Ukrainian-Russian conflict, there has been little in the way of de-escalation as Ukraine is becoming more concerned about the violence in the easternmost regions of its territory, warning the Russian advances are akin to something not seen by Europe since WWII.  While not affecting the appetite of investors for high-yielding assets just yet, the situation could become a bigger factor for equity price action as Obama lands in Estonian to reassure the Baltic nations that NATO stands by its military commitment.

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NZD/USD falls below 0.83

NZD/USD falls below 0.83

The kiwi was on the back foot for quite some time. And now, a new fall in milk prices (not for the first time) and a stronger than expected figure from the US send it to new lows. Below the 0.83 level, NZD/USD is the lowest since the beginning of the year. The ISM Manufacturing

ISM Manufacturing PMI jumps to 59 points – highest since 2011

ISM Manufacturing PMI jumps to 59 points – highest since 2011

Manufacturing is picking up in the US: the ISM Manufacturing PMI rises to 59 points – very strong growth. Highest since 2011. New orders are high: 66.7 after 63.4 points – the highest since 2004. The employment component remained almost unchanged at 58.1 points. USD/JPY tops 105, EUR/USD dips below 1.3120 and GBP/USD edges closer to 1.65. Update: after

USD is back from Labor Day – EUR/USD closer to 1.31, USD/JPY touches 105

USD is back from Labor Day – EUR/USD closer to 1.31, USD/JPY touches 105

The US dollar did not wait for American traders to wee the sunrise on the day after Labor Day and it resumes its rally. EUR/USD is nearing 1.31, USD/JPY touched 105 and other currencies are also bowing before the greenback. The tensions around Ukraine continue to dominate the headlines, with no signs of de-escalating. Russian

UK Construction PMI rises to 64 points – GBP/USD unexcited

UK Construction PMI rises to 64 points – GBP/USD unexcited

The British construction sector is still steaming ahead on all engines: the construction PMI rose to 64 points, significantly better than expected. GBP/USD is recovering but not really rallying. Update: cable is fading the better than expected read and is now sliding below 1.6570. Markit was expected to report a slide in the purchasing managers’ index

EUR/USD Sep. 2 – Escapes the lows as the US gets back in the game

EUR/USD Sep. 2 – Escapes the lows as the US gets back in the game

EUR/USD dipped just a bit lower and touched a new low of .13113 before returning a bit higher, but it is still marking a lower high. As US traders return to the scene, tensions are mounting both in Ukraine and regarding the ECB meeting on Thursday. In the former, NATO is gearing up in Eastern Europe and

AUD/USD remains on low ground after the Australian rate decision

AUD/USD remains on low ground after the Australian rate decision

The Reserve Bank of Australia left the interest rate unchanged at 2.50% for the 13th time, as widely expected. Stevens and co. repeated the stance that the “Australian dollar remains above most estimates of its fundamental value”, but this was basically nothing new. The Australian dollar was already hit by a USD rally beforehand, and these

Market Overview September 1-5

Market Overview September 1-5

USD: The U.S. Dollar opened mixed in Asian trading this morning, trading higher against the Euro, the Yen and the Swiss Franc but losing ground against Sterling, the Aussie, the Kiwi and the Loonie, with the U.S. Dollar Index trading up +0.038 or +0.05% to 82.7860.  Traders are looking ahead for rate decisions from four

GBPJPY: Strengthens, Eyes The 174.00 Level

GBPJPY: Strengthens, Eyes The 174.00 Level

GBPJPY – With GBPJPY extending its Friday strength, further bullishness is envisaged. On further gains, resistance lies at the 173.50 level followed by the 174.21 level where a break will aim at the 175.50 level. A cut through here will open the door for more downside towards the 176.00 level. Its daily RSI is bullish

This week in the markets: Conflict in Ukraine further affects strength of the euro

This week in the markets: Conflict in Ukraine further affects strength of the euro

The US dollar strengthened early last week, after US durable goods data jumped in July. Demand for these goods rose by 22.6% from the previous month and was the biggest rise on record. An increase in commercial aircraft demand was one of the biggest contributors, with GBP/USD falling to a low of 1.6538 as a