Category: Forex News

ADP a Snoozer; Greenback Still in Vogue

The prevailing theme in financial markets as of late is once again asserting itself this morning, with global economic weakness lending to the greenback’s outperformance as broad-based USD strength dominates the tape.  Managing to shrug off yesterday’s weaker than anticipated Chicago PMI and Consumer Confidence readings as potential outliers, the main event risk on the docket (along withtomorrow’s ECB policy meeting) is the release of US Non-Farm Payrolls on Friday, with traders looking to position accordingly ahead of the print.  The knowledge that Ebola has landed on American soil in Dallas, by way of Liberia, has had little effect on equity price action, though it will be up to the CDC to contain the spread of the disease in order to keep investors optimistic there won’t be an epidemic outbreak like in West Africa.

After briefly making a run at the 110 handle overnight, the Japanese Yen is regaining some of its losses and has pulled back from the psychological resistance level.  The Tankan readings that were released overnight saw a compression in optimism from large manufacturers and service firms, with the outlook for manufacturers increasing from 12 to 13, while non-manufacturers saw sentiment fall from 19 to 13.  A key piece of the report was that capital expenditure plans were revised higher for the Q3 survey, showing large firms expected to increase spending by 8.6% compared to the 7.4% forecasted last quarter.  On balance the reports were optimistic, and the initial push higher in USDJPY has been faded with the pair slinking back into the mid-109s.

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ADP Non-Farm Payrolls 213K – slightly above expectations

ADP Non-Farm Payrolls 213K – slightly above expectations

An OK jobs figure: the US private sector gained 213K jobs in September. August’s number was marginally revised to the downside: 202K from 204K. The US dollar is slightly stronger, in line with the with the outcome. Update: the US dollar is now retreating after the initial rise. Perhaps this gain isn’t convincing enough after last month’s poor NFP.

EUR/USD and AUD/USD could stage big corrections from lower levels – Elliott Wave Analysis

EUR/USD and AUD/USD could stage big corrections from lower levels – Elliott Wave Analysis

We see that the USD keeps moving higher across the board. AUDUSD reached new lows during the Asian session, while GBPUSD just fell to 1.6160 once again after worse than expected UK Sep Manufacturing PMI figures. Our attention in the days ahead will be on EURUSD where we expect a corrective rally in sessions ahead,

UK manufacturing PMI falls to 51.6 – lowest in 17 months – GBP/USD follows

UK manufacturing PMI falls to 51.6 – lowest in 17 months – GBP/USD follows

The weakest link in the UK economy has just become weaker: the manufacturing sector is growing at a slower pace than expected: 51.6 points according to the manufacturing PMI for September. In addition, last month’s number has been revised down to 52.2 from 52.5 points. GBP/USD is falling towards 1.6160, around 40 pips in the immediate

EUR/USD below 1.26 again as German manufacturing PMI falls to contraction zone

EUR/USD below 1.26 again as German manufacturing PMI falls to contraction zone

The revised PMI numbers don’t usually have a strong impact, but this time is different. When a key industry in the biggest country sees its forward looking index slip to contraction, the currency reacts. It’s a 15 month low and an ominous sign for the euro-zone as a whole. EUR/USD is falling under 1.26 once again. Can

EUR/USD, USD/JPY and GBP/USD – Pivot Points and Technical analysis

EUR/USD, USD/JPY and GBP/USD – Pivot Points and Technical analysis

EURUSD Daily Pivots R3 1.2828 R2 1.2765 R1 1.2697 Pivot 1.2633 S1 1.2566 S2 1.2502 S3 1.2434   EURUSD validated the descending triangle, breaking lower than the target objective of 1.26556, making an intra-day low of 1.257. Price seems to be forming a small topping pattern near today’s pivot level with the daily pivot and

AUD/USD forms a double bottom on the daily chart

AUD/USD forms a double bottom on the daily chart

Another recovery failed for the Aussie and it eventually reversed its move. AUD/USD fell from the highs of 0.8760 once again and this time it got very close to the cycle low of 0.8658 seen in February and touched a low of 0.8662. This is certainly a double bottom as the daily chart shows. From creating

US Consumer Confidence slides to 86 – USD follows

A series of disappointing US figures culminates with a big drop in consumer confidence: 86 points according to the Conference Board. This is a significant fall compared to last month’s 92.4 and to expectations. The dollar is retreating across the board, reversing some of the gains seen earlier: EUR/USD is around 1.2620, GBP/USD around 1.6220, USD/JPY

Eurozone Inflation Figures Smash Currency

Eurozone Inflation Figures Smash Currency

An overnight session that was filled with disappointing global growth indicators has reinvigorated the notion further stimulus measures from major central banks will be warranted in the future, which in turn has bolstered risk appetite, along with the greenback, as we get set for the opening bell in North America.  Also injecting calm into investors’

Canadian GDP flat in July – USD/CAD breaks above 1.12

Canadian GDP flat in July – USD/CAD breaks above 1.12

A big disappointment from Canada: the economy did not grow in the month of July, contrary to expectations. USD/CAD reaches higher and trades just below 1.12. Update: 1.12 is broken but the pair bounces back down. Canada was expected to report a monthly growth rate of 0.2% in July, the first month of the third