Recent Articles
Forex Analysis: USD/JPY Advances Bullish Trend but Due for Correction
May 15, 2013 – USD/JPY (daily chart) has continued its advance to approach a major upside resistance target around 103.00. This occurs after the pivotal breakout above 100.00 that occurred late last week, after which the pair has hardly paused in its almost relentless climb towards higher multi-year highs. While the bullish trend bias is
BOE sees stronger growth, lower inflation – GBP/USD recovers
The Bank of England raised its growth forecasts, but stressed that the recovery would be weak. Q2 growth is expected to stand at 0.5% and yearly growth will reach 2% in 2 years time. This is the last inflation report by outgoing governor Mervyn King. He accompanies the report with a press conference. GBP/USD was
AUDUSD Bearish; Wait On Pull-back For New Shorts (Elliott Wave Analysis)
AUDUSD extended its weakness in the last few sessions within wave (iii) which can be counted now in five smaller waves. As such, support for the current decline could be near, maybe around 0.9800 from where we will be tracking a wave (iv) corrective rally if we see evidences of a temporary low. If that
Euro-zone contracts 0.2% in Q1 2013 – Third quarter of recession
The euro-zone contracted by 0.2% in Q1 2013 according to the initial, Flash estimate. The early estimations saw the euro-zone contract by 0.1% in Q1 2013. However, the market’s real estimations were lowered after the disappointing data from Germany. This is the third consecutive contraction in the euro-zone, which is in a deep recession. The
AUD/USD Set to Fall to 0.60?
John Taylor, the CEO of FX Concepts stated in an interview that he took a short position on AUD/USD with very ambitious goals. Taylor sees the Aussie fall to 0.90 in a conservative scenario, and as low as AUD/USD 0.60 in a braver scenario. The bet is only against the Australian dollar and not against
UK jobless claims fall 7.3K, unemployment rate drops to 7.8% – GBP/USD Rises
The UK reported a drop of 7.3K jobless claims. It was expected to report a drop of 3.1K in the Claimant Count Change figure (jobless claims) for the month of April. March saw a drop of 9.9K claims (revised down from 7K reported last time). The unemployment rate for March was predicted to remain unchanged
Italy’s economy squeezes more than expected
The economy of the euro-zone’s third largest economy squeezed by 0.5%. Italy was expected to contract by 0.4% in the first quarter of 2013, making it the sixth consecutive month of economic decline. The previous quarter was the worst: a drop of 0.9% in output (before revisions). Year over year, it fell by 2.3%, slightly
Sterling risks
EUR: The GDP data for the Eurozone GDP is set to show a contraction after the German data came out weaker than expected this morning (rising just 0.1%). Eurozone initially seen falling -0.1%, but at least 0.2% decline now looking likely. Â A weaker number than this would further knock the euro. Update: the euro-zone contracted
BOJ Announces New Plans – USD/JPY Leaps to New Highs
The Bank of Japan will utilize 2.8 trillion yen in an immediate action to lower Japanese bond yields which have risen recently, despite the BOJ’s ambitious bond buying plans. Money has been moving from Japanese bonds to Japanese stocks and to various investments overseas. This news pushed USD/JPY above 102.40 – a level which temporarily
German Economy Hardly Grows – EUR/USD Falls
According to the Flash release, the German economy grew by only 0.1% in Q1 2013. The euro-zone’s locomotive was expected to return to growth of 0.3% after contracting sharply by 0.7% in Q4 2012 (revised down from 0.6%). Recent signs from Germany have been mixed. While officially Germany has avoided a recession (two consecutive quarters