Euro is gaining ground today, heading higher as an ECB rate cut seems further off after German economic data. Also helping the euro is general risk appetite following Chinese data. The latest news out of Germany has many hoping that the eurozone’s biggest economy can pull the entire region out of its current funk. Better than expected industrial output is driving this hope. … “Interest Rate Cut Further Off; Euro Gains Ground”
Month: May 2013
US Dollar Lower Across the Board on Risk Appetite
Risk appetite, prompted by China’s trade surplus, is helping high beta currencies against the US dollar today. Greenback is down almost across the board as the situation for the global economy is expected to improve, and as risk assets fare in demand. The latest news out of China found that exports are up 14.7 per cent from the period of a year earlier. The news is prompting risk appetite as many consider that … “US Dollar Lower Across the Board on Risk Appetite”
GBPUSD: Intra-day Waves Are Turning Bullish For a Possible
GBPUSD is still trapped in the 1.5450-1.5600 range where we can see only three waves down from last week’s high. Also notice that current intra-day rise extended above the 1.5520 level. This means that any previous bearish impulsive interpretation is now invalid. Therefore, we think that the bullish price action is back in force with … “GBPUSD: Intra-day Waves Are Turning Bullish For a Possible”
Yuan Gains on Positive Trade Balance
The Chinese yuan strengthened today as China’s trade balance improved, beating analysts’ forecasts, and the central bank increased its daily fixing to the record high. The Peopleâs Bank of China set its reference rate 0.17 percent higher to the record of 6.1980 per dollar. The Customs General Administration of China reported that the trade surplus was at $18.2 billion in April, above the forecast of $15.5 billion. Exports surged 14.7 percent last month … “Yuan Gains on Positive Trade Balance”
NZ Dollar Drops as RBNZ Intervenes
The New Zealand dollar dropped today as the Reserve Bank of New Zealand intervened, selling the currency, and signaled that it may do so again to halt the rally of the kiwi. Central bank’s Governor Graeme Wheeler said that the bank sold New Zealand dollars and is ready to intervene again. Wheeler thought that interventions are not likely to weaken the currency materially, but can “take potentially the tops off rallies”. … “NZ Dollar Drops as RBNZ Intervenes”
USD Index Is Forming A Bullish Reversal Pattern-Elliott Wave
USD-index reversed nicely higher last week from the 81.32 level, which appears to be a first impulsive structure that is part of a larger and new bullish cycle for the USD. As such, we expect much higher levels on USD-index in days and weeks ahead especially if we consider that decline from 83.50 was made … “USD Index Is Forming A Bullish Reversal Pattern-Elliott Wave”
USD/JPY: Trading the US jobless claims May 2013
US Unemployment Claims, a key indicator, is released weekly. It measures the number of people who filed for unemployment for the first time during the previous week. A reading which is higher than the market forecast is bullish for the Japanese yen. Here are all the details, and 5 possible outcomes for USD/JPY. Published on … “USD/JPY: Trading the US jobless claims May 2013”
Franc Remains in Downtrend as Fundamentals Do Not Change
The Swiss franc weakened today as the economic situation in Switzerland remained the same, giving the Swiss National Bank few reasons to drop the cap on the exchange rate. Switzerland’s consumer sentiment remained little-changed at -5 in April. Investors have hoped for an improvement to -3. The unemployment rate stayed at 3.1 percent. It is likely that the SNB will keep the ceiling until fundamentals improve significantly. USD/CHF rose from 0.9401 to 0.9409 and EUR/CHF went … “Franc Remains in Downtrend as Fundamentals Do Not Change”
CAD Climbs as Traders Search Higher Yield After RBA Decision
The Canadian dollar advanced today amid increasing demand for the currency from traders interested in high yield as continuous currency wars make it difficult to find. Carry trade is a practice of borrowing money in countries with low interest rates and investing them in economies where borrowing costs are higher. Such strategy was considered rather profitable, but is hard to perform in the current environment of aggressive monetary easing across … “CAD Climbs as Traders Search Higher Yield After RBA Decision”
German Factory Orders UP, US Down
Earlier today at 6 AM EST German Factory Order numbers were released that showed a plus 2.2 percent gain month over month. Yet last Friday, May 5th US Factory orders were released that showed a negative 4 percent growth rate month over month. Now it’s no secret that Germans in general are amongst the most … “German Factory Orders UP, US Down”