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Thursday, March 31, 2011
Put Your Skills to the Test – Compete in Forex Trading!
FOREXYARD: Forex News Blog
FOREXYARD: Forex News Blog | |
| Equities Move Higher as Yen Continues to Weaken Posted: 30 Mar 2011 05:17 AM PDT
In European trading today traders were moving into higher yielding assets such as equities and the euro while shunning the yen, the traditional safe-haven currency. ADP payrolls data will be released shortly and should dictate the trend for the remainder of the day. The yen continues to weaken in trade versus the dollar and the euro as rate differentials are driving the yen lower. Rising European interest rates have been widely priced in and have fueled gains in the euro. But recent comments by Fed officials have opened the door for the possibility of a normalization of US monetary policy after more than two years of high liquidity. In response traders have been bidding the dollar higher this morning Equities were stronger with the FTSE trading higher by 0.52% while the DAX was up over 1.60%. At lunchtime during the European trading session the USD/JPY was up at 83.07 from 82.97. The EUR/JPY was at 117.11 from an opening day price of 116.92. Morning data releases were positive as the KOF Economic Barometer showed positive sentiment in Switzerland which may be increasing expectations for a rate hike by the SNB Traders sent the Swiss franc higher versus the dollar as the USD/CHF traded lower at 0.9213. British CBI Sales were significantly stronger than expected at 15 on forecasts of a decline of -1. This helped support the pound and the GBP/USD rose from a two month low to trade at 1.6025 from 1.5994. Equities were stronger with the FTSE trading higher by 0.52% while the DAX was up over 1.60%. ADP non-farm payrolls are expected at the opening of New York trading. A report that shows better than expected private payrolls may favor the short term trend of dollar strength and yen weakness. Resistance for the USD/JPY is found at 80.30 followed by 84.00 on an extension. |
| Posted: 30 Mar 2011 03:02 AM PDT
The EUR/JPY is supported by improving fundamentals and positive technicals. Looking first at the euro, recent euro strength can be explained via expectations of rising interest rates. ECB President Jean-Claude Trichet has made no secret of this and on Monday reiterated his commitment to increasing European interest rates. Rising inflation in the euro zone is consistently above the ECB target of 2% and Trichet appears determined not to let inflationary pressures get out of control. Expectations of the ECB raising the interest rate off of its 1.00% low have traders moving into the euro in search of higher yields. The 17-nation currency is not without its faults. In the last meeting of Europe's finance ministers, the group was unable to come to a decisive agreement to support the indebted peripheral nations with the new European Stability Mechanism. Yesterday S&P downgrading Greek sovereign debt as the rating agency expects a higher risk of a debt restructuring. However, the euro was little changed following the news. This sends a signal to traders; as the currency fails to react to negative news; underlying fundamentals have changed and the market is now focused on interest rate differentials Turning to the yen, the Japanese currency is now trading at its weakest point since the G7 intervened in the FX markets. It appears traders have been positioned out of long yen positions by the unilateral intervention. Also improved risk sentiment is helping as traders unwind risk-off trades from the previous two weeks which supports a weaker yen. Looking to the charts, the EUR/JPY appears to be reversing the long term trend. In mid-February the pair broke above the trend line off of the October 2009 high. The daily chart shows the long term moving averages have turned higher. Yesterday the pair broke out about above the previous resistance level on the weekly chart at 116.00. There is a lack of resistance levels on the chart until 119.60. Moving higher, the next resistance is found at 128.00 and 134.40. To the downside, support is found at 112.00 and the pre-intervention low at 106.80.
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Wednesday, March 30, 2011
FOREXYARD: Forex News Blog
FOREXYARD: Forex News Blog | |
- Access Your Trading Platform from Anywhere in the World
- EUR/SEK Likely to See Downtrend
- Euro Sees Bullish Week against SEK and NOK
- Dollar Releases Last Week’s Gains
| Access Your Trading Platform from Anywhere in the World Posted: 29 Mar 2011 05:51 AM PDT
Access Your Forexyard Trading Platform from Virtually Anywhere in the World Via the Webtrader Login. Forexyard offers its traders the ability to access the trading platform from virtually anywhere in the world. This solution is particularly useful for those traders who cannot download to their computer the Windows based FX-Trader platform. Via the Forexyard WebTrader, a trader can execute trades and manage their accounts in real-time with streaming prices, integrated charting tools and analytics. To access the Forexyard WebTrader, a trader needs only their username, password, and to select their appropriate account via one the suitable link below. For New traders on the Forexyard WebTrader – you can access through the following links: For Older clients please find your access links below: Traders can then save the login link to their favorites for easy access to the Forexyard WebTrader, allowing for quick access to their trading platform. Please note that the login for the MT4 account differs. To download the MT4 platform, click here. |
| EUR/SEK Likely to See Downtrend Posted: 29 Mar 2011 05:08 AM PDT
Following the recent bullish session the euro saw against the Swedish krona, it now appears that the pair has reached its peak and may turn downward. Technical indicators are showing that a prolonged bearish correction is likely to occur, giving forex traders a great opportunity to open up sell positions at a great entry price. We will be looking at the daily chart for EUR/SEK, provided by Forexyard. The technical indicators being examined are the Relative Strength Index, Stochastic Slow and Williams Percent Range. 1. The Relative Strength Index has already breached overbought territory and has turned downward. Traders can take this as a sign that there is a good chance that the pair is likely to move south. 2. The Stochastic Slow has formed a bearish cross right on the upper resistance line. This is a clear indication that the pair could see a downward correction in the very near future. 3. Finally, the Williams Percent Range has also broken into overbought territory and is pointing down. This lends further evidence to our initial claim that the pair is likely to turn bearish soon.
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| Euro Sees Bullish Week against SEK and NOK Posted: 29 Mar 2011 04:54 AM PDT
The last week saw the euro make fairly significant gains against the SEK, while it slowed down its recent bullish trend against the NOK. This was largely due to the likelihood that the euro-zone will raise interest rates next month. The prospect of a euro-zone interest rate hike seems to be overshadowing the recent renewal in sovereign debt worries that has plagued the region as of late and has caused investors to flock back to the 17-nation single currency. Over the last week, the EUR/SEK pair has shot up close to 1200 pips, and is currently trading around the 8.9735 level. The heavy bullish behavior the EUR/NOK saw at the beginning of the month seems to have tapered off, and the pair was only able to gain about 200 pips over the last seven days. Currently the pair is trading at 7.8930. Against the US dollar the Scandinavian currencies have been fairly steady since last week. Analysts attribute the inactivity to a lack of significant US economic news as of late. This is all likely to change starting tomorrow when the US ADP Non-Farm Employment Change figure is released. The figure is one of the more significant US indicators, and is considered an accurate predictor of Friday’s all important Non-Farms payrolls figure. At the moment, analysts are predicting a slight decline in the number of jobs added in the US since last month. If true, the Scandinavian currencies could capitalize on the news and see some short term gains against the dollar in the next few days. Against the euro, traders will want to pay attention to news regarding any future increase in interest rates. Confirmation of a rate hike is likely to lead to bearish week for the kroner. |
| Dollar Releases Last Week’s Gains Posted: 29 Mar 2011 01:20 AM PDT
The dollar was off of its last week highs versus the majors as positive US economic data feeds into USD selling. The euro, pound, and Canadian dollar were all stronger versus the greenback as traders await economic data from both Britain and the US. Today's Economic Data Releases: GBP – Current Account – 8:30 GMT The pound has come off of last week's high, after which sterling shed 5 cents on the US dollar. The declines in sterling may be overdone but momentum has yet to pick up. A better than expected current account release would help the pound recover. Initial resistance for the GBP/USD is located at 1.6050, followed by 1.6200. To the downside where momentum is pointing, yesterday's low of 1.5930 should be supportive as the 100-day moving average comes in near this level. A breach of this level may target 1.5870 which is the 50% retracement from the December to March move. USD – Conference Board Consumer Conference – 14:00 GMT Yesterday's stronger than expected US personal income and personal spending data is a positive sign for the US economy and fed into USD selling. A better than expected CB survey should extend yesterday's trends and be a negative for the greenback. The USD/CAD has steadily declined and continued USD weakness could continue to push the pair lower. First support is found at 0.9730 with a target the swing low at 0.9666. Resistance is located at the 50-day moving average that comes in at 0.9830. |
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