Afternoon Forex Overview
Afternoon Forex Overview
The dollar extended its rally Friday morning as U.S. stocks fell into the red and mounting concerns about Greece’s debt problems hurt demand for riskier assets. The euro was hit further, dipping as far as USD1.3512, the lowest since March 2, as the Dow Jones Industrial Average changed direction and…
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US Market Update
US Market Update
The euro continues to be weighed down in the early New York morning on lingering concerns about whether Greece would secure financial assistance from the EU. The USD also benefited from risk aversion flows following the inter-meeting rate hike by India’s central bank (RBI). India was expected to possibly raise…
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USD/CAD Tests Support After Retracement Pattern
USD/CAD Tests Support After Retracement Pattern
1H: The 1H time-frame shows the dramatic decline in the near-term after the start of the US session. Note that the completed retracement rally was a zig zag with a 2-wave A structure and a 3-wave C structure. The wave count is not clear to me here , but the…
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Trade Idea: GBP/USD – Sell at 1.5190
Trade Idea: GBP/USD – Sell at 1.5190
Despite early rise to 1.5382, the subsequent euro-led sharp retreat suggests top has been formed there and consolidation with mild downside bias is seen for weakness to the lower Kumo (now at 1.5045) and then test of 1.4977 support. However, it is necessary to see a breach of latter [...]
Trade Idea: USD/CHF – Stand aside
Trade Idea: USD/CHF – Stand aside
Despite intra-day brief retreat to 1.0540, as dollar has rebounded again after finding renewed buying interest above yesterday’s low at 1.0534, suggesting further choppy consolidation above this week’s low at 1.0507 would take place and gain to the Ichimoku cloud bottom (now at 1.0664) cannot be ruled out, however, break…
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Currency Currents: Hodgepodge
Currency Currents: Hodgepodge
No wonder everyone is hiding in German bonds. This rush to a European safe haven has pushed yields on the 10-year German bunds lower; it has resulted in a significant widening of the spread in favor of US 10-year Treasury notes. In the charts on the next page we compare…
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Discount Rate Discussions Keeping Floor Under Bonds
Discount Rate Discussions Keeping Floor Under Bonds
Once again bond markets are having a hard time maintaining a rally after the Fed’s earlier stand on its policy of maintaining low interest rates. Dealers continue to mull the potential for a second nudge higher in the Fed’s discount rate, which is overhanging market sentiment. As much as [...]
Canadian Retail Sales in January Jumped Up in the Month Following a Gain in December
Canadian Retail Sales in January Jumped Up in the Month Following a Gain in December
Canadian retail sales in January rose a robust 0.7%, which was slightly stronger than the 0.6% rise expected going into the report. This small upward surprise occurred despite new car sales being much weaker than expected by dropping 2.3%. The offset [...]
Super-CAD Keeps up Head of Steam on Inflation Data
Super-CAD Keeps up Head of Steam on Inflation Data
The Euro continued to slide overnight and into the early US hours, as the major low for the cycle at 1.3435 is rapidly approaching. GBPUSD failed to hold the 1.5240 area support and dropped a figure as well in the overnight action. The resilient commodity currencies remain [...]
Canada’s Annual Core Inflation Rate in February Rises Unexpectedly
Canada’s Annual Core Inflation Rate in February Rises Unexpectedly
The February consumer price report rose a greater than expected 0.4% (UA) in the month. Expectations going into the report were for an increase of 0.3%. This did not prevent the year-over-year rate from dropping to just 1.6% from 1.9% in January. Expectations had been for a [...]
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