DailyFX - Forex Market News

Aussie and Euro Hit Fresh Lows but Rebound Ahead of Fed Minutes

Christopher Vecchio, Currency Analyst — Wed, 16 May 2012 16:37:00 GMT

Asian market participants dropped higher yielding currencies and risk-correlated assets to their lowest levels in at least four months as Greek concerns continue to weigh on sentiment. However, after the Aussie and the Euro hit fresh May lows against the US Dollar, their courses quickly reversed ahead today’s key release.

USD Index At Critical Juncture, JPY Correction Comes To An End

David Song, Currency Analyst — Wed, 16 May 2012 16:15:00 GMT

The greenback continued to appreciate on Wednesday, with the Dow Jones-FXCM U.S. Dollar Index rallying to a fresh 2012 high of 10,132, but the reserve currency may consolidate ahead of the FOMC meeting minutes as market participants weigh the outlook for monetary policy.

Guest Commentary: Gold & Silver Daily Outlook 05.16.2012

Lior Cohen, Energy Analyst for Trading NRG, — Wed, 16 May 2012 15:46:00 GMT

As stated in the weekly gold outlook there are many items on today's agenda: the minutes of April FOMC meeting, U.S housing starts report, ECB President speaks, Euro Area Annual Inflation and BOE Inflation Report .

Guest Commentary: MarketVisionTV - Hourly Elliott Wave Strategy USDJPY - Signs of Bullish Price Action

Don Haines, MarketVisionTV.com, — Wed, 16 May 2012 14:30:00 GMT

We still suspect the Dollar has ended the larger downside correction from the 84.15 peak.

Sterling To Consolidate Further On Dovish BoE, Euro Correction On Tap

David Song, Currency Analyst — Wed, 16 May 2012 13:35:00 GMT

The British Pound struggled to hold its ground on Wednesday as the Bank of England struck a dovish tone for monetary policy, and the GBPUSD may continue to consolidate over the remainder of the week as it fails to maintain the upward trend from earlier this year.

Commodities Sold on Greece Woes, May Extend Losses on Fed Minutes

Ilya Spivak, Currency Strategist — Wed, 16 May 2012 11:08:00 GMT

Commodity prices fell in Europe as Greece-linked risk aversion gripped markets. Minutes from the Fed’s April meeting may compound losses as QE3 bets fade.

Pound Eyes BOE Inflation Report, Dollar Looks to Fed to Drive Rally

Ilya Spivak, Currency Strategist — Wed, 16 May 2012 08:23:00 GMT

The safe-haven US Dollar and Japanese Yen may correct lower as a large batch of Eurozone and US economic data threatens to spark profit-taking.

Euro At Risk for Retracement to Yearly Lows But Beware of Oversold Studies

Joel Kruger, Technical Strategist — Wed, 16 May 2012 05:48:00 GMT

Markets remain under intense pressure into Wednesday, although, given how stretched technical studies are looking, we wouldn't be surprised to see a bit of short-term relief....

Guest Commentary: A Weaker Yen - Gently Does It

Jonathan Granby, — Wed, 16 May 2012 04:00:00 GMT

The strength of the Japanese yen loved by shoppers is hated by the Japanese administration, politicians and corporations. The head of Nissan recently said that yen strength is like a “1,000-pound gorilla” that scuppers our ability to sell cars abroad.

Dollar Wins its Highest Close Since January 2011, Buckle Up

John Kicklighter, Sr. Currency Strategist — Wed, 16 May 2012 03:12:00 GMT

Considering benchmark pairs like EURUSD and AUDUSD were already forging serious headway in their dollar-bullish trends, it was only a matter of time before the Dow Jones FXCM Dollar Index finally made the mark of real progress.

GBPUSD: Trading the Bank of England Inflation Report

David Song, Currency Analyst — Tue, 15 May 2012 20:50:00 GMT

The Bank of England’s quarter inflation report certainly highlights the biggest event risk for the British Pound, and the central bank’s updated forecast may spark a bullish reaction in the GBPUSD should the group see a greater risk for inflation.

US Dollar Targets Fresh Highs as Volatility Surges

David Rodriguez, Quantitative Strategist — Tue, 15 May 2012 16:00:00 GMT

The US Dollar (ticker: USDOLLAR) trades to fresh highs against the Euro and other forex counterparts, and high volatility expectations suggest the USD may continue to hit fresh highs (EURUSD lows).

Guest Commentary: MarketVisionTV - The Next 1000 Cable Points Will Be Even Nastier!

Ed Matts - MarketVisionTV.com, — Tue, 15 May 2012 15:50:00 GMT

Cable has already provided over 1000 points in the last 3 months repeating the price action from 2011.

USD Rally To Accelerate On Less Dovish Fed, GBP To Reverse Course

David Song, Currency Analyst — Tue, 15 May 2012 15:50:00 GMT

The greenback extended the advance from earlier this week, with the Dow Jones-FXCM U.S. Dollar Index rallying to a fresh monthly high of 10,077, and the reserve currency may track higher over the next 24-hours of trading should the Federal Reserve continue soften its dovish tone for monetary policy.

US Dollar Takes Back Overnight Losses as Greece Heads to New Elections

Christopher Vecchio, Currency Analyst — Tue, 15 May 2012 15:28:00 GMT

After selling off to start the week, higher yielding currencies, such as the Australian Dollar, rallied ahead of the US cash equity open as profit taking set in after better than expected European growth data. However, with Greece’s political woes lingering, the EURUSD dropped to its lowest level since January 18.

EUR Tumbles As Greece Fails To Form Government, GBP To Resume Rally

David Song, Currency Analyst — Tue, 15 May 2012 13:40:00 GMT

Market sentiment weakened further on Tuesday as Greece failed to form a coalition government, and the shift away from risk-taking behavior may gather pace during the North American trade as the ongoing turmoil in Europe drags on investor confidence.

Guest Commentary: Gold & Silver Daily Outlook 05.15.2012

Lior Cohen, Energy Analyst for Trading NRG, — Tue, 15 May 2012 13:27:00 GMT

Gold and silver declined again yesterday and thus both metals were traded down in eight out of the ten business days in May (so far). On today's agenda: Euro Area GDP for Q1 2012, German and Euro Area ZEW economic sentiment reports, U.S Core CPI and U.S. TIC Long Term Purchases.

Gold, Silver Rise as US Dollar Pulls Back After Eurozone GDP Data

Ilya Spivak, Currency Strategist — Tue, 15 May 2012 10:40:00 GMT

Gold and silver rose as the US Dollar retreated amid recovering risk appetite after a firm set of Eurozone GDP figures. Crude oil and copper have scope to catch up.

EURUSD: Trading the U.S. Consumer Price Report

David Song, Currency Analyst — Tue, 15 May 2012 06:00:00 GMT

Inflation in the world’s largest economy is expected to expand at the slowest pace since February 2011 and easing price pressures could drag on the U.S. dollar as it fuels speculation for additional monetary easing.

Dollar, Yen Vulnerable on Euro Zone and US Economic Data

Ilya Spivak, Currency Strategist — Tue, 15 May 2012 05:55:00 GMT

The safe-haven US Dollar and Japanese Yen may correct lower as a large batch of Eurozone and US economic data threatens to spark profit-taking.

Dollar Closes at a Two Month High, Critical Bull Trend Within Reach

John Kicklighter, Sr. Currency Strategist — Tue, 15 May 2012 03:04:00 GMT

Further progress towards deleveraging risky positions, rising volatility as the trend takes traction and a growing strain of the very framework of global financial markets is suiting the dollar well.

Sound Bites: Greek Political Drama Continues, EU Defends Current Agreements

Lujia Lin, — Mon, 14 May 2012 21:35:00 GMT

In spite of the lingering discord among Greek political leaders, European officials continue to insist on full implementation of the current bailout agreements and dismiss the possibility of the Hellenic Republic’s Euro exit. An overview of top statements about these and other key market issues.

Guest Commentary: MarketVisionTV - EURUSD Thumps Targets Hard...to Provide an Excellent Risk Return

Ed Matts - MarketVisionTV.com, — Mon, 14 May 2012 19:25:00 GMT

Euro Dollar has broken down to the month old target so aggressively should we change our trading strategy? No!

Bank Research Consensus Weekly 05.14.12

David Song, Currency Analyst — Mon, 14 May 2012 18:45:00 GMT

In the past week we have seen financial stress rising on the back of increased concerns about Greece. However, the FX market has been surprisingly calm. The JP Morgan G7 volatility index (based on option volatility) is still trading close to the lowest level since 2008. In particular, the lack of volatility in EUR/USD has surprised many market participants. EUR/USD has been remarkably stable in a 1.29-1.33 range and realised 1M volatility is trading at its lowest level since January 2008. The stable EUR/USD has puzzled a lot of our clients and one of the most common questions of the past month has been why the euro is not any weaker.
Arne Lohmann Rasmussen, Chief Analyst, Danske Bank

USD Rally At Risk Ahead Of FOMC Minutes, AUD At Risk Amid RBA Minutes

David Song, Currency Analyst — Mon, 14 May 2012 16:10:00 GMT

The greenback continued to appreciate on Monday, with the Dow Jones-FXCM U.S. Dollar Index advancing to a fresh monthly high of 10,050, and the reserve currency may track higher over the next 24-hours of trading as the ongoing turmoil in Europe saps risk-taking behavior.