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"USD/CHF: technical comments"(2012-04-25)

 

 

 

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USD/CHF: technical comments

Wednesday, April 25, 2012 - 10:30

 

 

 

 

The greenback keeps trading within short-term downtrend versus its Swiss counterpart.

 

Ichimoku H4 chart hints at bearish outlook (Kijun-sen and Tenkan-sen are declining with the former lying above the latter). As a result, USD/CHF may decline to 0.9050, the lower line of the triangle formation. There may be some support for the pair in the 0.9080/70 zone (trend line supports, maximums of late March, early April).

 

 

 

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Chart. H4 USD/CHF

 

 

If the pair breaks below psychological level of 0.9000, the decline from 0.9594 (January 9 maximum) will likely resume and US dollar may slide to 0.8628 (38.2% retracement of the advance made in the second half of 2011). If USD/CHF overcomes 0.9251 (April 16 maximum), the decline from 0.9594 may be considered over and the pair will get chance to return to this level.

 

 

daily_usdchf_14-36_(1).gif

Chart. Daily USD/CHF

 

 

 

Comment here http://www.fbs.com/analytics/2012-04-25/17460-usdchf-technical-comments

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"USD/JPY: any trade ahead of the BOJ? "(2012-04-26)

 

 

 

 

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USD/JPY: any trade ahead of the BOJ?

Thursday, April 26, 2012 - 07:00

 

 

 

The greenback’s trading on the downside versus Japanese yen today as lower USD/CNY made traders selling US dollar versus all of its Asian peers.

 

In addition, USD/JPY also got under pressure due to the corporate flows ahead of the period of Japanese national holidays known as the Golden Week (Japanese Golden Week in 2012 is based on two separate holidays of 3 and 4 days. The first is from Saturday, April 28 through to Monday, April 30 and then Thursday, May 3 through to Sunday, May 6).

 

At the same time, the moves of the pair seem to be limited as the market awaits tomorrow’s decision of the Bank of Japan. Investors expect more easing from the BOJ. If the central bank does more QE, that should be negative for the yen. If it doesn’t – well, it better be ready to the renewed strength of its national currency, it’s as simple as that.

 

From the technical point of view, note yesterday’s doji candle on the daily chart. If US currency breaks above the short-term trend resistance line, one may go long. If it doesn’t, then USD/JPY may slide to the lower border of the channel in 80 yen area, though the potential decline will be limited by the hopes about the BOJ.

 

 

 

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Chart. Daily USD/JPY

 

 

Comment here http://www.fbs.com/analytics/2012-04-26/17465-usdjpy-any-trade-ahead-boj

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"NZD up on RBNZ’s comments "(2012-04-26)

 

 

 

 

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NZD up on RBNZ’s comments

Thursday, April 26, 2012 - 07:30

 

 

The New Zealand dollar strengthened today against its major peers after a not as dovish as expected RBNZ's policy statement.

 

The Reserve Bank of New Zealand today left the Official Cash Rate (OCR) unchanged at 2.5% calling this level of the borrowing costs appropriate for the moment. The RBNZ Governor Alan Bollard claimed that “domestic economy is showing signs of recovery” noting though that “the global outlook remains of concern.” Bollard said that if kiwi remains strong with all things equal, “the Bank would need to reassess the outlook for monetary policy settings”.

 

RBC: Markets were clearly unimpressed by the threat.

 

ANZ: We expect the RBNZ to take every opportunity to "talk down" the NZD. However, we think the main drivers of recent NZD price action are global rather than local.

 

Analysts expect the kiwi to climb to $0.8200 after today’s growth to $0.8172. The cross has been trading sideways in a range $0.8060-$0.8280 since early March. The resistance for NZD/USD lies at $0.8188 (high Apr.25), $0.8198 (high Apr.23) and $0.8230 (55-day MA), while the support – at $0.8099 (100-day MA), $0.8078 (200-day MA), $0.8058 (low Mar.22) and $0.8040 (low Jan.23).

 

 

 

 

 

daily_nzdusd_26.04_11-36.gif

 

Chart. Daily NZD/USD

 

 

Comment here http://www.fbs.com/analytics/2012-04-26/17467-nzd-rnbzs-comments

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"Citigroup: euro's correlated with.. "(2012-04-26)

 

 

 

 

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Citigroup: euro's correlated with..

Thursday, April 26, 2012 - 08:45

 

 

According to analysts at Citigroup, there is a rough correlation between the euro and the foreign buying of euro zone’s debt. In the periods of euro’s strength, foreign investors are buying euro zone bonds, and when the euro weakens as it did late in 2011, foreign investors sell.

 

Analysts believe the support of investors due to euro’s advance in early 2012 has probably softened the common currency’s drop these days, but the effect won’t last long.

 

 

 

 

 

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Chart: Reuters

 

 

Comment here http://www.fbs.com/analytics/2012-04-26/17469-citigroup-euros-correlated

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"TD Securities: bearish on AUD/CAD"(2012-04-26)

 

 

 

 

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TD Securities: bearish on AUD/CAD

Thursday, April 26, 2012 - 10:30

 

 

Analysts at TD Securities claim that the downtrend within which Australian dollar is currently trading versus its US counterpart remains strong. In their view, AUD/CAD will drift down to the parity and then to 0.9900.

 

Support for the pair lies at 1.0155 (2012 minimum) and 1.0100 (long-term trend support). The specialists see the possibility of small corrections within the bearish trend, but the pair will be declining: “We rather think strongly trending oscillator signals will keep counter-trend rallies to a minimum and retain focus on the downside. Stay bearish while the 1.03 resistance remains intact.”

 

 

 

 

 

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Chart. Daily AUD/CAD

 

 

Comment here http://www.fbs.com/analytics/2012-04-26/17474-td-securities-bearish-audcad

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"Analysts: outlook for GBP/USD"(2012-04-26)

 

 

 

 

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Analysts: outlook for GBP/USD

Thursday, April 26, 2012 - 11:00

 

 

The preliminary GDP in Q1 unexpectedly shrank 0.2% vs. a 0.1% gain expected and a 0.3% contraction in Q4, meaning the Great-Britain has slid into a double-dip recession, according to yesterday’s release. Analysts split over the prospects of the sterling, despite the negative data.

 

UBS's analysts see the pair at $1.6200 in the following three months. They expect the yesterday’s GDP report to be revised soon, while the Britain’s PMI data look rather optimistic. In their view, the MPC is ready to tighten its monetary policy, so the pound has reasons for growth.

 

Technical analysts at Danske Bank recommend going long onthe sterling at the current levels, for a $1.6335 objective and with a stop at $1.6075. However, Commerzbank strategists advise to go short on the pound at $1.6130, with a stop over $1.6185 and targeting at $1.5900.

 

 

 

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Chart. Daily GBP/USD

 

 

Comment here http://www.fbs.com/analytics/2012-04-26/17475-analysts-outlook-gbpusd

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UBS: currency forecasts updated (2012-04-26)

 

 

 

 

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UBS: currency forecasts updated

Thursday, April 26, 2012 - 12:45

 

 

EUR/USD 1-month $1.30, 3-month $1.25;

 

GBP/USD 1-month $1.62, 3-month $1.62;

 

EUR/GBP 1-month 0.80, 3-month 0.77;

 

NZD/USD 1-month $0.82, 3-month $0.78.

 

 

Comment here http://www.fbs.com/analytics/2012-04-26/17480-ubs-currency-forecasts-updated

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"US jobless claims: what’s behind the figures?"(2012-04-26)

 

 

 

 

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US jobless claims: what’s behind the figures?

Thursday, April 26, 2012 - 11:00

 

 

US Labor Department announced today that initial jobless claims fell by 1K last week to a seasonally adjusted 388K in the week ended April 21. The reading was though higher than the forecast.

 

It’s necessary to note one thing: the previous print (for the week ended April 14) was revised from 386K to 389K (the highest level since the first week of January). So the comments are positive, the newsmakers got what they wanted – the improvement. At the same time, this is the 10th week in a row of misses to the weaker side and the 16th of the last 18. The average of new claims over the past month rose by 6,250 to 381K.

 

Some justified April increase in claims by the spring break when school workers can file for temporary benefits. However, fewer experts are so sure now. Recent data wasn’t encouraging enough and there are significant risks from Europe. There’s also talk that the government’s seasonally adjustments may have exaggerated the drop in claims at the beginning of the year.

 

The picture will become clearer next Friday with the release of April employment report.

 

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An Army veteran chats with representatives from Southwest Airlines at the Hiring our Heroes job fair for U.S. military vets and their spouses last month. (E. Jason Wambsgans/Chicago Tribune) (E. Jason Wambsgans )

 

 

Comment here http://www.fbs.com/analytics/2012-04-26/17484-us-jobless-claims-whats-behind-figures

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"New Zealand: mixed data released"(2012-04-30)

 

 

 

 

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"New Zealand: mixed data released"

Monday, April 30, 2012 - 07:15

 

Statistics New Zealand reported on Monday that the trade surplus declined in March to NZ$134 million against NZ$202 million in February and NZ$445 million surplus expected. The decline is caused by an 8.7% fall in the value of exports; meanwhile, imports rose 1.2%

 

Building consents improved 19.8% in March after a 6.2% fall in February. NBNZ Business Confidence index increased to 35.8 in April against 33.8 in March, indicating strengthening business optimism.

 

The Reserve Bank of New Zealand (RBNZ) has consistently warned that the high national currency hurts the tradable sector and puts a downward pressure on economic activity. Bank officials remarked last week that if the NZD remains high the economy may to look towards a monetary policy easing.

 

Nomura: The RBNZ has stepped up its rhetoric on the level of the NZD. We think this is just another attempt to talk the currency lower. We doubt any FX intervention will take place. We continue to look for opportunities to enter NZD long positions.

 

The NZD/USD continues a sideways movement in a $0.8060-0.8280 channel since March 2012.

 

daily_nzdusd_30.04_11-11.gif

 

Chart. Daily NZD/USD

 

 

Comment here http://www.fbs.com/analytics/2012-04-30/17492-new-zealand-mixed-data-released

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"USD/JPY down on recent data"(2012-04-30)

 

 

 

 

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USD/JPY down on recent data

Monday, April 30, 2012 - 07:15

 

The greenback touched a two-month low versus the yen today due to the disappointing U.S. GDP report, released on Friday. The estimated GDP growth in Q1 was 2.2% vs. 3.0% in the previous quarter.

 

Economists expect the interest rates to remain zero-bound at least through late 2014. The U.S. slowdown also revived speculation that the Fed may launch another QE or a bond-buying program.

 

Societe Generale: A flavor of QE is back in the air, driving the USD lower and risky assets higher.

 

On Tuesday watch out for the April ISM Manufacturing PMI index; in March the index was strong enough (53.4). The Non-Farm Payrolls (release on Friday) are forecasted to grow by 176K in April.

 

BNP Paribas: If we do get a weak ISM and a 125K increase in payrolls, the dollar weakness is going to continue.

 

 

 

daily_usdjpy_30.04_13-07.gif

 

Chart. Daily USD/JPY

 

 

Comment here http://www.fbs.com/analytics/2012-04-30/17493-usdjpy-down-recent-data

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Commerzbank: trading USD/JPY(2012-04-30)

 

 

 

 

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Commerzbank: trading USD/JPY

Monday, April 30, 2012 - 09:15

 

Early Monday the USD/JPY dropped to 80.10 yen (50% retracement of the early 2012 growth and the bottom of the daily Ichimoku cloud).

 

According to analysts at Commerzbank, the breach of a 79.15 support (61.8% retracement) may let the dollar fall towards 78.34 yen (200-day MA). Resistance lies at 81.33, 82.28 (23.6% retracement), 82.51 (top of the cloud), 84.17 (high March 15).

 

Strategists recommend holding longs at 80.63., with a stop at 79.90 and covering 85.50. In a shorter term a correction to 79.15 is expected, but the long term targets lie at 83.80 and 85.50.

 

 

 

daily_usdjpy_30.04_13-05.gif

 

Chart. Daily USD/JPY

 

 

Comment here http://www.fbs.com/analytics/2012-04-30/17493-usdjpy-down-recent-data

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Analysts: trading GBP/USD(2012-04-30)

 

 

 

 

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Analysts: trading GBP/USD

Monday, April 30, 2012 - 09:15

 

GBP/USD reached $1.6300 (the highest since Aug. 31) on Monday after strengthening for an 11 consequent days. However, the pair is overbought and has entered a declining phase, breaching below the opening price at $1.6274.

 

Most analysts are bullish on the cable’s prospects these days. For example, strategists at Danske Bank advice to buy the pair for a revised $1.6380 objective and with a stop at $1.6160. Commerzbank suggests to buy with a stop $1.6165 and a $1.6425 target. UBS strategists believe the cable will remain at $1.6200 for the next 1 to 3 months.

 

Recent report showed U.K. house prices increased in April for a second month. Today will be released the core personal consumption expenditure price index and personal income figures in the U.S. The U.K. Manufacturing PMI will be announced tomorrow morning and forecasts point out to a slight decrease from 52.1 to 51.4.

 

 

 

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Chart. Daily GBP/USD

 

 

Comment here http://www.fbs.com/analytics/2012-04-30/17496-analysts-trading-gbpusd

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Analysts: trading GBP/USD(2012-05-01)

 

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Aussie falls on RBA rate cuts

Tuesday, May 1, 2012 - 08:00

 

The Australian dollar fell against its major counterparts after Reserve Bank of Australia unexpectedly cut its main cash rate by 50 bps to 3.75%. Market expected the bank to be less dovish and to lower rates by 25 bps to 4.0%.

 

According to bank officials, for the next two years the inflation will be lower than forecasted earlier but still within RBA's target range of 2-3%. The housing market remains subdued (Q1 House Price Index fell -1.1% vs. 0.4% decline forecasted).

 

AMP Capital Investors: A 25 bps cut would be meaningless, whereas a 50 bps move will lead to decent reduction in borrowing costs. It probably needs a couple more cuts going forward; we will probably see cash rates down to 3.25% by the year end.

 

RBC Caital Markets: It leaves the door open for further easing. Growth was obviously lower than they expected and their inflation forecast will be marked lower on Friday.

 

In a year-over-year comparison Australian RBA Commodity Index decreased 4.2% in April, following a 2.7% rise in March. Manufacturing PMI in China, Australia’s important trade partner, has disappointed investors after falling to 53.3 vs. 53.6 expected.

 

AUD/USD fell to $1.0312 on today’s negative data. However, some analysts still believe the AUD dip presents a buying opportunity. Support for the cross lies at 1.0300 (strong psychological support) and 1.0246 (low April 24) levels, while resistance - at 1.0346 (21-day MA), 1.0357 (200-day MA) and 1.0445 (100-day MA).

 

 

 

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Chart. Daily AUD/USD

 

 

Comment here http://www.fbs.com/analytics/2012-05-01/17500-aussie-falls-rba-rate-cuts

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Cable drops on PMI data(2012-05-01)

 

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Cable drops on PMI data

Tuesday, May 1, 2012 - 09:00

 

According to the data released today, U.K. Manufacturing PMI declined in April to 50.5 compared with the consensus forecast 51.4.

 

Everyone who follows the issue remembers how March data positively surprised the markets with 51.9 reading (the index is above 50, so the industry expands). Economists explain the slowdown with a sharp decline in export demand. The easing of new orders from the US and Asia is worrying as a potential risk to continued growth, as these have helped to balance out weaker demand in recent months.

 

USD/GBP has slipped to the 1.6200 level after demonstrating an impressive growth as of late. The next support for the cable lies at 1.6153 (low Apr.27) and 1.6082 (low Apr.25). On the upside, a break above 1.6298 (Upper Bollinger) would bring 1.6304 (high Apr.30) and then 1.6335 (high Aug.31).

 

 

 

daily_gbpusd_30.04_13-10.gif

 

Chart. Daily GBP/USD

 

 

Comment here http://www.fbs.com/analytics/2012-05-01/17506-cable-drops-pmi-data

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U.S.: events to watch(2012-05-01)

 

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U.S.: events to watch

Tuesday, May 1, 2012 - 10:45

 

The greenback weakens against its major peers before the U.S. ISM Manufacturing PMI release. According to Bloomberg survey, manufacturing in the U.S. probably expanded at a slower pace in April than a month earlier (consensus-forecast 53.0 vs. 53.4 in March).

 

A further economic expansion of the U.S. economy may require faster growth both in manufacturing and service industries. However, unfavorable conditions in the global economy sap demand on U.S. production.

 

UniCredit Group: Manufacturing is slowing down a little bit, but it did have a pretty good first quarter, partly because of the car industry. The U.S. economy really needs to see a stronger goods-producing sector this year.

 

The Fed’s dovish hints after the U.S. Q1 GDP below expectations raise speculations on the further policy easing. Later today three FOMC members will deliver speeches; construction spending in March may rise for the first time in three months (0.5% gain forecasted after a 1.1% drop in February). On Friday non-farm payroll figures will be next to offer investors the clues on the prospects of the U.S. economy.

 

 

 

 

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Source: fotopedia.com

 

 

Comment here http://www.fbs.com/analytics/2012-05-01/17512-us-events-watch

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Comments on EUR/USD(2012-05-01)

 

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Comments on EUR/USD

Tuesday, May 1, 2012 - 13:15

 

EUR/USD is going up ahead of U.S. data releases. Market is expected to follow these indicators after yesterday’s weaker than expected data placed the U.S. economy’s recovery in doubt. Any sign of weakening is likely to increase talk of further monetary easing by the Federal Reserve.

 

However, many analysts don’t expect the interest cuts hike in the nearest future.

 

Merrill Lynch Wealth Management: With the economy still growing above 2%, calls for further quantitative easing (QE) will likely fall on deaf ears, at least for now.

 

The prospects of the cross still remain unclear; however, in a longer period most analysts expect EUR/USD to decline. Europe’s problems seem to be endless – perhaps, Spain is not the last country to face the fiscal problems.

 

EUR/USD is trading in the $1.3270 area (the highest since April 3), despite the woes connected with the euro zone. If the cross manages to close above the $1.3270 level, a rally toward the $1.3368 may be unfolding. A close back below that trend line would strengthen resistance and suggest more range-trade ahead.

 

Resistance for the pair lies at 1.3281 (Upper Bollinger), $1.3283 (high Feb.29), $1.3368 (high Apr.3) and 1.3385 (high Mar.27), while support – at $1.3159 (21-day MA), $1.3157 (low Apr.27) and $1.3115 (100-day MA).

 

 

 

 

daily_eurusd_30.04_17-56.gif

 

Chart. Daily EUR/USD

 

 

Comment here http://www.fbs.com/analytics/2012-05-01/17515-comments-eurusd

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Analysts: outlook for USD/CAD(2012-05-01)

 

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Analysts: outlook for USD/CAD

Tuesday, May 1, 2012 - 13:15

 

According to the Royal Bank of Canada, the greenback may reach an eight-month low versus a Canadian dollar (C$0.9788) after dropping to a fresh low for this year. The pair has already slid below the C$0.9842 level (previous 2012 low).

 

RBC Capital Markets: The decline has resolved a multi-month trading range to the downside, exposing the August 31, 2011 low. This development confirms that bearish sentiment still remains prevalent for the dollar versus the loonie.

 

However, this week the USD/CAD bounced back to C$0.9890 area after the unexpected contraction of nation’s GDP.

 

TD Securities: Yesterday’s disappointing GDP figures might pause any intention by the BoC of rising the overnight rates. The market is consolidating ahead of another push higher towards C$0.9950.

 

 

 

 

daily_usdcad_30.04_17-59.gif

 

Chart. Daily USD/CAD

 

 

Comment here http://www.fbs.com/analytics/2012-05-01/17517-analysts-outlook-usdcad

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U.S. Manufacturing PMI beats forecasts(2012-05-01)

 

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U.S. Manufacturing PMI beats forecasts

Tuesday, May 1, 2012 - 14:15

 

The U.S. ISM Manufacturing PMI came out better than expected (54.8 vs. consensus-forecast 53.0 and 53.4 in March), pushing the greenback higher against its major counterparts. Positive PMI figures confirm the rebound of biggest economy in the world, lowering fears of the new policy easing required to stimulate the economy.

 

However, construction spending in March dell 0.1% vs. a 0.5% growth expected. Later today three FOMC members will deliver speeches; on Friday non-farm payroll figures will be next to offer investors the clues on the prospects of the U.S. economy.

 

 

 

 

daily_eurusd_30.04_18-17.gif

 

Chart. H4 EUR/USD

 

 

Comment here http://www.fbs.com/analytics/2012-05-01/17518-us-manufacturing-pmi-beats-forecasts

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Aspen Trading: recommendations on AUD/USD(2012-05-02)

 

 

 

 

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Aspen Trading: recommendations on AUD/USD

Wednesday, May 2, 2012 - 08:00

 

The Australian dollar fell against the greenback after Reserve Bank of Australia unexpectedly cut its main cash rate by 50 bps to 3.75% yesterday.

 

Analysts at Aspen Trading Group are convinced that the downward pressure on the AUD/USD is set to continue. In their view, the Australia’s economy may require more rate cuts on the back of problems in the housing sector and low inflation figures. The U.S. dollar, on the contrary, is strong on yesterday’s positive Manufacturing PMI report (54.8 vs. consensus-forecast 53.0 and 53.4 in March) and seems to have bright prospects.

 

Strategists recommend entering the trade at $1.0330 with a stop at $1.0500 and a target of $1.0000.

 

 

 

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Comment here http://www.fbs.com/analytics/2012-05-02/17519-aspen-trading-trading-audusd

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Commerzbank: technical comments on USD/CHF(2012-05-02)

 

 

 

 

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Commerzbank: technical comments on USD/CHF

Wednesday, May 2, 2012 - 08:45

 

Analysts at Commerzbank expect the USD/CHF to drop to the 0.9000 area, ahead of 0.8948 (200-day MA). In their view, the downside pressure on the cross may be eliminated only if it breaks through the key resistance, lying at 0.9191.

 

“Slightly longer term, we view the price action this year as a consolidation, but it is possible that this will extend to 0.8834/the 55 week ma prior to the resumption of the bull move”, analysts say.

 

Swiss PMI, released today, came out below expectations, pointing at the industry contraction (46.9 in April vs. consensus forecast 51.6 and 51.1 in March).

 

On Tuesday 08:45 GMT USD/CHF is trading at 0.9124.

 

 

 

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Comment here http://www.fbs.com/analytics/2012-05-02/17521-commerzbank-outlook-usdchf

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"AUD/USD drops further on RBA statement"(2012-05-04)

 

 

 

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AUD/USD drops further on RBA statement

Friday, May 4, 2012 - 07:00

 

 

 

 

 

The Australian dollar keeps weakening against its major counterparts because of the investor’s bets on further rate cuts increased.

 

According to the RBA Monetary Policy Statement, released on Friday, the RBA sees average growth of 3% in 2012, down from a February estimate of 3.5%. Consumer prices will rise 2.5% in the year to December, from a previous prediction of 3%. Underlying inflation is predicted to be at 2.25% from a previous 2.7%, the central bank said.

 

U.S. non-farm payrolls data, eagerly awaited today (13:30 GMT), may influence on the cross strongly. Economists forecast the number of employed people to grow by 176K in April compared with 120K increase in March.

 

BMO Capital: If the NFP report comes stronger than expected (higher than 176K), go short on AUD/USD. Reserve Bank of Australia lowered the key interest rate this week and, given the problems of the Australia’s economy, may cut them further. On the contrary, positive NFP figures will make the Fed unlikely to loosen monetary policy.

 

AUD/USD declined 1.8% this week and is currently trading in the $1.0262 area. Resistance for the pair lies at 1.0300, 1.0395, 1.0420, 1.0450, 1.0475 (local maximum), while support – at 1.0245, 1.0225 (local minimum) and 1.0200.

 

 

 

 

 

 

daily_audusd_04.05_10-58.gif

 

Chart. Daily AUD/USD

 

 

Comment here http://www.fbs.com/analytics/2012-05-04/17534-audusd-drops-further-rba-statement

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"ECB press conference: highlights"(2012-05-04)

 

 

 

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ECB press conference: highlights

Friday, May 4, 2012 - 08:30

 

 

 

 

 

The European Central Bank’s meeting, held on Thursday, was one of the most expected events of the week for the currency market.

 

The ECB left the benchmark rate at a record 1% low. Some market marticipants, however, expected the rate cuts after ECB President Mario Draghi last week said the bank was changing the growth and inflation outlook.

 

According to Draghi, the economic activity stabilized at low levels in Q1 2012. The inflation in 2012 is likely to exceed the target 2% level due to commodities price and indirect taxes growth. Downside risks are still strong, but the ECB forecasts a slow economic rebound in 2012.

 

ECB President has partially dispelled investor’s hopes on a third round of the LTROs: according to him, the positive effect of the second LTRO is yet to come. Mario Draghi said the operations supported the financial sector to avoid a credit crunch and strongly improved the funding conditions for the banks.

 

Nomura: The ECB will wait to see how its lending to banks will feed into the real economy. Economic conditions need to deteriorate significantly in the weeks ahead before the ECB will consider loosening monetary policy further at the June meeting.

 

Commerzbank: There are significant downside risks to the ECB’s growth outlook. Draghi indirectly hinted at next month’s ECB meeting when the bank will publish its new projections. Since the ECB may lower its growth forecasts, the rate-cut discussion will stay with us.

 

Berenberg: The pain threshold of the ECB for more policy action is high and has not been reached. Deteriorating survey data may be revisited at the next meeting, leaving the door for policy action at the June meeting open very slightly.

 

 

 

 

 

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Photo: Getty images

 

 

Comment here http://www.fbs.com/analytics/2012-05-04/17534-audusd-drops-further-rba-statement

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"GBP/USD down throughout the week"(2012-05-04)

 

 

 

dailymarketanaylysis.png

 

 

 

 

GBP/USD down throughout the week

Friday, May 4, 2012 - 10:30

 

 

 

 

The British pound declined 0.6% against the dollar this week after a five-day downward movement. The decline followed by two weeks of steady growth.

 

This week a bunch of negative data was released in Britain. The Halifax house price index in April dropped 2.4%, demonstrating the largest monthly decline since September 2010 (vs. forecasted 0.4% decline and a 2.2% growth in March). Manufacturing and services PMI declined in April, but still indicate the industry expansion (50.5 and 53.3 respectively), while construction PMI edged up to 55.8.

 

According to analysts at Charmer Charts, GBP/USD still remains under pressure with $1.6140 as a nearby objective.The upward correction is contained by $1.6220.

 

 

 

 

 

 

 

daily_gbpusd_04.05_14-37.gif

 

Chart. Daily GBP/USD

 

 

Comment here http://www.fbs.com/analytics/2012-05-04/17538-gbpusd-down-throughout-week

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"Euro slides on political uncertainty"(2012-05-07)

 

 

 

 

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Euro slides on political uncertainty

Monday, May 7, 2012 - 07:45

 

 

 

 

 

The common currency fell to a three-month low after France and Greece voted against pro-austerity politicians on Sunday.

 

As expected, Francois Hollande got 51.7% of the vote in the French presidential election held on Sunday against about 48.3% given for incumbent Nicolas Sarkozy. According to analysts, his victory may be interpreted more as an outcry against the austerity policy, pursued by Sarkozy, than the support of Hollande's own program.

 

Societe Generale: Mr. Hollande’s victory was largely expected, but it does act as a trigger to increase demand for the dollar.

 

Parliamentary elections in Greece increase bearish pressure on the euro: the debt crisis shaved the popularity of two main parties, attempting to eliminate budget deficit and to collaborate with EU. Centre-right New Democracy led with 19%, down from 33.5% in 2009. Left-wing coalition Syriza came surprisingly in second place with 16.7%, while centre-left PASOK stood in third place with 13.3%, down from 43.9% in the last elections.

 

UBS: If Greece chooses to resolve the crisis on its own, the EU may refuse credence and financial aid.

 

FX Prime: There are major concerns about the euro. What’s common to both Greek and French voting is that people aren’t feeling good about austerity measures, which are the crux to a resolution of Europe’s debt problems.

 

EUR/USD dropped to $1.2954 early Sunday, but then bounced back to $1.3010. However, the key $1.3000 support, the lower bound of a side channel (exists since January), was broken.

 

Analysts at Nomura Holdings expect the pair to consolidate in the $1.26-1.28 area within a few weeks.

 

 

daily_eurusd_07.05_11-44.gif

 

Chart. Daily EUR/USD[/url]

 

 

Comment here http://www.fbs.com/analytics/17547-euro-slides-political-uncertainty

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"JP Morgan: trading EUR/JPY"(2012-05-07)

 

 

 

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JP Morgan: trading EUR/JPY

Monday, May 7, 2012 - 09:00

 

Analysts at J.P. Morgan Asset Management recommend selling EUR/JPY at current levels, setting a stop at 106.00 and a target of 102.50.

 

According to specialists, the Hollande’s victory was already priced in, while Greece will weigh on the euro. They underline that the market is unstable: any comments from Hollande after the election or something later in the week may influence the pair.

 

 

 

 

daily_eurjpy_07.05_12-57.gif

 

Chart. Daily EUR/JPY

 

 

Comment here http://www.fbs.com/analytics/2012-05-07/17550-jp-morgan-trading-eurjpy

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