Alan’s Forex Blog

Action Insight Daily Report Euro Lifted by Germany GDP, Possible Head & Shoulder Bottom The common currency strengthens against the greenback and Sterling in early European session after data showed growth in Germany accelerated to fastest pace is 12 years in Q1. GDP growth accelerated from 0.3% qoq in Q4 to 1.5% qoq in Q1, much stronger than expectation of 0.7%. Yoy rate was also up from 1.6% to 1.8%. The data is echoing ECB Trichet’s comment that economic fundamentals in the Eurozone

Action Insight Mid-Day Report Yen Maintains Momentum as Risk Aversion Dominates Yen remains strong today and extends it’s strength across the board in early US session. Yen buying was triggered on risk aversion following 2% fall in Nikkei. Momentum continues with European stock markets down and US set to have a lower open. In addition to the concern over credit market crisis, markets are starting to shift the focus to inflationary pressures, in particular with oil prices breaking into $125 per

Action Insight Daily Report Yen Broadly Higher, Risk Aversion Back? The Japanese yen is broadly higher today following weakness in the stock markets, in particular with Nikkei Down 2%. EUR/JPY led the fall in yen crosses for some time and is now joined by USD/JPY and GBP/JPY. Technically speaking, firstly, USD/JPY has reached the target of 104.96/108.59 resistance zone already. Loss of upside momentum is seen in the rebound from 95.77 and the pair is now pressing a near term channel support.

Action Insight Mid-Day Report Euro & Sterling Recovers after ECB & BoE on Hold After initial weakness today, both Euro and Sterling regain some grounds. ECB is on hold at 4.00% today as markets originally expected. Trichet maintains his usual hawkish tone in the following press conference by emphasizing that the central bank’s monetary policy was designed to deliver medium-term price stability and added that inflation will stay high “for a rather protracted period.” While Trichet

Action Insight Daily Report EUR/USD at New Record High, USD/JPY Pressing 100 The dollar’s weakness resumes again and sinks to record low against Euro and Swissy. On the other hand, strength in the Japanese is even more apparent with USD/JPY making new 12 year low and is now pressing 100 psychological level. Yen’s strength is also felt strongly across the board with yen crosses remaining heavy. A couple of factors are contributing to the movements. Firstly, obviously markets are concerned that

EUR/USD’s recent rally resumes after taking out 1.5490 firmly and scores new record high of 1.5591. At this point, intraday bias remains on the upside as long as 1.5477 minor support holds. Sustained break of 61.8% projection of 1.3360 to 1.4966 from 1.4438 at 1.5431 now sets the stage for…

Cable’s rise from 1.9360 resumes after breaking 2.0219 resistance and surges to as high as 2.0286 so far, meeting mentioned 100% projection of 1.9360 to 1.9971 from 1.9720 at 2.0331. At this point, intraday bias remains on the upside as long as 2.0251 minor support holds. On the downside below…

USD/CHF’s recent down trend resumes by taking out 1.0149 and 1.0132 support successively, reaching as low as 1.0090 so far. At this point, intraday bias remains on the downside as long as 1.0197 minor resistance holds. Further decline is expected to next downside target of 100% projection of 1.2467 to…