Category Archives: FXstreet Technical Market View

fxstreet technical market view

London Session

Global financial markets appear on the cusp of climactic price movement. Nearly every asset class has exhibited high volatility as tensions increase and market participants reveal the raw emotions of fear and greed. Fresh all-time highs and lows can be found in multiple areas, from currencies to commodities, moving hand-in-hand due to their US dollar relationship. After all, commodities are dollar-denominated, so a weakening Greenback makes food, energy, and metals cheaper to non-US investors

Euro traded at a record high versus the dollar as views the Fed injection will not suffice

Euro traded at a record high versus the dollar as views the Fed injection will not suffice U.S. Dollar Trading (USD) was weaker across the board versus a number of majors trading at record lows once again. Many of the moves were on views from Citigroup Inc. to Goldman Sachs Group Inc. which expect the Federal Reserve’s plan to inject $200 billion into the banking system may fail to break the freeze in money-market lending. In U.S. share markets the NASDAQ was down -61.45 points (-0.69%) whilst

13/3/2008 – the current market sentiment

After Excessive trading volatility conditions contained the forex market on the news of the fed new temporary program which can solve the liquidity problems of the sub-prime mortgages in compensate of treasury bonds, the market started back to reevaluate the conditions lowering the effect of the package impact pushing the single currency up to a new all times low at 1.5573 and the yen lower than 101 for the first time since 1995. the joint action can give back some stability and trust after

New York Session

The USD fell to new all-time lows against the European single currency (EUR) just one day after a Fed plan to ease the credit crunch inspired sharp USD gains.  EUR/USD rose from about 1.5450 in early NY trading and peaked in the late afternoon after making a high around 1.5570.  The greenback was sold heavily in Asian and European trading, as Chinese officials indicated a need to hold stronger currencies in their FX reserves at the expense of the USD.  Mid-east sovereign wealth

$/yen, finally achieved long term target but….

From a long term perspective, $/yen has finally reached the downside target since last summer at the base of the triangle-type consolidation that has been forming since 1999 (currently at 101/102) . In the bigger picture, this scenario raises potential for an important bottom to form nearby (see shorter term below), with at least 3-6 months of gains back toward the ceiling of the pattern after (currently at 123, see “ideal” scenario in red on weekly chart below). However, with scope for more

The Euro rose to a record high

• The Rupee ended up against the Dollar as it tracked the domestic stock market. The USD/INR pair ended at 40.45 from 40.48 yesterday. • The 6- month and 1-year forward premium was at a 0.79% and 0.78% as compared to 0.77% and 0.78% yesterday. • The Euro rose to a record high against the greenback following comments by ECB Webber indicating no possibility of a rate cut by ECB and better than expected data from the Euro zone. However, later on the announcement of coordinated central bank action

11/03/’08 – US Trade Balance

Economic News   USD The greenback slipped lower against the JPY yesterday as U.S stocks tumbled on the back of heightened recession speculation. Therefore carry trades continued their sharp unwind as “riskier” positions were pared off by investors. However the greenback did manage to consolidate nearly all across the board today, in particular against the EUR on the back of comments from President Trichet that the ECB is concerned about the recent exchange rate volatility. Nevertheless,

11/3/2008 – the current marke sentiment

The news that BOC, BOE, ECB, SNK and the Federal Reserve have announced measures to ease inject funds in the financial markets as what has happened in last December and January in the money markets. Such coordinated central bank action to shore up liquidity can give back some trust to the equity market which can trigger a new carry trade wave supporting the greenback and the other high yielding currencies versus the Japanese yen which pushed up above 103 after the news. The US trade deficit