Jan 13, 2012

Forex Crunch EUR/USD Jan. 13 – Rally Finds Limits

Forex Crunch EUR/USD Jan. 13 – Rally Finds Limits

EUR/USD Jan. 13 – Rally Finds Limits

Posted: 13 Jan 2012 02:43 AM PST

Euro dollar remains on high ground in the day after Draghi’s calming message. A fresh Italian auction should have provided support, but the rally found its limits after hitting the clear resistance line. Some important US figures close the week. Will the pair break higher? Or is the current failed attempt to move higher a sign for an upcoming downfall?

Here's an update on technicals, fundamentals and what's going on in the markets.

Read the rest of the article EUR/USD Jan. 13 – Rally Finds Limits

Winner’s Edge Trading Announces Currency Trading Contest

Posted: 13 Jan 2012 02:21 AM PST

Casey Stubbs lanuches a forex trading contest that begins on February 1st. The competition, held during the month of February, consists of trading via demo accounts with EAs allowed. 

Together with Arrowfield Trading, Winner’s Edge Trading is providing an interesting contest. Here are more details in the official press release:

Read the rest of the article Winner’s Edge Trading Announces Currency Trading Contest

Is change in the air?

Posted: 13 Jan 2012 02:12 AM PST

It is just possible that the worm is slowly turning for the single currency. After a possible double bottom on Wednesday at 1.2660, the single currency has climbed ever so gradually. Those extraordinary difficulties that many European banks had obtaining dollar funding late last year have eased to some degree, with the 3mth cross currency EUR/USD basis swap now down to -85bp from near -160bp late in November.

Traders are carrying record short positions in the single currency, while money managers, sovereign wealth funds and retail investors have been avoiding the euro and/or reducing exposure to it for months. As such, there is huge potential for a short-covering rally on merely a whiff of good news. EUR/CHF is inching towards the 1.20 level which the SNB has vowed to vigorously defend. Video:

Read the rest of the article Is change in the air?

Forex Daily Outlook January 13 2012

Posted: 12 Jan 2012 02:00 PM PST

We summarize this week Trade Balance in the US and in Canada are the major events this day. Here is an outlook on the market-movers awaiting us.

In the US, Trade Balance, value the imported and exported goods over the last month, is expected to further reduce from-43.5B on December down to -44.8B now.

Read the rest of the article Forex Daily Outlook January 13 2012

ECB Ready to Take a Hit on Greek Bonds?

Posted: 12 Jan 2012 06:36 AM PST

During the press conference, ECB president Mario Draghi was asked twice if the ECB will also take a haircut on Greek bonds. He avoided commenting on this directly. Also his Vice President said that PSI is Private Sector Involvement.

Sure, the ECB belongs to the public or official sector and not the private sector, but also he didn’t deny that the ECB would take a haircut. Is the door open to Official Sector Involvement? This could certainly help Greece.

Read the rest of the article ECB Ready to Take a Hit on Greek Bonds?

Draghi Successfully Calms Markets – EUR/USD Jumps

Posted: 12 Jan 2012 05:22 AM PST

Mario Draghi, the president of the European Central Bank, communicated calm and satisfaction with the central bank’s LTRO program. He claimed that it stabilized the system, and the message was felt at EUR/USD.

Draghi also provided an initial hint of a bigger role for the ECB in the Greek crisis.

Read the rest of the article Draghi Successfully Calms Markets – EUR/USD Jumps

USD/JPY:Trading the Preliminary University of Michigan Consumer Sentiment

Posted: 12 Jan 2012 05:17 AM PST

The Preliminary University of Michigan Consumer Sentiment Index surveys consumer attitudes and expectations about the US economy. A reading that is higher than predicted by the markets is bullish for the dollar.

Here are all the details, and 5 possible outcomes for USD/JPY.

Read the rest of the article USD/JPY:Trading the Preliminary University of Michigan Consumer Sentiment

British QE Expansion Likely in February

Posted: 12 Jan 2012 04:59 AM PST

The British Monetary Policy Committee left the interest rate unchanged at 0.50% and the Asset Purchase Facility at £275 billion, exactly as expected. GBP/USD remained unchanged at around 1.5350 following this decision.

The recent expansion of the program is predicted to end at the end of January and expectations are rising for a rise in February.

Read the rest of the article British QE Expansion Likely in February

ECB Pauses With Rate Cuts As Expected

Posted: 12 Jan 2012 04:47 AM PST

The European Central Bank left the interest rate unchanged at 1% as expected.

EUR/USD remains stable around the 1.2760, still enjoying the previous gains, until Mario Draghi’s press conference, which could send the euro lower. Stay tuned for a live blog of the event.

Read the rest of the article ECB Pauses With Rate Cuts As Expected

A softening of attitude from the EBA?

Posted: 12 Jan 2012 04:23 AM PST

Finally some recognition yesterday from the EBA that the imposition of a 9% capital buffer (by June), for all eurozone banks, might just be making a bad situation worse. Chairman Enria suggested that the EBA would review the 9% capital requirement should the policy measures implemented by the various eurozone governments to fight the sovereign debt crisis result in lower bond yields.

After the fiasco with UniCredit's rights issue over the past week and the resultant collapse in its share price, the EBA needed to at least show some flexibility or else its desire for the 9% target to be achieved through capital raisings would be rendered incredulous. Even so, it appears the EBA has a long way to go (on an intellectual level) before it grasps the impossibility of its demands. Video:

Read the rest of the article A softening of attitude from the EBA?
posted by

1 comment:

Subscribe to: Post Comments (Atom)