Market Outlook
Pound Strength Hinges on GDP Report, FOMC Threatens Euro and Yen
The British Pound looks to first-quarter GDP figures for another burst of strength. The Euro and Yen seem most at risk ahead of today’s Fed policy announcement.
Dollar In a Dangerous Position Ahead of a Contentious FOMC Decision
The US dollar is in a dangerous position both fundamentally and technically. The combination of suspiciously ‘quiet’ trading conditions for the currency against the backdrop of heavy event risk in the upcoming Fed policy decision sets the stage for a potentially explosive return to more active trading conditions.
USD Outlook Remains Bullish On FOMC, Euro Bearish Formation In Focus
The U.S. dollar is struggling to hold its ground on Tuesday as market participants increase their appetite for risk, but we may see the reserve currency bounce back over the next 24-hours of trading should the Federal Reserve continue to soften its dovish tone for monetary policy.
Aussie Continues Slide against Yen as Rate Cut Expectations Surge
Piggybacking off of the deflationary producer price index, the Australian consumer price index had its biggest miss since the first quarter of 2011. With price pressures seemingly absent from the economy, the Reserve Bank of Australia is all but guaranteed to cut rates next week, sinking the Australian Dollar.
Commodities May Correct Higher as Markets Gear Up for FOMC
Commodity prices may have scope recovery over the near-term amid corrective flows as markets prepare for Wednesday’s Federal Reserve monetary policy announcement.
Euro Vulnerable on Bond Sale Outcomes, German Forecasts Update
The Euro appears vulnerable as Italy holds a bond auction amid an accelerating backlash against austerity while Germany updates its official economic forecasts.
Euro Price Action Confounds; All Signs Risk Negative But Market Supported
Despite a plethora of negative risk in the markets at present, the Euro remains very well supported on dips and we do not take this lightly…
AUDUSD: Trading Australias Consumer Price Report
The headline reading for inflation is expected to grow at the slowest pace since the fourth quarter of 2009, and easing price pressures could spark a sharp selloff in the AUDUSD as market participants look for a rate cut in May.
Euro To Threaten 1.3000, Bullish Sterling Formation To Gather Pace
Market sentiment waned on Monday amid the weakening outlook for the euro-area, and the shift away from risk-taking behavior may gather pace throughout the week as European policy makers struggle to restore investor confidence.
Aussie and Euro Drop against Japanese Yen as Poor Data Stirs Concerns
A batch of poor data out of Asia and Europe has reignited concerns over global growth, while the French presidential election results prompted investors to sell the Euro. The safe haven currencies, the Japanese Yen and US Dollar, were far and away the best performers, easily outshining the beaten down Australian Dollar.
Commodities Sink as Global Slowdown Fears Swell, US Dollar Rallies
Commodity prices are pushing broadly lower, with more of the same likely ahead, as global slowdown fears intensify and the US Dollar rides haven demand higher.
Euro Puts in Bullish Weekly Close to Open Fresh Upside Extension
Last Friday’s close above 1.3215 is viewed as a bullish development which could now open the door for additional upside before underlying bear trend resumption…
Dollar: Fed Forecasts and 1Q GDP Promising Breakout Catalysts
With the dollar’s close this past Friday, it managed to carve out a weekly range that fit neatly within the breadth of the previous period, which in turn fit within its predecessor. In other words, the greenback has worked itself into significant congestion – the perfect setup for heavy event risk in a FOMC rate decision and US GDP reading to force a critical breakout.
Euro Relief Rally Offers Selling Opportunity, Pound Eyes Key 1.6250
Market sentiment firmed up on Friday as the global community increases its effort to combat the sovereign debt crisis, but the rise in risk appetite is likely to be short-lived as the threat for contagion continues to drag on investor confidence.
Loonie, Sterling March Higher Against US Dollar on Strong Data
Two of the United States’ largest trading partners, Canada and the United Kingdom, have seen a string of stronger data recently, boosting their respective currencies, the Canadian Dollar and the British Pound, against the US Dollar. The Sterling maintains its lead as this week’s top performer by a wide margin.
Commodity Bloc to Underperform While Major Currencies Consolidate
Although the major currencies remain locked in some short-term choppy consolidation, we continue to see evidence of more underperformance in the risk correlated currencies…
Crude Oil, Gold Aim Higher as Risk Appetite Swells into the Week-End
Crude oil and gold prices aim to close the trading week on a positive note as swelling risk appetite boosts growth-linked commodities and weighs on the Dollar.
EURCAD: Trading Canadas Consumer Price Report
Price growth in Canada is expected to expand at the slowest pace since November2010 and easing price pressures may drag on the Canadian dollar as it dampens speculation for a rate hike.
US Dollar Direction Still Unclear But Commodity Bloc to Underperform
Although the US Dollar remains locked in some short-term consolidation, we continue to see evidence of more underperformance in the risk correlated currencies…
Dollar Mixed as Risk Winds Stir, Treasury Auction Warns of Inflation
Technically, the Dow Jones FXCM Dollar Index (ticker = USDollar ) closed Thursday with its third consecutive advance – matching the most robust bull trend for the benchmark in five weeks. Yet, direction does not tell us the full story.
