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USD/CAD unable to shake negativity




FXstreet.com (New York) - The USD/CAD foreign exchange rate has been unable to muster a sustained push Monday capable of eliminating the entirety of its losses after a prolonged rebound that has already risen out of the depths at 1.0319 (daily low).


In these moments, the USD/CAD is unable to shake its negatively, relegated to losses of -0.22%, currently trading at 1.0340. Technically speaking, the USD/CAD remains capped well fortified by short-term supports at 1.0326, ahead of 1.0296, and 1.0269, notes the Danske Research Team.


USD/CAD strategic bias


According to the Technical Analyst Team at ICN.com, “The USD/CAD is still trading negatively within the normal bearish correction in the ascending channel. The downside move might extend this week especially that the pair is stable below 1.0430 and Linear Regression Indicators tends to be negative. Breaking 1.0315 might clearly extend the downside move in the upcoming period.”










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July 22, 2013
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Flash: Portuguese politics remain split – Deutsche Bank




FXstreet.com (New York) - The impending situation in Portugal took a different turn this weekend, culminating in new chapter of drama, notes Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank.


Key quotes


In Europe, “a major political development of note on Sunday was in Portugal where the major parties failed to agree on a national salvation pact. However the President announced a new solution to the political situation late last night which involves the ruling coalition government remaining in office after the ruling bloc gave the President additional guarantees that they would keep their coalition together to see through the country’s EU program.”


The President ruled out calling a snap general election two years ahead of schedule and said the ruling coalition would shortly table a confidence motion setting out its economic plans until the end of it term in 2015.










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July 22, 2013
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EUR/USD in fresh 5-week highs around 1.3230




FXstreet.com (Edinburgh) -The euro is accelerating its pace now, lifting the EUR/USD to fresh highs in the boundaries of 1.3230, levels last seen in late June.


EUR/USD bolstered by USD weakness


The heavy selling is still hovering over the greenback, testing the key support at 82.00 and posting multi-week lows at the same time in terms of the US Dollar Index. BBH Global Currency Strategy Team suggested, “Even though the greater uncertainty about the timing of Fed tapering remains the strongest driver in FX markets, the news flow out of Europe also supports our near-term dollar consolidation call. We see scope for the euro to stage a break of the $1.3250 level this week. On the other hand, a move down to the $1.3050-80 area would put this view in doubt”.


EUR/USD critical levels


At the moment the pair is up 0.28% at 1.3223 and a break above1.3255 (high Jun.21) would open the door to 1.3261 (76.4% of 1.3417-1.2755) and then 1.3302 (high Jun.20). On the downside, support levels align at 1.3164 (low Jul.23) followed by 1.3115 (low Jul.22) and finally 1.3106 (cloud base).










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July 23, 2013
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AUD/USD extends the correction higher




FXstreet.com (Edinburgh) -After hitting session lows around 0.9230, the Aussie dollar is picking up pace and pushing the AUD/USD to the current area of 0.9260/65.]


AUD/USD trimming losses


The pair is thus paring earlier losses from overnight tops around 0.9290, ahead of key inflation data in Australia due tomorrow. Gareth Berry, FX Strategist at UBS commented, “Our economists think inflationary pressure will be weak enough to trigger a 25bp RBA cut on August 6. Only 17bp of easing is currently priced in, so we expect significant Australian dollar sensitivity to any surprise in either direction”.


AUD/USD levels to watch


At the moment the pair is advancing 0.19% at 0.9267 with the next hurdle at 0.9286 (high Jul.23) ahead of 0.9292 (high Jul.17) and then 0.9301 (38.2% of 0.9792-0.8998). On the downside, a breach of 0.9187 (MA10d) would open the door to 0.9180 (MA21d) and then 0.9175 (low Jul.22).












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July 23, 2013
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Flash: China weighing on AUD – TD Securities




FXstreet.com (London) - Research teams at TD Securities noted the performance of AUD post Chinese data overnight.


Key Quotes:


“A miss on the flash HSBC Chinese manufacturing PMI contrasted the better than expected PMI’s from German and France overnight, and the reaction in the FX space reflects that divergence with the EUR at the top of the G10 performance ranks and AUD at the bottom”.


“The AUD had a lot to digest in a short period, with a mixed but overall better than expected Australian inflation report initially lifting the currency above 0.9300 before the flash Chinese PMI unwound any positive tone shortly after”.
“The somewhat better inflation report suggests the threat of an RBA rate cut next month has diminished slightly, but the more pressing concern for markets is the state of activity in China”.


“The flash PMI raises fears of a sub-50 print for the official PMI next week, and such an outcome could re-ignite fears of a ‘hard landing”.












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July 24, 2013
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Flash: USD/JPY downside held by 98.57 support – UBS




FXstreet.com (New York) - UBS Strategists, Gareth Berry and Geoffrey Yu take a technical perspective at today's majors and outline the technical positions.


Key quotes


Beginning with the USD/JPY, Any downside will be held by strong support at 98.57, which was held previously on a closing basis. Focus is on resumption of upside, with resistance at 101.53 ahead of the key resistance at 103.74, suggesting a bullish intraday outlook.”


“As for the GBP/USD, upside is held by a strong resistance at 1.5394. A closing break above this would be a bullish development. Initial support is at 1.5258 ahead of 1.5171.


Finally, “regarding the USD/CHF, with the MACD settled below the zero line, our focus is on further downside, with initial support at 0.9242 ahead of critical 0.9130.Resistance is at 0.9416 ahead of 0.9478.”












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July 24, 2013
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GBP/USD in red within the range




FXstreet.com (Edinburgh) -The GBP/USD is posting meager gains at the time of writing, hovering over 1.5355/60 as the GBP rally is showing signs of exhaustion around the key 1.5400 handle.


GBP/USD recovery faltering


Same as its European counterpart, the pound is recovering ground lost in the recent USD rally from mid-June to early July, although the pair seems to lack vigour to surpass 1.5400 the figure so far. In the opinion of Nick Mannion and Paul Robson, Strategists at RBS, “Risks would be more two-way up at 1.54 and turn to downside as spot approaches 1.57. While we’re still concentrating on the policy event risks of early August to provide the next directional signal, talk of sustained recovery in the UK should be mildly GBP supportive. On this, we continue to believe that the scope for UK data to surprise is becoming increasingly limited”.


GBP/USD levels to watch


At the moment the pair is down 0.06% at 1.5358 with the next support at 1.5315 (low Jul.24) ahead of 1.5289 (MA30d) and finally 1.5258 (low Jul.22). On the flip side, a break above 1.5390 (high Jul.24) would open the door to 1.5393 (high Jul.23) and then 1.5442 (high Jun.26).












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July 24, 2013
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Flash: USD/JPY faces strong correction at 98.57 – UBS




FXstreet.com (New York) - UBS Strategists, Gareth Berry and Geoffrey Yu take a technical perspective at today's majors and outline the technical positions.


Key quotes


Beginning with the USD/JPY, “Any downside will be held by strong support at 98.57, which was held previously on a closing basis. Focus is on resumption of upside, with resistance at 101.53 ahead of the key resistance at 103.74, suggesting a neutral intraday outlook.”


“Upside is held by a strong resistance at 1.5394. A closing break above this would be a bullish development. Initial support is at 1.5258 ahead of 1.5171.”


Finally, “regarding the USD/CHF, “with the MACD settled below the zero line, our focus is on further downside, with initial support at 0.9323 ahead of 0.9242.Resistance is at 0.9416 ahead of 0.9478.”












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July 25, 2013
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USD/JPY collapses to 98.00




FXstreet.com (San Francisco) - The Dollar continues with its decline against the Japanese Yen and after collapsing around 60 pips from 98.60 in the last few minutes, the USD/JPY has fallen to break the 98.20 key level and to test the 98.00 support, lowest since June 27th.


Currently, the USD/JPY is trading at 98.10, 1.20% negative on the day. The short term perspective remains slightly bearish according to the FXstreet.com trend index in the 1-hour chart. Indicators such as MACD, CCI and Momentum are pointing to the south while the Stochastic is bullish.


Below the 98.00, next supports are 97.60 and 97.20. On the upside, resistances are now at 98.20, 99.00, 99.10 and 99.85.














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July 26, 2013
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Flash: EUR stronger as Spain´s negative GDP met with enthusiasm - BTMUFXstreet.com (Barcelona) - Derek Halpenny, European Head of Global Markets Research at the Bank of Tokyo Mitsubishi UFJ notes that he can’t recall a negative GDP print (GDP in Q2 -0.1%, released yesterday) being met with such enthusiasm as Spain’s yesterday – the data and the reaction to it highlights the current situation in the euro-zone.Key Quotes“Optimism is rising but the improvement is relative and economic conditions will still be very weak over the coming quarters.” “In our view that means the ECB will come under increasing pressure to do more to stimulate demand after the summer break. The ECB press conference tomorrow will possibly be more about highlighting the fact that conditions are improving but the attempt at “forward guidance” has been pretty poor with the euro stronger and short-term yields higher. “More will be required by the ECB. The only data from the eurozone today will be German and euro-zone unemployment – which will tell very different stories with periphery weakness leaving EZ unemployment at an expected 12.2% in June – a record.”OctaFX.Com - Please click here to see Financial News/Forex News on OctaFx official pageJuly 31, 2013OctaFX.Com News Updates