RBNZ Stays Dovish, BoE and BoC Next Central bank meetings dominate the forex markets today. Kiwi was a touch softer after RBNZ left rates unchanged at 2.50% and maintained a dovish tone in its statement. BoE and BoC will announce decisions later today and are both expected to be on hold. While Euro and Swissy remain firm against the greenback, commodity currencies continue to pare earlier gains and receive little boost from rally in Asian and European stock markets. Aussie is also pressured by mixed employment report released overnight which prompted economists to rethink the rate path of RBA. Gold is trading below 1000 level and it looks like the current consolidation will extend for a while and thus, will probably give the greenback some temporary support. Full Report Here... |
RBNZ Meeting Review: Staying Dovish Though Recession May Be Ending The RBNZ left the OCR unchanged at 2.5% and maintained a dovish tone and easing bias in the accompanying statement. Regarding economic outlook, the central bank did revise upward its forecasts on both domestic and global growth. Full Report Here... Central Banks Previews - RBNZ, BoE, BoC The Bank of Canada should probably leave the overnight rate unchanged at 0.25% for the 5th consecutive month. Economic developments in recent month have been consistent with or modestly better than the central bank's expectation. GDP contracted -3.4% qoq in 2Q09 after a downwardly revised -6.1% qoq decline in the previous quarter. This was inline the central bank's forecast of a -3.5% decline. However, payrolls unexpectedly increased +21.1K in August after falling -44.5K in the prior month while consumer spending also improved. With the worst of recession seems to be in rear mirror, we do not see the needs for additional unconventional measures. Full Report Here... |
Trade Idea: USD/CHF - Sell At 1.0490 As the greenback has remained under pressure after falling to 1.0383 yesterday, suggesting a test of previous chart support at 1.0370 is imminent and break there would extend the medium term downtrend has resumed for further weakness towards 1.0339 (50% projection of 1.1967-1.0592 measuring from 1.1026), however, oversold condition would limit downside to 1.0290/00 and risk has increased for a rebound later. Read more... Trade Idea: GBP/USD - Buy At 1.6455 Despite rising marginally to 1.6592 yesterday, lack of follow through buying suggests minor consolidation would take place and test of the Tenkan-Sen cannot be ruled out, break there would bring minor support to 1.6455, however, renewed buying interest is likely to emerge above the Kijun-Sen (now at 1.6439) and bring another rally . Above said resistance would extend the rise from 1.6133 low to 1.6625 chart resistance, then towards 1.6654 (100% projection of 1.6113-1.6445 measuring from 1.6322) but upside is likely to be limited to 1.6688 (61.8% Fibonacci retracement of 1.7044 to 1.6113) and bring retreat later. Read more... Trade Idea: EUR/USD - Buy At 1.4480 As the single currency has maintained a firm undertone, suggesting recent rally is still in progress and the medium term upmove should extend gain to 1.4646 (61.8% projection of 1.2885-1.4339 measuring from 1.3747), however, weakening of near term upward momentum should prevent sharp move beyond 1.4700 and reckon price would falter well below 1.4763 (1.618 times projection of 1.4045 to 1.4407 measuring from 1.4177) and risk has increased for a retreat later. Read more.... Trade Idea: USD/JPY - Sell At 92.80 Despite falling to 91.61 yesterday, the greenback rebounded from there on short-covering and minor correction to 92.46-57 (current level of the Kijun-Sen and Ichimoku cloud bottom) cannot be ruled out, however, resistance at 93.31 (just above the Ichimoku cloud top at 93.29) should remain intact and bring another decline later. Below said support at 91.61 would extend recent decline towards 91.00/10, however, near term weakening of downward momentum would limit downside to 90.70 (100% projection of 97.79 to 93.42 measuring from 95.07) and risk from there has increased for a rebound later. Read more... |
EUR/GBP Daily Outlook Daily Pivots: (S1) 0.8768; (P) 0.8789; (R1) 0.8819; More. EUR/GBP rises further in early European session today and at this point, intraday bias remains on the upside for a test of 0.8837 resistance first. Break will confirm resumption of rally from 0.8454 and should target 38.2% retracement of 0.9799 to 0.8399 at 0.8934 next. On the downside, below 0.8787 minor support will turn intraday bias neutral again and argue that consolidation from 0.8837 is possibly still in progress. Nevertheless, even in case of another fall, downside should be contained by 0.8652 resistance turned support and bring rally resumption. Read more... All Technical Outlook Reports | Daily Top Movers | Top 5 | Current | Last | Change
(Pips) | Change
(%) | | EURAUD | 1.6963 | 1.6877 | +86 | +0.51% | | AUDUSD | 0.8592 | 0.8622 | -30 | -0.35% | | EURCAD | 1.5753 | 1.5701 | +52 | +0.33% | | GBPCHF | 1.7175 | 1.7224 | -49 | -0.29% | | EURGBP | 0.8821 | 0.8798 | +23 | +0.26% | Last Updated: Sep 10, 08:10 GMT Currency Heat Map Daily View | USD | EUR | JPY | GBP | CHF | CAD | AUD | | USD | | | | | | | | | EUR | | | | | | | | | JPY | | | | | | | | | GBP | | | | | | | | Last Updated: Sep 10, 08:10 GMT |
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