Asian Stocks Advance On China’s Call For Stronger Growth But Sentiment Still Fragile
May 21st
After China’s premier called for additional efforts to support growth, Thailand’s economy grew firmly in Q1 and world leaders urged Greece to stay in the euro zone, Asian stocks recovered some of last week’s losses, the yen slid while commodities gained.
The MSCI Asia Pacific Index added 0.5% at 12:56 in Tokyo as worries eased on believes China and Japan may take steps to support growth, while world leaders called for Europe to balance austerity with growth during the G-8 summit.
China’s Premier Wen Jiabao said over the weekend that his country must adopt a “proactive fiscal policy and a prudent monetary More >
Neutral GBP/USD, And Within 45 Pip Range Today
May 21st
GBP/USD Open 1.5796 High 1.5840 Low 1.5731 Close 1.5816
On Friday Pound/Dollar bounced up, increasing with 100 pips. The Cable appreciated from 1.5731 to 1.5834 on Friday, in converse with the negative money flow sentiment at almost -9%, closing the week at 1.5816. Today the British Pound strengthened further, ascending up to 1.5840, than began dropping.
On the 1 hour chart the downward channel is on hold, while on the 3 hour chart quotes broke down of the 5840 range trading. First resistance is today’s peak at 1.5840. Break above it should extend the bullish movement further towards 1.5964. The nearest support More >
Asia Takes A Breath
May 21st
Asian markets performance was slightly higher with a slight rebound in risk appetite. Nikkei gained 0.26%, Shanghai SE Composite 0.30% and the ASX 200 0.67%. With Chinese PM Wen reassuring the markets saying that growth remains a priority, the CNY fixed at 6.3116, 93pips lower than Friday’s level and undershooting the 6.3130-75 range of expectations. The JPY weakened overnight against its major counterparts and commodities on rising speculation that the BoJ would be intervening in the near term. The currency fell 0.3% against the dollar to 79.29 after having appreciated 1.2% last week. We are positioned in line More >
Euro Rebounds But Still Under Pressure
May 21st
The euro (EUR) edged higher to 1.2812 rebounding from a four-month low at 1.2641 against the US dollar. The single currency tumbled on Friday on concerns over Greece’s political uncertainty as well as growing instability in the Spanish banking sector. European leaders of G8 met during the weekend to discuss steps needed to fight Europe’s debt crisis and reaffirmed the importance that Greece remains in the eurozone. G8 leaders also focused on ways to stimulate eurozone growth but no detailed plans on how to resolve the problems were announced. But the single currency remains under pressure as investors are worried about More >
EUR/USD Bounces Up, But Still Pressured
May 21st
EUR/USD Open 1.2751 High 1.2814 Low 1.2641 Close 1.2964
On Friday Euro/Dollar traded traded first downwards, than commenced climbing with almost 160 pips. The European currency appreciated from 1.2641 to 1.2799 on Friday, not matching the negative money flow sentiment at bellow -11%, closing the week at 1.2964. This morning the Euro lifted further, reaching 1.2814.
On the 1 hour chart the downward channel is on hold, while on the 3 hour chart the downward channel has slowed down. Break above the nearest resistance and today’s top at 1.2814 may trigger further strengthening of the Euro. Going bellow Friday’s bottom and first More >
EUR/USD Climbs Back Above 1.28 After Reaching All-Time EUR-Shorts
May 21st
The EUR/USD found some support from the 1.2625-1.2660 area. The 1H chart shows a market rallying above a declining channel that represented a slowdown of the fall as it was formed with an extended bullish divergence. We broke above this on Friday 5/18 to end a trading week, and start with a foray to crack the 1.28 handle. Now the RSI has tagged 70, a sign of bullish momentum in the short-term. We can say that the market is likely entering a consolidation period if not a more bullish correction.
Looking at the 4H chart we see a fibonacci retracement study More >
AUD/USD: Aussie Gaining Strength This Morning After Friday’s Sharp Fall
May 21st
For the 24 hours to 23:00 GMT on Friday, AUD weakened 0.72% against the USD to close at 0.9819.
On Friday, the Australian Prime Minister, Julia Gillard, affirmed that the nation has come out of the global financial crisis strongly, and continues to grow with low unemployment and low inflation.
LME Copper prices rose 1.1% or $87.8/MT to $7795.3/ MT. Aluminium prices rose 1.5% or $29.5/MT to $2016.3/ MT.
In the Asian session, at GMT0300, the pair is trading at 0.9853, with the AUD trading 0.34% higher from Friday’s close.
The pair is expected to find support at 0.9804, and a fall through could More >
USD/CAD: Pair Trading Above Its MA’s
May 21st
For the 24 hours to 23:00 GMT on Friday, USD rose 0.15% against the CAD to close at 1.0206.
In Canada, consumer prices rose 2.0% (YoY) in April, compared to a rise of 1.9% in March.
In the Asian session, at GMT0300, the pair is trading at 1.0196, with the USD trading 0.09% lower from Friday’s close.
The pair is expected to find support at 1.0147, and a fall through could take it to the next support level of 1.0097. The pair is expected to find its first resistance at 1.0238, and a rise through could take it to the next resistance level More >
USD/CHF: Swiss Franc Trading Higher Ahead Of SECO Consumer Confidence Data
May 21st
For the 24 hours to 23:00 GMT on Friday, USD declined 0.68% against the CHF and closed at 0.9397.
In the Asian session, at GMT0300, the pair is trading at 0.9388, with the USD trading 0.09% lower from Friday’s close.
The pair is expected to find support at 0.9342, and a fall through could take it to the next support level of 0.9296. The pair is expected to find its first resistance at 0.9468, and a rise through could take it to the next resistance level of 0.9547.
Trading trends in the pair today are expected to be determined by the release of More >
USD/JPY: Yen Drifting Lower This Morning Amid BoJ Easing Speculation
May 21st
For the 24 hours to 23:00 GMT on Friday, USD weakened 0.45% against the JPY and closed at 79.03. The Yen advanced, after Japan’s government on Friday raised its economic assessment for the first time in nine months.
In Japan, Nationwide department store sales rose 1.3% (YoY) to ¥480 billion in April, compared to a 14.1% rise in March.
In the Asian session, at GMT0300, the pair is trading at 79.14, with the USD trading 0.15% higher from Friday’s close.
The Yen is trading lower, on growing speculation that Bank of Japan (BoJ) would further stimulate the economy by weakening the yen via More >