FOREX TRADING

We have seen improvement in sentiment since the beginning of the year, on the back of better-than-expected data in particular in the US. The substantial take-up at the second 3Y LTRO increases the likelihood that the rally can continue and that investor focus in general can move on from

LTRO2 is about 530 bn euros and has a response of 800 banks. This initially brought risk-on and USD-weakness especially to commodity currencies, but the Euro was pressured throughout the European session and continues to slide in the 2/29 US session as Bernanke’s speech at 10:00AM EST brought a bout

USD is mostly softer as risk appetite is supported by the ECB’s LTRO which resulted in a take-up of €530B and after an unexpected upwards revision to U.S. 4Q GDP. Global equities are firmer with Asia finishing to the upside while Europe is currently trading in positive territory. 4Q GDP

The second estimate of annualized US fourth-quarter 2011 GDP growth was 3.0%, which was above the 2.8% advance estimate and marked the fastest pace of growth since the second quarter of 2010. Consumer spending growth was revised to 2.1%, which was up modestly from the 2.0% advance estimate and reflected

The Aussie remains in an uptrend with potential to rise towards 1.10 next week. In the near term, though, there can be some intra-day Resistance near here at 1.0846, which is the projected Max High for the Day. An intra-day high of 1.0855 has already been seen. So, the market

The pair continues to hold on to its bullish tone as it looks to retarget further upside gains. As long as EUR continues to hold and trade above its key support at the 1.3322 level, the risk remains to the upside for a run at the 1.3484 level, its Dec

Next week’s ECB meeting, and specifically what President Draghi says about prospects for further LTROs are now key. As my colleague Steen Jakobsen says in his excellent piece, Early reaction to ECB LTRO not to be trusted, risk will come off if LTRO2 is the last one.

Let’s not forget that

The GBP/USD had a pretty flat consolidation with 1.5650 as support, and 1.5934 as the higher resistance pivot. The market has been slightly what risk-on since the LTRO2 was announced to be 530B euros. This has been pressuring the USD, and with a GBP/USD already in an uptrend before the

The FX markets were steady heading into the ECB 3-year lending operation but overall dealer sentiment was stacked against the greenback due to the LTRO operation in Europe and the semi-annual testimony from Fed Chairman Bernanke. The price action was initially choppy following the results of the 3-year LTRO

Today’s ECB 3yr LTRO was greater than the market expected and therefore we should expect to see an positive push in risk assets as the cash actually hits the market. This was the highest take up in LTRO history. Earlier there was a slight migration to risk off trades as

In the second round of easing provided by the European Central Bank for the banking sector, more than 800 European banks borrowed more than estimated from the European main lender, which provided cheap funds through allotting three-year tenders.

In the second round of easing provided by the European Central Bank for the banking sector, more than 800 European banks borrowed more than estimated from the European main lender, which provided cheap funds through allotting three-year tenders.

On Tuesday Dollar/Yen traded within 75 pip range. The currency couple appreciated from 80.01 to 80.78 yesterday, not matching the negative Interbank sentiment at almost -51%, closing the day at 80.43. This morning the Dollar is trading quietly against the Yen, with movements within yesterday’s range for now. On the

Yesterday’s intraday slide bottomed at 1.3389 and I think, that it was the final leg of the consolidation pattern below 1.3487. Current outlook is bullish, for a break through 1.3487 towards 1.3610. Initial minor support is projected at 1.3438 and crucial on the downside is 1.3389 low. 

The euro rose today as world equities turned positive ahead of the European Central Bank’s LTRO auction to inject money into the eurozone’s financial system. Risk sentiment in the market recovered as it is expected that about 500 billion euro of cheap loans will be offered to the European Banks