FOREX TRADING

The pair reversed to the downside yesterday, affected by the negativity seen on Stochastic which is positive over the 4-hour basis, while SMA 50 provides strong support from below. In general, trading within the ascending correctional channel supports us to expect an intraday upside move today, noting that our expectations

Markets are expecting the Bank of England to expand quantitative easing at Thursday’s MPC policy decision with consensus expectations of a £50bn addition to the amount of bond purchases. A GBP50bn expansion has been priced into Sterling and the risks are biased towards the bank deciding to wait this month

The Asian session was a little turbulent as one newswire reported China CPI data early and incorrectly, while Greek headlines suggested the latest meeting had ended inconclusively – only to subsequently inform us only one issue remained unresolved.

U.S. Dollar Trading (USD) the positive momentum continued into Asia and Europe but stocks in the US failed to extend the recent rally as Greece negotiations staggered along and profit takers emerged. There was no major data out overnight with the market relative quiet ahead of the two central bank

Mid-way through the session Chinese CPI data printed much higher than expected, leading to concerns that Beijing won’t move to loosen policy. The official CPI print was +4.5%y/y, with food prices leading the drive with a 10.5%y/y gain. At the same time, data showed that producer prices increased 0.7%y/y, which

EUR: Euro is currently trading at 1.3253 levels. Euro is trading firm even though Greek political leaders yet again failed to sign off on a tough reform and austerity programme to secure the most vital new international bailout, but Prime Minister Lucas Pademos has said that they would try to

On Wednesday Euro/Dollar traded within 75 pip range on Greek debt talks prolonging. The European currency depreciated from 1.3289 to 1.3289 yesterday, not matching the positive Interbank sentiment projection at almost +21%, closing the day at 1.3259. This morning the Euro is trading quietly, moving at the upper side of

The EURO closed higher on Wednesday as it extends Tuesday’s rally above the 38% retracement level of the OctoberJanuary decline crossing. The midrange close sets the stage for a steady opening on Thursday. Stochastics and the RSI remain neutral to bullish signalling that sideways to higher prices are possible nearterm.

The Chinese inflation unpredictably rebounded in January, as a weeklong holiday boosted the consumer’s spending along with the gains in the food prices. The Chinese economy released the annual figures for the producer prices index, where it met economists’ expectations of 0.7%, yet this reading is a retreated reading compared

The MPC decision at noon today will grab domestic markets’ attention. A series of better forward-looking indicators- including the recent PMIs- have suggested that the UK may be benefitting from something of a cyclical pick-up, leading some to question the need for fresh policy stimulus. To our minds, any cyclical

The Euro (1.3260) is ranged between 1.3215-3290. Good Support is seen in 1.3200-3185 region and the chances of seeing 1.3320-40 on the upside is still alive. Dollar-Yen (77.14) dipped to a low of 76.71 and has bounced back well from there and is keeping up the chances of testing 77.30-50

We did see a break below 0.9114 but only to 0.9106… and then whipped back to the 0.9151 resistance. Nevertheless, I still feel that the downside is more at threat and look for losses to move back to the 0.9100-10 area, stage a mini correction and then extend losses to

EUR/USD Today’s support: – 1.3179 and 1.3148(main), where correction is possible. Break would give 1.3115, where correction also may be. Then follows 1.3084. Break of the latter would result in 1.3050. If a strong impulse, we would see 1.3038. Continuation will give 1.3002 and 1.2974.

AUD/USD during Asia drifted down to find support at 1.0780 with no real momentum to back below small bids which built up towards the end of the US session. It wasn’t until the European morning and a positive run of the majors and again some caught intraday shorts buying as

The USD/CAD respected the declining channel resistance the last couple of times, but since finding support at 0.9927, its momentum has gotten flat. The 1H chart shows the RSI reading stuck between 40 and 60, reflecting the neutral and consolidation momentum. Today, a sharp attempt to break the declining channel