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Action Insight: Market Overview
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Action Insight is the most popular section of the site, read by traders around the world. Our team of analysts work around the clock, analyzing the markets from technical and fundamental perspectives in providing the reports in this section to you.
- Market overviews covers major happenings in the markets as well as their impacts.
- Technical analysis of specific currency pair will be found in the technical outlook section. Covered pairs include EUR/USD, USD/JPY, GBP/USD, USD/CHF, USD/CAD, AUD/USD, EUR/JPY, EUR/CHF, EUR/GBP, GBP/JPY
- Special reports covers medium to longer term forecasts on exchange rates based on fundamentals, central bank meetings previews and reviews, plus any current issues that will have an impact on exchange rates.
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Market Overview |
Written by ActionForex.com |
May 23 13 12:40 GMT
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Yen and Swiss Franc rose sharply today on risk aversion. Nikkei plunged -1143 pts, or -7.32%, the sharpest fall in two years, as 10 year JGB yield jumped above 1% level for the first time in a year. Tokyo stock exchange has temporarily suspended bond futures trading due to excess volatility. While Fed Bernanke and China data were blamed for the wild moves, it's believed that disappointment over BoJ Kuroda's failure to announce specific measures to curb rising long term rates was the main cause. Markets stabilized somewhat after BoJ was forced to pump JPY 2.1T into the economy to prevent a surge in interest rates triggered by selloff in the JGB. Yen crosses have topped in near term due to today's selloff but there is no change in the overall bullish outlook. We'd expect some sideway consolidations in yen crosses ahead.
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Market Overview |
Written by ActionForex.com |
May 23 13 08:28 GMT
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JPY: Dollar reversed yesterday's rise on massive risk aversion due to selloff in equities, bids at 102.65-70, 102.25-35 were filled and stops below 102.00,101.80 and even 101.50 were triggered. At the moment, sell orders are lined up at 102.00-10, 102.40-60 region and also at 102.75, more sell orders are tipped further out at 103.00 and in very good size at 103.50-60 with stops building up above 103.75-80. On the downside, bids are still seen at 101.30-40 with more stops expected below 101.30, more buying interest is likely to emerge around 101.00, 100.80 and further out at 100.50, combination of bids and stops is reported at 100.00-10. Option expires today include: 101.00, 101.50, 102.30, 102.50 and 103.30.
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Market Overview |
Written by ActionForex.com |
May 23 13 05:16 GMT
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Markets were rocked by speculations on whether Fed would taper the stimulus program early. DOW jumped to record high of 15542 followed Bernanke's testimony, which suggested that Fed is not near to scaling back the open-ended asset purchase. However, stocks reversed and dropped sharply to close down -80 pts. FOMC minutes which noted a number of policy makers were willing to taper the bond purchase as early as in June is economic data shows "evidence of sufficiently strong and sustained growth." Asian markets followed and was further weighed down by weak Chinese manufacturing data. Overall, dollar remains generally firm, in particular against commodity currencies.
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Market Overview |
Written by ActionForex.com |
May 22 13 14:35 GMT
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EUR: The single currency continued to head north on dovish testimony from Bernanke, mixture of offers and stops at 1.2940-50 together with offers at 1.2960-70 and 1.2990 were tripped, some offers are still seen at 1.3000 with stops building above there and 1.3015-20 and also above 1.3030. On the downside, bids are raised to 1.2940-50 and 1.2920 with stops now placed below 1.2890-00, more buying interest is located at 1.2840-50, stops are expected below 1.2830-35 and 1.2790-00.
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Market Overview |
Written by ActionForex.com |
May 22 13 12:45 GMT
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Dollar spiked against euro, with EUR/USD just missing 1.3 psychological level in early US session. In his testimony to the Joint Economic Committee of Congress, Fed chairman Bernanke warned that "premature tightening of monetary policy could lead interest rates to rise temporarily but would also carry a substantial risk of slowing or ending the economic recovery and causing inflation to fall further." Meanwhile, regarding a "recalibration of the pace of its purchases", FOMC will "continue to assess the degree of progress made toward its objectives in light of incoming information." The comments suggested that Fed might not taper the open-ended asset purchase any time soon. As least it would happen in June as some speculated. DOW jumped to new record high above 15550 in response to the news. Dollar spiked lower but quickly recovered. Overall, we don't expect the pressure on dollar to last. As noted before, strength in dollar was due to funds flowing back to US equities and we'd expect the trend to continue. In particular, with US stocks maintaining strong momentum.
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Market Overview |
Written by ActionForex.com |
May 22 13 08:09 GMT
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EUR: The single currency staged a strong rebound in NY yesterday and stops at 1.2905-15 were tripped, mixture of offers and stops at 1.2940-50 is now in focus, however, more selling interest is tipped at 1.2960-70 and further out at 1.2990-1.3000 with stops building above there and 1.3015-20. On the downside, bids are now seen at 1.2900 and also in good size at 1.2860 as well as 1.2840-50, some stops are placed below 1.2830-35, more buy orders are scattered at 1.2820 and 1.2800 with bigger stops expected below 1.2780-90, fresh buying interest is tipped at 1.2770-75 and 1.2750 (option barrier). Option expires today include: 1.2800 (large), 1.2850, 1.2900, 1.2925 (large), 1.3000, 1.3020, 1.3025 and 1.3050.
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Market Overview |
Written by ActionForex.com |
May 22 13 04:30 GMT
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Dollar is a touch weaker against euro as markets enter into an eventful day. Comments from Fed officials suggested that Fed could refrain from tapering the asset purchase for a while. St. Louis Fed Bullard noted that inflation is "pretty low" in US and he "can't envision a good case to be made for tapering" unless inflation is turning around. He noted that Fed should be willing and ready to change the pace of asset purchase but Fed is not there yet. New York Fed Dudley said he's still unsure whether Fed should reduce or raise the amount of asset purchases because of the uncertain economic outlook. And, there should be sufficient evidence on "prospect for substantial improvement in the labor market outlook" when Fed because to slow the pace. Main focus will turn to Chairman Bernanke's testimony before the Joint Economic Committee of Congress today. Also, Fed will release FOMC meeting minutes.
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Market Overview |
Written by ActionForex.com |
May 21 13 14:36 GMT
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GBP: The British pound tumbled again today in London on active cross-selling in sterling, bids at 1.5180-1.5200 were filled and stops below 1.5150 were tripped, some buy orders are still seen at 1.5100-10 with more stops tipped below 1.5090-95 and fresh demand from Middle East names should emerge around 1.4970-75 and 1.4950. On the upside, offers are now lowered to 1.5150-60 and also in good size at 1.5190-00 with stops now building up above 1.5225-30, 1.5265-70 and also 1.5285-90.
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Market Overview |
Written by ActionForex.com |
May 21 13 12:56 GMT
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Sterling dropped sharply today on the back of weaker than expected inflation data. Headline CPI moderated from 2.8% yoy to 2.4% yoy in April, comparing to consensus of 2.6% yoy. That's also the lowest number since last September. Core CPI also moderated more than expected to 2.0% yoy, down from 2.4% yoy and compared to expectation of 2.3% yoy. Note that PPI input dipped into negative territory at -0.1% yoy. PPI output rose 1.1% yoy while output core Rose 0.8% yoy. All were below market expectations. it's believed that the tamer than expected inflation readings would give more flexibility to incoming BoE governor Carney to expand policy stimulus. The more important event for Sterling would be tomorrow's BoE minutes which should review how votes on expanding the asset purchase program. GBP/USD dropped through last week's low to resume recent fall from 1.5606.
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Market Overview |
Written by ActionForex.com |
May 21 13 08:14 GMT
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EUR: The single currency edged higher above 1.2900 level in European opening, mixture of offers and stops at 1.2905-15 is now in focus but fresh offers from Asian sovereign names are tipped around 1.2925-35 and further out at 1.2950 as well as 1.2970, combination of offers and stops are expected at 1.2990-00 and further out at 1.3030-40. On the downside, bids are raised to 1.2860-65 and 1.2845, demand from Asian CBs remain from 1.2820 down to 1.2800 with some stops placed below 1.2780-90, more buying interest is tipped at 1.2770-75 and 1.2750 (option barrier) with more stops expected below 1.2740. Option expires today include: 1.2800, 1.2845, 1.2850 (large), 1.2900 and 1.2975.
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Market Overview |
Written by ActionForex.com |
May 21 13 04:14 GMT
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Dollar is a bit softer this week as it consolidates broadly. Chicago Fed Evans said Fed's policies are "working" and US economy "seems to be performing quite well". He's optimistic that unemployment will continue to go down. And Evans expects "self-sustaining growth" at "escape velocity" next year. Regarding the asset purchase program, he said that the asset values so far "looks relatively reasonable". And, he would like to see " a few more months of data" before adjusting the pace of the program. And would probably be at least 200k job growth per month through the summer. More Fed officials will speak today including St. Louis Fed Bullard and New York Fed Dudley. Main focus though, will be Chairman Bernanke's testimony on Wednesday on the economy before the Joint Economic Committee of Congress. The timing of Fed's tapering of the quantitative easing program will remain a focus of the markets.
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Market Overview |
Written by ActionForex.com |
May 20 13 14:41 GMT
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EUR: The single currency bounced to an intra-day high of 1.2878 in European morning and indicated selling interest at 1.2880 capped upside, offers remain from 1.2880 up to 1.2900 with some stops placed above 1.2900 but fresh offers are tipped around 1.2930 and further out at 1.2950, mixtures of offers and stops are expected at 1.2990-00 and further out at 1.3030-40. On the downside, decent demand from Asian CBs remain from 1.2820 down to 1.2800 with some stops placed below 1.2780-90, more buying interest from Asian sovereign names is tipped at 1.2770-75 and 1.2750 (option barrier) with more stops expected below 1.2740.
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Market Overview |
Written by Action Forex |
May 20 13 13:28 GMT
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Markets are relatively steady in thin holiday trading today. Yen recovered earlier today but there was no follow through buying so far. Dallas Fed Fisher said today that he saw the economy "picking up as they go through the year" and might even grow at rate above 2.5%. Regarding Fed's expect he preferred Fed to "dial back" the asset purchase rather that "stopping" as that would be "too violent for the market place". Meanwhile, he noted that Fed's QE program had made "rich people richer" but it's unsure whether it has done enough for "working men and women. Dollar pared back some of last week's gain and is possibly turning into consolidations. But overall, there is no change in the near term bullish outlook.
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Market Overview |
Written by ActionForex.com |
May 20 13 08:31 GMT
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EUR: The single currency finally recovered after resuming recent decline to as low as 1.2796 on Friday as traders covered their short positions, decent demand from Asian CBs are reported from 1.2820 down to 1.2800 with some stops placed below 1.2780-90, more buying interest from Asian sovereign names is tipped at 1.2770-75 and 1.2750 (option barrier) with more stops expected below 1.2740. On the upside, offers at 1.2850-60 were filled but sell interest is still seen from 1.2880 up to 1.2900 with some stops placed above 1.2900 but fresh offers are tipped around 1.2930 and further out at 1.2950, mixtures of offers and stops are expected at 1.2990-00 and further out at 1.3030-40. Option expires today include: 1.2750, 1.2800, 1.2825, 1.2840, 1.2850, 1.2860, 1.2900, 1.2930, 1.3060 and 1.3075.
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Market Overview |
Written by ActionForex.com |
May 20 13 05:12 GMT
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Yen rebounds in Asian session today after Japanese Economy Minister Akira Amari signaled his concern on recent depreciation of the currency. Amari noted that "excessive yen gains have be corrected a lot". And he warned that if yen extends losses "a lot", there will be "negative" effect on people's lives. He said it's the government's job to "minimize" that impact. Referring to recent rally in Nikkei and slump in JGB, Amari said that the government needs to "enhance the credibility of government bonds to prevent a rise in long-term yields." USD/JPY is held above 101.82 minor support so far in spite of today's dip and further rally is still in favor. However, EUR/JPY and GBP/JPY are both bounded in near term consolidations and show mild sign of weakness. And, we'd be cautious if deeper pull back in EUR/JPY and GBP/JPY would drag down USD/JPY.
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Market Overview |
Written by ActionForex.com |
May 18 13 13:11 GMT
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While there were some brief setback over the week, the trend in the financial markets were unchanged. Up trend in US equities continued with DOW making another record close at 15354.4 while S&P 500 also had another record lose at 1667.47. FTSE 100 made another five year high at 6723.06 while DAX also closed at another record high of 8389. Nikkei also closed above 15000 handle at 15138.2. US 30 year yield once dipped back to below 3.1 level but managed to close the week higher at 3.165%. 10 year yield moved in tandem and closed the week higher at 1.949%. One important development to note, though, was the sharp decline in gold. Gold traders seemed to be finally giving up which sent comex gold to close at 1358.3, comparing to prior two week's range at around 1450. Dollar index extended recent rally to close at 84.20.
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Market Overview |
Written by ActionForex.com |
May 17 13 14:29 GMT
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EUR: The single currency dropped again on dollar's broad-based weakness in part due to the release of improved consumer sentiment data, bids at 1.2840-50 and 1.2805-10 together with stops below these levels were cleared, however, buying interest from Asian sovereign names is tipped at 1.2775 and 1.2750 (option barrier) with more stops expected below 1.2740. On the upside, offers are lowered to 1.2850 and also at 1.2885-90 with some stops placed above 1.2900 but fresh selling interest should emerge around 1.2930 and further out at 1.2950, mixtures of offers and stops are expected at 1.2990-00 and further out at 1.3030-40.
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Market Overview |
Written by ActionForex.com |
May 17 13 13:03 GMT
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Canadian dollar drops sharply in early US session after release of much weaker than expected inflation data. Headline CPI unexpectedly dropped -0.2% mom in April versus expectation of 0.2% mom rise. The year-over-year rate than dropped sharply to 0.4%, down from 1.0% and compared to expectation of 0.9%. That's well below BoC's target range of 1-3% and was the lowest level since October 2009. Core CPI also moderated more than expected to 1.1% yoy. The data basically indicated that there is no pressure for BoC to raise interest rates. USD/CAD jumped through an important near term resistance at 1.0293 which indicates that more upside would be see to next resistance level of 1.0341 and above.
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Market Overview |
Written by ActionForex.com |
May 17 13 08:45 GMT
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EUR: The single currency ran into renewed selling interest at 1.2930 and has retreated since late New York, however, demand from real money accounts, Asian and Middle East names are still noted at 1.2840-50 with stops building up below 1.2840 but some bids are reported further out at 1.2825, 1.2805-10 with more stops expected below next barrier at 1.2800, buying interest from Asian sovereign names is tipped at 1.2775 and 1.2750. On the upside, offers are lowered to 1.2880-85, 1.2900 and also in good size at 1.2930, more sizeable offers are located at 1.2950 and further out at 1.2980-00 area with stops building up above 1.3000, followed by mixture of offers and stops at 1.3030-40. Option expires today include: 1.2825, 1.2865, 1.2900, 1.2940, 1.2950, 1.3000, 1.3070 and 1.3200.
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Market Overview |
Written by ActionForex.com |
May 17 13 02:46 GMT
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Dollar's retreat overnight was rather shallow as the greenback recovered after comments from San Francisco Fed Williams. He noted that the labor market has clearly "improved since September" and Fed could reduce the pace of the open ended asset purchase "as early as this summer". Also, he noted that if "all goes as hoped", Fed would even end the program "some time late this year". Though he emphasized that it still need to "take further gain" to meet the "substantial improvement" test for ending the program. He projects US growth to be at around 2.5% in 2013 and 3.25% in 2014. And unemployment is expected to drop back to 7% by end of 2014, and then ease further to 6.5% in late 2015. He expected inflation to climb slowly but stay below Fed's target of 2% over the next few years.
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