Euro on Defensive
European news today has been somewhat disappointing and this lead investors back into the dollar. The retail PMI fell below the 50 boom/bust level in Aug (49.7 vs 52.4 in July), while the EMU Sentiment Index came in at 101.8, as expected and a modest improvement over the 101.1 reading in July (was 101.3). Apparently [...]
Euro Bonds, Keep Currency On Defensive
The Euro zone continues to see pressure in the bond market, which in turn is creating a defensive Euro currency. Besides Greece (+54 basis points), Ireland 10-year bonds have been the second worst performer in the periphery this past week (+31 basis points) as markets focus on the ongoing costs of recapitalizing the Irish banking [...]
Euro Short Squeeze Turns Into A Rally
The main concept within the foreign exchange market remains the pressure on the US dollar. There are several forces at work and seem to reflect both short covering and new long position. The net speculative position in CME futures remains short euros and sterling. The euro’s net short position has been cut dramatically from a [...]
Cable to go on a losing streak
The Cable lost ground after the OECD recommended reductions in the budget deficit so that the central bank could keep interest rates low, which would make the Sterling less attractive, vis a vis the high yield currencies. It has already broken the Nov 12 level of 1.6570 in today’s session indicating bears are on the [...]
CAD Bounces back from monthly lows…
The pair is expected to look bearish in the coming week as the commodity market is heating up with crude flirting around $80/barrel, and having crossed it once already this week. CAD is near its highest level in over a week as investors are eagerly waiting for the employment report to see where the Canadian [...]
USDCHF Pair – A Bear’s Dream?
The USDCHF pair is looking like a bear’s dream with the RSI hovering around the oversold zone, currently valued at 33. The MFI is also suggesting a downward trend, since it was at 64 only 10 days ago, compared to 36 today. Technical’s suggest that there is much downside left until 0.992 (Stop Loss: 0.995) [...]
