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FxProUpdates

Eurozone inflation data unlikely to halt EURUSD trend

In response to yesterday’s Outlook question, the answer is yes and in some style.  The US not only recouped its growth losses for Q1 by showing Q2 growth was 4%, but the decline in Q1 was revised upwards.  Unsurprisingly, the dollar surged on the news sending all the major pairs lower and USDJPY spiked getting over 103.00 briefly. Overnight UK consumer confidence fell for the first time in six months which is keeping the lid on any GBPUSD bounce.  The dollar softened a little following the FOMC ...

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US GDP for Q2 erases Q1 decline

GDP for the US in Q2 jumped as high as 4%, far more than the expected 3% and has totally wiped out the surprise decline in Q1 which was originally reported to be -2.9% but has been revised up to -2.1%.  This compliments the good consumer confidence data yesterday and has led to further strength for the US dollar.  USDJPY was testing a month high around 102.20 level and has now smashed through that meanwhile EURUSD, GBPUSD and AUDUSD are all seeing a move to the downside.  The daily chart for ...

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Can US GDP recoup losses from Q1?

Dollar bulls were given yet another boost yesterday as the US revealed better than expected consumer confidence data and the dollar index hit a fresh five and a half month high during the session.  Without wanting to sound like a broken record, it will still be the currency to focus on today as we get a raft of economic data from across the pond with the major ones being ADP private payrolls, GDP and later the FOMC rate decision. Labour market data is key and will continue to be so, even the ...

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US consumer defies geopolitical tension

There were concerns that the consumer confidence figure release today was going to be knocked by the recent build up of geopolitical tensions in Ukraine and the Middle East, but this certainly wasn't the case.  Stock markets and risk assets continue to defy gravity and it looks like the US economy will have rebounded from its shock fall in GDP last month strongly - we will see tomorrow.  With the labour market continuing to improve it's little surprise to see a cheerier US consumer and the ...

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Sterling and euro continue to battle dollar strength

A lack of major economic releases yesterday meant for a slow day of trading but overnight the Yen has seen a little action as USDJPY hits a three week high just pushing up against the 102.00 level.  A surprise rise in unemployment to 3.7% and weaker retails sales in Japan gave traders an excuse to sell the Yen as they perceive the chances of further QE having increased, despite words form BOJ board member Koji Ishida giving away little in a speech overnight. Things should warm up a little from ...

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July is month of the dollar

As we enter the last few days of July we can safely say that it’s been the dollar recovery that’s been one of the outliers of the month.  The dollar index is up almost 2%, past June’s highs and closing in on the 2014 high and it’s the euro that’s felt the brunt of this dollar buying.  Looking at a daily chart of the euro the technical picture doesn’t look all that promising as the uptrend that commenced exactly two year ago looks to be breaking down.  Having said that some indicators are ...

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UK GDP in line

Sterling holding relatively steady after latest GDP data recorded 0.8% increase, in line with expectations. Cable 1.6990 after some initial weakness.

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EUR lower on weak IFO reading

The euro has reversed the initial early strength after weaker than expected Ifo data, which showed the headline reading fall to 108.0, from 109.7.  Both expectations and current conditions balances fell. EURUSD is currently down to 1.3450.

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Eyes on sterling

The break back below the 1.70 level on cable yesterday reflected the extent of the dollar recovery seen during July, but also the more balanced view being taken towards the possibility of higher UK rates this year.  Weaker than expected retail sales also put downward pressure on the UK currency early on during yesterday’s session.  The focus this morning will be GDP data in the UK, seen rising 0.8%in the first reading of Q2 data at 08:30 GMT. Firmer numbers could give sterling the required lift ...