Forex Killer App. Blog

The BOC raised its policy rate by +25 bps, taking the overnight target rate to 1%, in September. While it’s the third consecutive hike since the central bank resumed the tightening cycle in June, financial conditions in Canada remained ‘exceptionally stimulative’ and is consistent with BOC’s 2% inflation target. The
Source:BoC Raises Policy Rate to 1%, [...]

The British pound finally broke below recent low at 1.5327, confirming early decline from 1.5999 top has resumed and further weakness to 1.5280 (100% projection of 1.5490 to 1.5345 measuring from 1.5425) and possibly towards 1.5210/15 (61.8% projection of 1.5999 to 1.5373 measuring from 1.5599) would be seen, however, near term oversold condition should limit [...]

U.S. Dollar Trading (USD) most pairs were range bound as US was way for Labor Day Holiday. The USD remained near post Nonfarm lows though as Asian and European stocks rallied. Looking ahead, August Employment Trend previously 97.
Source:US Holiday Keeps FX Markets Contained

Although cable has retreated after intra-day euro-led rally to 1.5492, break of previous minor resistance at 1.5419 is needed to signal intra-day top has been formed and bring weakness to 1.5370/80, however, reckon support at 1.5327 (yesterday’s low) would continue to hold and bring further choppy consolidation ahead of Friday’s
Source:Trade Idea Wrap-up: GBP/USD – Stand [...]

The dollar traded mixed on Friday, higher against the yen but lower versus the commodity currencies as risk appetite rose. Federal Reserve Chairman Ben Bernanke said the Fed is prepared to provide additional unconventional stimulus measures if needed. US GDP growth slowed less than expected in Q2 2010. The S&P
Source:Yen Falls as Risk Aversion Eases

Despite intra-day brief fall to 84.38, as the greenback has staged a strong rebound from there partly due to risk appetite, suggesting near term upside bias remains for the rise from 83.58 low to bring a stronger retracement of recent decline to 85.30/35 (61.8% Fibonacci retracement of 86.39-83.58) and possibly
Source:Trade Idea Wrap-up: USD/JPY – Stand [...]

No change in the longer term view in the index as the market is chopping near the middle of its range since the March 2008 low at 70.70. Continue to view the market as forming a large pennant/triangle over that time (tighter and tighter ranges), and with eventual declines
Source:$ Index, Not Much Risk

Politicians and central bankers may be squirming as they watch the yen trade at the key 85.00 level; yet neat price action over the last three weeks suggests we are merely getting used to these ultra-low levels rather than attempting to form a lasting base. This has also kept implied
Source:Weekly Technical Commentary

AUD is trading nervously ahead of tomorrow’s election. Key AUDUSD support has so far held. Is the consensus rising of an AUD-negative outcome? Meanwhile, CAD punished on low CPI data. The Australia general election is here tomorrow, with the consensus that Labor’s Gillard will likely edge out the Liberal opposition’s
Source:AUD Trades Nervously ahead of Election

Price action on USD/JPY (a 4-hour chart of which is shown) as of Thursday (8/19/2010) morning has once again reached down to the key 85.00 region lows after dropping today from near 86.00. This occurs within the context of a strong, accelerated overall downtrend extending from the June high. In
Source:Chart of the Day - USD/JPY