Forex Killer App. Blog

The main driver in FX remains overall investor sentiment, with stock market movements as the primary barometer of risk appetites. When stocks are up and sentiment is positive, the USD, the JPY and gold are typically sold, and when shares start falling, the USD, JPY and gold are all bought….
Source:This Week's Market Outlook

The greenback edged up higher against the majors amid heightened risk aversion, pushing the euro beneath the 1.28-level. Data from the US pointed toward further deterioration in fundamentals, suggesting the recession continues to worsen.
Source:US GDP Contracts by Most Since 1982

The forex markets are dominated by risk aversion and Euro selling in the past 24 hours. Yen crosses are mostly higher as Nikkei dropped more than -3% following -2.7% decline in DOW yesterday. Note that DOW has already tested mentioned 8367 resistance earlier this week and is now facing tough…
Source:Daily Report: Dollar and Yen Climbs [...]

Dollar maintains post FOMC strength and is lifted by news that Democrats controlled US House passed Obama’s $819b stimulus package with getting any votes from Republicans. The Japanese yen strengthens mildly too even though Asian stocks followed rally in US equities overnight. “Higher” yielders are leading the top movers chart…
Source:Daily Report: Dollar Extends Post FOMC [...]

German December import price inflation declined 4.0% m/m, which brought the annual rate down to -5.1% y/y from -1.3% y/y in November. This was much lower than our even our lower than consensus forecast for a reading of -3.2% m/m and a result of the combination of lower energy prices…
Source:German Import Prices Fall More than [...]

The main economic release today will be the German Ifo indicator due at 10:00 CET. Following the surprise increase in Euroland PMI data last week, the market will be looking for a confirmation of signs that the dra-matic economic slowdown is ebbing. In line with consensus, we expect the business…
Source:Today's Key Points

As EUR maintained its decline off the 1.4719 level the past week cutting through its Nov 25′08 high at 1.3081 and testing a low of 1.2766 on Friday, a convincing break and hold below its key support at the 1.2848 level, its Dec 04′08 high is now required to open…
Source:Weekly Technical Strategist

Risk trends have been driving moves in the forex markets, and this coming week shouldn’t be any different. The Australian dollar and New Zealand dollar both face heavy event risk from the release of Australian CPI and an expected rate cut by the RBNZ. Meanwhile, the Federal Reserve is anticipated…
Source:Forex Traders May See Shift in [...]

The Pound felt the pressure in the wake of its GDP release, falling to a 23-year low against the greenback. The pair slid 400 pips from its high to start the global session around 1.30 until it hit support at 1.35 in the late European session. That extends the losses…
Source:Week Ends with Falling Pound as [...]

The market will have to make a critical decision on the primary fundamental function of the US dollar within the next few weeks; and the ultimate verdict could finally put the world’s reserve currency back on pace. Bringing the greenback one giant step closer to a definable trend in the…
Source:US Dollar Trend Hangs On The [...]