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1.6598 0.0008 (0.05%)
21:43:26 (GMT)
Bid 1.6596
Ask 1.6600
Open 1.6575
High 1.6614
Low 1.6563

August 29, 2014| FX Empire Analyst - James Hyerczyk

EUR/USD Firms after Consumer Price Data Meets Expectations

The EUR/USD is trading slightly better today, but is still likely to post a lower close for the week. Although the catalyst behind the current seven week sell-off in the Euro has been the fear of falling inflation, today’s numbers showed a slight improvement in consumer prices in the Euro Region. According to the European Union’s statistic office, Euro Zone consumer prices rose 0.3 percent in August from a year earlier after a 0.4 percent increase in July. This number...
August 28, 2014| FX Empire Analyst - James Hyerczyk

Gold Up on Escalating Ukraine, Russia Tensions

December Comex Gold futures rose close to 1 percent on Thursday as tensions between Ukraine and Russia fueled speculative buying and triggered sell stops. Reports of fighting along the Ukraine-Russia border also helped to underpin the market. The news also triggered sell-offs in the U.S. and European stock markets. This encouraged investors to move money into gold after taking profits in the stock market. The next move in gold will be determined by whether the situation in Ukraine escalates, or...
August 27, 2014| FX Empire Analyst - James Hyerczyk

Month-end Position Squaring Reverses Euro

The EUR/USD posted a strong reversal from nearly its lowest level in a year after Germany’s finance minister said comments by European Central Bank President Mario Draghi calling for additional stimulus were “over-interpreted”. The Euro is still expected to move lower over the near-term, but today’s comments gave short-sellers an excuse to book profits and square positions before the end of the month. Earlier today, the GfKs gauge of German consumer confidence for September fell to the lower level since...
August 27, 2014| FX Empire Analyst - Barry Norman

US Consumers The Happiest Since 2007

The US dollar continues to shine trading this morning at 82.67 after comments from Janet Yellen last week and a slew of positive economic data. On Tuesday US consumer confidence hit a high not seen since 2007 before the financial crisis. The US Dollar Index gained around 0.1 percent yesterday on the back of optimistic durable goods orders and consumer confidence data from the country. However, sharp upside in the currency was capped due to upbeat market sentiments which led...
August 26, 2014| FX Empire Analyst - James Hyerczyk

Gold Surges on Speculative Buying, Short-Covering

 December Comex Gold prices surged after two days of consolidation that indicated selling pressure had dried up. The rally was the biggest gain for the market in almost three weeks. Oversold technical conditions and strong support near a two-month low also contributed to the strength. Fundamentally, position-squaring ahead of talks between Russian President Vladimir Putin and Ukrainian counterpart Petro Poroshenko also provided firepower for the rally. Interest in safe haven investments such as gold could continue to rise this week...
August 26, 2014| FX Empire Analyst - Barry Norman | Comments (2)

Forex Markets Uneventful

Asian markets are trading on a negative note today on the back of unfavorable services and home sales data from the US in yesterday’s trade indicating a slowdown in the world’s largest economy. Paying little attention to the new record set by the S&P 500 on Monday. The US Dollar gained around 0.3 percent yesterday on the back of weak market sentiments in early part of the trade which led to increase in demand for the low yielding currency. Further...
August 25, 2014| FX Empire Analyst - James Hyerczyk

Gold Traders Digesting Draghi Comments

December Comex Gold futures are trading slightly lower, but inside the trading ranges of the last two days. This chart pattern tends to indicate impending volatility. Technically, the market may be oversold after last week’s sharp sell-off. The chart pattern also indicates trader indecision. Confusion over the fundamentals may be triggering this. On one hand the strong U.S. Dollar should be putting pressure on gold, however, the gap lower in the Euro and the uncertainty over the Euro Zone economy...
August 25, 2014| FX Empire Analyst - Barry Norman

Central Bankers From Around The Globe Speak At Jackson Hole

Market news all last week focused on the US data ahead of the two marquee events in Jackson Hole with speeches from Janet Yellen and Mario Draghi. The news all week was the strength of the US dollar. The US dollar climbed to trade at 82.38 but touched a high of 82.51. The dollar rallied against the euro in the longest stretch in more than two years as data from housing to jobless claims signaled faster economic growth, bolstering speculation...
August 24, 2014| Cliff Wachtel

The Coming Week’s Top Market Movers, Lessons: EU’s Moment Of Truth Approaching?

Top market movers and lessons for the prior and coming week and beyond – special focus on existential decisions EU must soon face   Summary --Technical Outlook: European indexes diverge from those of US, Asia, reflecting Europe’s underperformance --Fundamental Outlook: They key drivers continue to dominate, Ukraine and weekly data playing secondary role as markets rally despite Ukraine and mixed data --Longer Term Fundamental Threats: EU existential threats demand existential decisions   The following is a partial summary of the...
August 21, 2014| FX Empire Analyst - James Hyerczyk | Comments (2)

Gold Prices Collapse Under Pressure of Rising U.S. Dollar

December Comex Gold traders continued to react to yesterday’s release of the somewhat hawkish Fed minutes on Thursday. The selling pressure was strong enough today to take out the recent bottom at $1281.00, changing the trend to down on the daily chart and setting up the market for further downside action. The rally in the stock market continued to attract more investors away from gold. In addition, the stronger U.S. Dollar dampened demand for gold by foreign investors. Thursday’s data...
August 21, 2014| FX Empire Analyst - Barry Norman

Chinese Data Disappoints Currency Traders

Chinese HSBC manufacturing PMI has been the dominating market driver this morning sending the Aussie and the kiwi down. All the Asian currencies are trading on a marginally negative note with the US dollar continuing the positive trend. US Dollar index is currently trading at 82.32 levels up by 0.11 percent. In terms of economic data there are no other major data to be released until the European session and we will see Germany and Euro area manufacturing and services...
August 20, 2014| FX Empire Analyst - James Hyerczyk

Friendly API Inventory Data Boosts Crude Oil Futures

October Crude Oil futures traded better today in reaction to yesterday’s reported drop in oil stocks after the close.  According to the American Petroleum Institute, crude oil inventory dropped 1.4 million barrels last week. The API also reported that gasoline supplies fell by 2.1 million barrels. Later today, the U.S. Energy Information Administration is set to release inventory figures for the week-ended August 15. Traders are pricing in a drop of 1.163 million barrels. The recent price action in crude...
August 20, 2014| FX Empire Analyst - Barry Norman

The US Dollar Beats Up On The Pound & Euro

Wall Street turned in another strong performance during trading on Tuesday, extending the upward trend seen over the past several sessions. The continued strength on Markets came following the release of two closely watched reports on consumer price inflation and new residential construction. European markets ended positive on Tuesday amid easing concerns about Ukraine and hopes the Bank of England will hold off on a widely-anticipated rate hike due to lower U.K. inflation in July. This morning Asian markets are...
August 19, 2014| FX Empire Analyst - James Hyerczyk

U.S. Housing Data Pressures EUR/USD, GBP/USD

The EUR/USD plunged to a new nine-month low after a report showed U.S. housing starts reached their highest level in eight months. The report was proof that the recovery in the U.S. economy is gaining traction. Today’s housing starts report showed a gain of 1.9M versus a forecast of 0.97M. Building permits rose to 1.5M. Traders were looking for 1.0M. Core CPI came in at 0.1%, below the 0.2% estimate. Core CPI excludes food and energy prices. In July month-to-month...
August 18, 2014| FX Empire Analyst - James Hyerczyk

GBP/USD Gaps Higher on Positive Carney Comments

The GBP/USD gapped higher on Monday after Bank of England Governor Mark Carney said an expectation of a recovery in wages may prompt BOE policymakers to increase interest rates. Carney’s comments over the week-end in a Times interview essentially said the central bank wouldn’t have to wait until real wages started growing substantially before implementing a rate hike. The exact quote traders reacted to was policymakers “don’t have to wait for the fact” to increase the historically low benchmark rate...
August 18, 2014| FX Empire Analyst - Barry Norman

UK & Eurozone Economic Recovery Diverging

Most currencies ended mixed against the US dollar after European and US sessions on Friday. The euro rose from lows near $1.3360 to around $1.3410, before ending US trade near $1.3395. This morning the euro eased by another 4 points to trade at $1.3398. The Australian dollar eased from highs near 0.9350 to trade at 0.9320 flat on Monday morning. And the Japanese yen rose from 102.70 yen per US dollar to 102.15, ending US trade near 102.34. The yen is...
August 15, 2014| FX Empire Analyst - James Hyerczyk

Gold Plunges on Softening Tensions in Iraq and Ukraine

December Comex Gold futures plunged on Friday as investors liquidated their positions after European stock markets posted their largest weekly gains in almost six-months. Another catalyst for the rally was talk of additional stimulus from the European Central Bank. Additional factors weighing on gold were a drop in demand from China and India as well as the easing of tensions in Iraq and Ukraine. October Crude Oil traded slightly higher on Friday, following a sharp drop in prices on Thursday...
August 14, 2014| FX Empire Analyst - James Hyerczyk

GBP/USD Declines to Low Not Seen Since Mid-April

The GBP/USD broke to its lowest level since mid-April as traders continued to react to signs that Bank of England policymakers were likely to push its first interest rate hike since 2007 well into 2015. The Sterling fell again on Thursday after Monetary Policy Committee member David Miles said the central bank could keep rates at record-low levels for “a bit longer yet.” This was in addition to yesterday’s comments from BOE Governor Mark Carney who said the U.K’s expansion...
August 13, 2014| FX Empire Analyst - James Hyerczyk

GBP/USD Plunges as BOE Cuts Wage Growth Forecast

The GBP/USD fell to its lowest level since May 28 after the Bank of England cut its forecast for wage growth. The Sterling felt further selling pressure when BOE Governor Mark Carney reiterated his stance that interest rates would only rise gradually and to a limited extent. The news encouraged speculators to continue to short aggressively while helping to change investor expectations for interest-rate increases. The news was strong enough to change money-market investor sentiment about the next rate hike...
August 12, 2014| FX Empire Analyst - James Hyerczyk

German ZEW Data Drives EUR/USD Toward Nine-Month Low

The EUR/USD broke to nearly a nine-month low on Tuesday, coming close to taking out last week’s low at 1.3332. Driving the selling pressure today was a weaker-than-expected gauge of German investor sentiment. Today, the ZEW reported that its monthly survey of German investors fell to 8.6 in August from 27.1 in July, its latest reading since December 2012. The dismal number largely reflects concerns over the European Union’s conflict with Russia over Ukraine and worries about the effects of...
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