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1.5659 0.0016 (0.10%)
4:40:17 (GMT)
Bid 1.5658
Ask 1.5659
Open 1.5653
High 1.5663
Low 1.5643

November 21, 2014| FX Empire Analyst - James Hyerczyk

Draghi Stimulus Comments Sink Euro

The EUR/USD plunged on Friday in the wake of bearish comments from European Central Bank President Mario Draghi. He triggered a sell-off when he said at a banking conference, “we will continue to meet our responsibility – we will do what we must to raise inflation and inflation expectations as fast as possible, as our price stability mandate requires of us.” His comments sent a strong signal to the market that the ECB was ready to implement quantitative easing which...
November 21, 2014| FX Empire Analyst - Barry Norman

Currency Round Up – Global Data

Although US data continued on a strong note on Thursday the US dollar traded lower by 0.1%. Upbeat market sentiments which led to decline in demand for the low yielding currency capped sharp upside in the DX. The currency touched an intra-day high of 88.01 and closed at 87.67 on Thursday. US Core Consumer Price Index (CPI) grew to 0.2 percent in October as against a rise of 0.1 percent in September. Unemployment Claims slipped marginally to 291,000 for the...
November 20, 2014| FX Empire Analyst - James Hyerczyk

Euro Tumbles Following Weak PMI Composite Data

The EUR/USD is trading weaker after Markit released data that showed the flash Euro Zone PMI Composite Output Index which follows data from both the manufacturing and services sectors, for November came in at 51.4, the lowest level in 15 months. The lack of follow-through to the upside following Wednesday’s rally indicates technical factors may also be at work since the 1.2599 high occurred inside a key retracement zone at 1.2564 to 1.2612. The GBP/USD is trading flat today. Yesterday’s...
November 19, 2014| FX Empire Analyst - James Hyerczyk

Forex, Commodity Markets Bracing for Fed Minutes

Today the Fed is going to release the minutes from its October meeting at 2:00 p.m. EST. Traders will be looking for clues in the minutes on the Federal Open Market Committee’s outlook on the health of the U.S. economy, the timing of an interest rate hike, and the central bank’s assessment of wage growth. Short-covering helped boost the GBP/USD today. The catalyst behind the move was the Bank of England’s latest meeting showing policy makers raised concerns that inflationary...
November 18, 2014| FX Empire Analyst - James Hyerczyk

GBP/USD Flat Ahead of Tomorrow’s BoE Minutes

The GBP/USD is trading flat after the release of a report showed the U.K. inflation rate stayed near a five-year low, adding to speculation the Bank of England will delay an interest rate hike. Trading volume is also down ahead of tomorrow’s release of the latest Bank of England minutes from the November meeting. According to the Office for National Statistics, U.K. Consumer prices rose 1.3 percent in October from a year ago, compared with 1.2 percent in the previous...
November 17, 2014| FX Empire Analyst - James Hyerczyk

EUR/USD Falls Ahead of Draghi Testimony

The EUR/USD is under pressure today after failing to hold on to early session strength. Position-squaring ahead of European Central Bank President Mario Draghi’s testimony before a European parliamentary committee in Brussels was the likely catalyst behind the weakness. Draghi and the other ECB members are under pressure to do something about the Euro Zone economy since previous attempts at stimulus have failed to gain traction. The ECB has cut interest rates and bought covered bonds and asset-back securities so...
November 14, 2014| FX Empire Analyst - James Hyerczyk | Comments (4)

Gold Prices Surge on Increased Demand

December Comex Gold futures traded weaker early in the session on reports of low demand from China. The report showed demand dropped 37% during the third quarter to 929.3 tons. The inability to break the market further despite a stronger dollar and stock market, however, triggered a strong short-covering rally, giving gold enough upside momentum to continue the rally into next week. Some of today’s buying was related to the news that ISIS is planning to mint its own gold-backed...
November 14, 2014| FX Empire Analyst - Barry Norman

German GDP and Eurozone Inflation Keep Traders On Edge

Asian currencies are trading on a negative note with respect to the dollar. The US dollar index continued to dominate global currencies in yesterday's trade after the jobless claims came in close to expectations. Dollar index is currently trading at 88.00 adding 17 points this morning. The euro and the pound are trading at 1.2455 down 21 points and 1.5678 off by 32 points respectively. Important economic data are to be released from Germany and Europe in today’s session. GDP...
November 12, 2014| FX Empire Analyst - James Hyerczyk

GBP/USD Weakens on BOE Inflation Forecast

The GBP/USD sold off on Wednesday after the Bank of England warned that inflation could drop below 1%. The market weakened after the BOE cut its growth forecasts and said inflation will slow further in the coming months. Based on these comments, it looks as if traders are pricing in a rate hike later rather than sooner. Friday’s weak U.S. Non-Farm Payrolls data continued to weigh on the dollar, giving the Euro a boost. Most of the support for the...
November 12, 2014| FX Empire Analyst - Barry Norman

Wednesday Morning’s Wake Up Call – AUD-JPY-NZD-EUR-GBP-USD

Looking closely at the recent flow to and from currencies and the US dollar traders can see that a similar cycle had played out during 1996-2000, when a firmer US Dollar and weaker Asian and EM growth made speculators shun hard assets like commodities and real estate and alternative currencies like gold. Currently, China along with host of other Asian and EM economies are weak and cannot shoulder another commodity reflation cycle. At the same time, a stronger US Dollars...
November 11, 2014| FX Empire Analyst - James Hyerczyk

Gold Weakens on Week Demand

December Comex Gold futures failed to follow-through to the upside for a second day following Friday’s spectacular short-covering rally. The stronger dollar and equity markets are primarily to blame for the lack of demand for the precious metal. The market is now down for the ninth day out of 10. A rising stock market, the threat of higher interest rates and the lack of any significant geopolitical events are likely to keep the pressure on prices. The only way to...
November 10, 2014| FX Empire Analyst - James Hyerczyk

U.S. Dollar Falls in Reaction to Friday’s Weak Jobs Report

The U.S. Dollar fell on Monday against the Euro and British Pound for a second day in reaction to Friday’s weak October U.S. Non-Farm Payrolls report failed to live up to expectations. Traders has priced in an increase of 229K new jobs but the economy only delivered 214K. This raised concerns about the timing of the Fed’s next interest rate hike. The U.S. Dollar may still be in a bull market, but the charts indicate it is ripe for a...
November 07, 2014| FX Empire Analyst - James Hyerczyk | Comments (3)

Dollar Tumbles from High after U.S. Payrolls Disappoint

The U.S. Dollar broke after the October U.S. Non-Farm Payrolls report showed the economy added fewer jobs than forecast. This raised concerns as to when the Fed would likely begin to increase interest rates. Since the jobs data showed softer-than-expected jobs data, there are some investors out there who believe the central bank is not going to get serious about increasing interest rates until there is recognizable surge in wage growth. The U.S. Non-Farm Payrolls report showed payrolls rose 214,000...
November 06, 2014| FX Empire Analyst - James Hyerczyk

Dovish Draghi Comments Sink EUR/USD

The EUR/USD plunged to a 26-month low after European Central Bank President Mario Draghi said the central bank would not hesitate to use unconventional measures, including quantitative easing to help revive the Euro Zone’s struggling economy. The ECB also left its refinancing rate unchanged at 0.05% after its monthly monetary policy meeting. Today’s weakness was fueled by Draghi, who said in his post-meeting press conference that the Euro Zone’s current level of asset purchases would grow the ECB’s balance sheet...
November 05, 2014| FX Empire Analyst - James Hyerczyk

Gold Falls Sharply as U.S. Elections Results Lead to Surge in Dollar

December Comex Gold futures tumbled to a new 4-year low on Wednesday, pushed lower by a stronger U.S. Dollar and concerns about more central bank stimulus hitting the market. Last week, the Bank of Japan announced a huge stimulus package designed to overcome deflation and boost economic growth. This followed a slightly hawkish U.S. Federal Reserve monetary policy statement that centered on the strong possibility of an interest rate hike in 2015 because of a strengthening labor market while dimming...
November 03, 2014| FX Empire Analyst - James Hyerczyk

GBP/USD Posts Modest Gain Following Higher Manufacturing Data

The GBP/USD rebounded from early session weakness to post a small gain for the day before settling into a sideways trade. The Sterling moved higher as data showed manufacturing growth in the U.K. unexpectedly accelerated last month. According to Markit Economics, U.K. manufacturing PMI climbed to 53.2 from a revised 51.5 in September. According to Bloomberg, economists were looking for a decline to 51.4. Later this week, U.K. construction and services output reports are expected to show gains. The Bank...
November 03, 2014| FX Empire Analyst - Barry Norman

Morgan Stanley Ups The Odds on ECB Action

All the markets are abuzz ahead of this week’s European Central Bank meeting. Just a week ago, the US Federal Reserve ended its 6 year bond buying program as the US economy improves. Just days later, to the surprise of global investors Bank of Japan Governor Kudora announced a massive new program to help jump start the Japanese economy. The Bank of Japan announced it will buy 80 trillion yen of government bonds each year, up from 60-70 trillion yen...
October 31, 2014| FX Empire Analyst - Barry Norman

The USD, the Euro, the Pound and the Yen Could Be Volatile In Today’s Session

The US dollar soared to trade at 86.30 gaining for a third session in Asia on Friday. The greenback is trading at 86.30 and is expected to continue to rally. The greenback reached a three-week high against its major counterparts as the U.S. economy expanded more than forecast in the third quarter to confirm the Federal Reserve’s decision Wednesday to end its bond-buying program. The upgraded assessment of the US economy helped send the dollar on its rally and continued to be supported...
October 30, 2014| FX Empire Analyst - James Hyerczyk

Crude Oil Continues to Consolidate

December Crude Oil futures are trading lower today after the market failed to follow-through to the upside, following yesterday’s higher close. Yesterday, the U.S. Energy Information Administration reported in its weekly petroleum status report that U.S. commercial crude inventories increased by 2.1 million barrels last week, maintaining a total U.S. commercial crude inventory to 379.7 million barrels. This puts crude oil inventory near the top of the five-year range for this time of the year. The 2.1 million barrel increase...
October 29, 2014| FX Empire Analyst - James Hyerczyk

Euro, Pound and Gold Flat Ahead of Fed Statement

The Euro, British Pound and gold are trading flat ahead of today’s Federal Open Market Committee announcement at 2:00 pm EDT. Many of the major players are on the sidelines not because of what the Fed may do, but because of what it may say. All traders and analysts agree that the central bank will announce the end of its quantitative easing program while leaving its benchmark interest rate unchanged. Traders and analysts aren’t sure, however, what the Fed will...
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