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1.6288 -0.0158 (-0.96%)
21:43:06 (GMT)
Bid 1.6285
Ask 1.6290
Open 1.6425
High 1.6525
Low 1.6284

September 19, 2014| FX Empire Analyst - James Hyerczyk

Profit-taking Drives GBP/USD Lower after Independence Vote Rally

The initial reaction by investors after Scotland voted to remain in the U.K. sent the GBP/USD soaring, but the size of the rally encouraged profit-taking, erasing all of the earlier gains. The final tally showed 55% of Scottish voters rejected independence and 45% favored it. The sell-off in the British Pound amounted to a “buy the rumor, sell the fact” situation since many traders had already taken long positions since early last week in anticipation of a “no” vote. Once...
September 19, 2014| FX Empire Analyst - Barry Norman

Gold Heading To $1180.00

Commodities primarily metals and energy took a nosedive after the FOMC decision. Earlier in the week metals were supported by the massive stimulus program by the Peoples Bank of China. Asian equities trade on a mixed to positive note with Japanese Nikkei scaling higher as it currency tumbled to fresh multi-year lows against the USD. Elsewhere in the US and Europe, equities closed firmly in the green tracking continued set of optimism from FED and notwithstanding the subdued housing and...
September 19, 2014| FX Empire Analyst - Barry Norman

The GBP Recovers As Traders Move Forward After a YES Vote

The pound soared this morning after the Scottish vote was declared “No” for independence. The GBP added 76 points to trade at 1.6471 after rallying on Thursday as polls started to move in favor of the “No” vote. There was a mix of economic data over the week that was overshadowed by the Scottish referendum. Midweek, UK jobs data printed well above expectations, with unemployment dropping from 6.4% to 6.2% with an expectation of 6.3%. The claimant count printed at a...
September 18, 2014| FX Empire Analyst - James Hyerczyk

EUR/USD Weakens on Lower-than-Expected Euro Zone Bank Borrowing

Selling pressure continued to press the EUR/USD lower on Thursday. Sellers hit the Euro after the European Central Bank reported that Euro Zone banks borrowed 82.6 billion Euro ($106.9 billion) in four-year loans from its new facility aiming at spurring lending to businesses and boosting inflation from its current extremely low levels. The borrowing below 100 billion Euro suggests the new financial aid package may not be enough to stimulate borrowing or consumer spending in the Euro Zone.   The...
September 18, 2014| FX Empire Analyst - Barry Norman

Asian Markets Mixed As The Yen Hits Record After FOMC Press Conference

Wall Street saw some volatility following the release of the Federal Reserve's monetary policy announcement on Wednesday but managed to end the day modestly higher. Further, European markets rebounded Wednesday on expectations that the U.S. Federal Reserve may signal after a meeting later in the day that it will continue to keep interest rates low for a longer period. Asian shares were mixed on Thursday as slowing property prices in China offset relief over the U.S. Federal Reserve's accommodative policy...
September 17, 2014| FX Empire Analyst - James Hyerczyk

Fed Expected to Deliver Hawkish Statement

There has been little movement in the currency and commodity markets today ahead of the U.S. Federal Reserve monetary policy statement at 2:00 p.m. ET. Today, the language in the U.S. Federal Reserve’s monetary policy statement should give investors a better idea as to the timing of the central bank’s next rate increase. The Fed is already on track to end its quantitative easing (QE) program in October, but this is only the first step in the process of bringing...
September 16, 2014| FX Empire Analyst - James Hyerczyk

GBP/USD Falls on Drop in U.K. Inflation

A bearish U.K. inflation report pressured the GBP/USD on Tuesday. The lower-than-expected number may mean the Bank of England will have to leave interest rates unchanged for longer-than expected. According to the U.K.’s Office for National Statistics, inflation fell to 1.5% in August from 1.6%. Traders had expected the rate to remain steady. Since inflation is showing no signs of acceleration, the Bank of England may have bought more time before the next rate hike. Also on traders’ minds is...
September 16, 2014| FX Empire Analyst - Barry Norman

OECD Cuts Global Growth And Warns On The Eurozone

Asian stocks declined today, ahead of the start of a Federal Reserve policy meeting. Wall Street largely turned in a lackluster performance during trading on Monday, as traders looked ahead to the Federal Reserve's monetary policy announcement later this week. European markets closed slightly lower on Monday, with trade range-bound due to concerns over the upcoming U.S. Federal Reserve policy meeting and Scottish independence vote. The Federal Open Market Committee is expected to affirm the U.S. economy's positive performance on...
September 15, 2014| FX Empire Analyst - James Hyerczyk

U.S. Dollar Gains on Euro, British Pound Ahead of Fed Statement

The GBP/USD is under pressure on Monday as investors shifted their focus on a number of events this week. On Wednesday, September 17, the U.S. Federal Reserve Federal Open Market Committee is scheduled to release its latest monetary policy statement. Many investors feel that due to the strengthening U.S. economy, the central bank may tweak the language in its announcement to hint at a sooner-than-expected interest rate hike. British Pound traders are also expressing concern about the Thursday, September 18...
September 15, 2014| FX Empire Analyst - Barry Norman

Scottish Vote Could Spark Crisis In The UK

All the headlines are following the referendum vote for Scottish independence on coming on Thursday. The latest poll figures published Friday afternoon show the Yes and No’s tied in a dead heat. This has cause unbelievable problems and stress for the UK government. While the British government denies it is preparing contingency plans for the referendum outcome, signs of the concern attached to the vote grew over the weekend. Bank of England Governor Mark Carney said he will return early...
September 15, 2014| FX Empire Analyst - Barry Norman

This Will Be A Crazy Market Week – FOMC, Alibaba IPO, Scottish Independence

This is going to be one crazy week for the markets. Tuesday and Wednesday are the FOMC meetings with a decision and speech by Janet Yellen on Wednesday afternoon. No changes are expected in the current Federal Reserve plans but there is expected to be a change in the tone of Ms. Yellen’s presentation, as future interest rate increases are key. Although Ms. Yellen will not give any specifics, traders believe her words and a move from a dovish stance...
September 12, 2014| FX Empire Analyst - James Hyerczyk

Despite Short-Covering Rally, British Pound Traders Still Worried About Scotland’s Referendum Vote

The British Pound traded higher against the U.S. Dollar for a third day. The current upside momentum suggests the GBP/USD may be headed toward a 50% retracement price at 1.6347. The week started with a gap lower on the opening on Monday. This was triggered by aggressive selling pressure following a report over the week-end that the vote for Scottish independence was stronger than previously anticipated. The relentless selling pressure continued for two days before buyers came in to stop...
September 12, 2014| FX Empire Analyst - Barry Norman

US Dollar Continues To Rally

The US dollar remains the stellar market performer trading above the 84.50 level and remaining in the green this morning. The number of Americans filing new claims for unemployment benefits unexpectedly rose last week, but that probably does not signal a material shift in labour market conditions as claims remain near their pre-recession levels. Initial claims for state unemployment benefits increased 11,000 to a seasonally adjusted 315,000 for the week ended September 6, the highest level since late June, the...
September 11, 2014| FX Empire Analyst - James Hyerczyk

GBP/USD Gets Boost from Improving Economic Outlook

The GBP/USD continued to recover from the sell-off earlier in the week. The recent huge decline was related to a newspaper poll showing those in favor of Scottish independence gaining support going into the September 18 referendum vote. Current data suggests, however, that the pro-union campaign was in the lead. Also helping to boost prices were comments from Bank of England Governor Mark Carney earlier in the week. In a speech, Carney said the BoE was moving closer to raising...
September 11, 2014| FX Empire Analyst - Barry Norman

Asian Currency Markets See Action

Asian currency markets were active on Thursday morning with the decision from the Reserve Bank of New Zealand and Australian employment data. The Japanese yen continues to move near record lows. Asian markets are trading on a positive note today on the back of slow rise in inflation data of the Chinese economy. China’s consumer inflation eased to a four-month low in August while factory-gate prices extended their decline to 30 months, adding room for government stimulus to support the...
September 10, 2014| FX Empire Analyst - James Hyerczyk

Crude Oil Falls as EIA Boosts Production Estimates

October Crude Oil futures fell on Wednesday after the U.S. Energy Information Administration reported a drawdown in its weekly inventory report of only 0.9272M. Traders had priced in a decline of 1M for the week-ended September 5. Earlier this week, the EIA again lowered its 2014 price estimates for both WTI and Brent, due to weakening demand and near-record U.S. production. In its September Short-Term Energy Outlook, the EIA cut its forecast for WTI to $98.28 per barrel and Brent...
September 10, 2014| FX Empire Analyst - Barry Norman

The US Dollar Remains Positive Ahead of the Federal Reserve Upcoming Meeting

Wall Street eased on Tuesday, a day after the S&P 500's biggest drop in a month, as Treasury yields climbed and investors considered when the Federal Reserve would start raising interest rates. Asian indices were deep in the red on Wednesday after Wall Street closed lower overnight amid rising expectations that the Federal Reserve could raise interest rates sooner rather than later. The US dollar continued to hold on to its strength trading at 84.32. The highlight in the currency...
September 09, 2014| FX Empire Analyst - James Hyerczyk

British Pound Stabilizes After Carney Comments

The GBP/USD traded lower early in the session as the threat of Scottish independence continued to weigh on traders’ minds. The currency reached an 11-month low, but then recovered slightly after Bank of England Governor Mark Carney said that investors can expect the central bank to raise interest rates in the spring of 2015. With the vote for Scottish independence coming up on September 18, the GBP/USD is expected to remain volatile because a “yes” vote will probably lead to...
September 09, 2014| FX Empire Analyst - Barry Norman

The US Dollar Continues To Sail Up Stream

As promised the week began on a quite note that was except for a mixed Chinese trade balance report, which showed a climb in exports but a harsh decline in imports bringing into question the domestic recovery on the Chinese economy. Chinese markets are closed for the Autumn holiday festival so market action was muted. Wall Street broke records as the markets opened. The broad S&P 500 index is posting 41 new 52-week highs and two new lows; the Nasdaq...
September 08, 2014| FX Empire Analyst - James Hyerczyk

Shift in Scottish Independence Vote Drives GBP/USD Sharply Lower

The GBP/USD gapped lower on Monday to its lowest level in 10 months, after a week-end newspaper poll showed voters favoring Scottish independence moving ahead against the opposition. According to a poll conducted by YouGov, a survey released over the weekend showed 47% of the potential voters were in favor of an independent Scotland, while 45% said no. This survey marked the first time that the “yes” votes were ahead of the “no” votes. The campaign for independence is expected...
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