Wed, Feb 22 2012, 17:33 GMT | FXstreet.com FXstreet.com (Córdoba) - The Dollar continues to trade inside a limited range against the Swissy, capped below the 0.9140 area and having set a daily low of 0.9095 in recent dealings, still unable to set a fresh direction as most crosses in the FX market.At time of writing, USD/CHF is quoting at the 0.9100 area, 0.2% below its opening price. Valeria Bednarik, chief analyst at FXstreet.com, notes that even though the pair holds a bearish tone, selling interest seems to be easing. "However, only a recovery above 0.9140 may favor gains in the pair, … [Read more...]

One of the weakest performers today was the GBP as Bank of England Meeting Minutes revealed that two members voted for a larger expansion of the bond purchase program than the £50 billion the bank agreed to in early February.This certainly went against the sentiment the market had for the GBP after last week’s Bank of England’s quarterly inflation report which showed the bank forecasting a higher rate for inflation in two years time than expected. At the time the GBP got a boost as market participants got the sense that the BOE may be hesitant to undertake more QE in the future.Today’s … [Read more...]

DJ FXCM Dollar Index Index Last High Low Daily Change (%) Daily Range (% of ATR) DJ-FXCM Dollar Index 9876.6 9896.68 9834.68 0.40 103.85% The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) is 0.40 percent higher from the open after moving 104 percent of its average true range, and the shift away from risk-taking behavior should prop up the reserve currency as renewed fears of a Greek default drags on trader sentiment. However, as the 30-minute relative strength index falls back from a high of 72, it looks as though there will be a short-term correction before … [Read more...]

Fundamental Headlines - Greek Bailout Wins Two Cheers from Wary Investors – Bloomberg - Obama Readies Plan to Cut Corporate Tax Rate – Bloomberg - Iran Defiant as U.N. Nuclear Talks Fail – Reuters - Fitch Downgrades Greece – WSJ - Despite Pact, Unease Lingers for Greece – WSJ European Session Summary The move to risk-aversion continues, even as the EURUSD has steadied following the second Greek bailout yesterday. Indeed, higher yielding currencies and risk-correlated assets have continued to weaken this week, with the commodity currencies posting a second day of losses. Price action … [Read more...]

GBP/CHF The GBP/CHF has been trading sideways since finding resistance at 1.48. The trend prior to consolidation has been bullish from 1.1460 to 1.48. Part of the reason for this jump was the SNB stepping in to intervene, pressuring the CHF. In this bull-run, the market started to trade in a rising channel seen in the daily chart, starting in September 2011. It is now testing the rising trendline that extends back to September. Bullish Scenario: If the market bounces off this rising trendline, and pushes above the common resistance pivot established recently just below 1.46, the market opens … [Read more...]

S&P 500 (Mar 12) INTRADAY Review Yesterday our entry long in the S&P provided firm support for the S&P, up until the US cash market open, when the index tested the level before pushing towards our first profit target, 1366.00 which was the pivot level for the day. As the day wore on we did eventually break this level as the market pushed lower into the close. The main focus yesterday was of course the Greek deal and in many ways it seems as though the market was not quite sure what to do with the news. This morning we awaited Eurozone confidence data to help sustain the rally in … [Read more...]

Trading the News: Bank of England Minutes What’s Expected: Time of release: 02/22/2012 9:30 GMT, 4:30 EST Primary Pair Impact: GBPUSD Expected: -- Previous: -- DailyFX Forecast: -- Why Is This Event Important: The Bank of England Minutes may spur a bullish reaction in the British Pound as we expect the central bank to soften its dovish tone for monetary policy, and the Monetary Policy Committee may endorse a wait-and-see approach throughout 2012 as the economic recovery in the U.K. gradually gathers pace. As the BoE now sees a limited risk of undershooting the 2% target for inflation, we … [Read more...]

Talking Points Crude Oil Likely to Remain Well-Supported on Iran-Linked Tensions Gold, Silver Buoyed by Inflation Bets But US Dollar Gains May Weigh Copper Vulnerable as S&P 500 Futures Point Toward Risk Aversion Tensions between Western powers and Iran continue to push crude oil prices higher, with the WTI contract touching the highest since May 2011 yesterday. Scanning recent developments, the situation remains volatile. While Tehran has at least delayed (if not cancelled) planned military exercises in the Strait of Hormuz initially slated for this week, it is conducting another set of … [Read more...]

Headlines: Despite receiving news about a final approval of the Greek rescue package both regional forex and fixed-income markets were remarkably stable yesterday. Nevertheless the attention of CE and particularly Hungarian markets returns back to Brussels, while the topic is not Greece or any other country among PIIGS this time. According to EU sources the European Commission will recommend at its Wednesday meeting to have cohesion fund commitments to Hungary suspended as of 1 January 2013. Although the EC’s recommendation should not contain specific figures as to how large or what … [Read more...]

Wed, Feb 22 2012, 09:38 GMT | FXstreet.com FXstreet.com (Barcelona) - After climbing around the 200-day MA, at 0.9984, the USD/CAD didn’t resist to selling pressure and turned to red on the daily chart during the Asian session. Held at 0.9954 low, the pair has been rising back up consistently, at the same time as crude oil loses momentum.Asian growth (also with improving China’s manufacturing PMI) and increasing tensions with Iran are spurring the rise of crude oil prices, having traded above 106.00 today, at nine-month highs.Reports say that Iran didn’t accept IAE request to visit a … [Read more...]