The strength of the Japanese yen loved by shoppers is hated by the Japanese administration, politicians and corporations. The head of Nissan recently said that yen strength is like a “1,000-pound gorilla” that scuppers our ability to sell cars abroad. After having embarked on several bouts of intervention, some in coordination with other central banks, to weaken the yen and repeatedly boosting the size of its asset-purchase program the Bank of Japan (BOJ) and Ministry of Finance (MOF) are taking a more subtle approach. Late in April the asset-purchase plan was increased again, by another … [Read more...]

Trading the News: Bank of England Inflation Report What’s Expected: Time of release: 05/16/2012 9:30 GMT, 5:30 EDT Primary Pair Impact: GBPUSD Expected: -- Previous: -- DailyFX Forecast: -- Why Is This Event Important: There’s speculation that the Bank of England will curb its growth forecast as the U.K. faces a double-dip recession, but the central bank may sound more hawkish this time around as the stickiness in price growth raises the risk for inflation. As BoE officials see the economy getting on a more sustainable path in the second-half of the year, we should see the group move … [Read more...]

Trading the News: Bank of England Inflation Report What’s Expected: Time of release: 05/16/2012 9:30 GMT, 5:30 EDT Primary Pair Impact: GBPUSD Expected: -- Previous: -- DailyFX Forecast: -- Why Is This Event Important: There’s speculation that the Bank of England will curb its growth forecast as the U.K. faces a double-dip recession, but the central bank may sound more hawkish this time around as the stickiness in price growth raises the risk for inflation. As BoE officials see the economy getting on a more sustainable path in the second-half of the year, we should see the group move … [Read more...]

The US Dollar (ticker: USDOLLAR) trades to fresh highs against the Euro and other forex counterparts, and high volatility expectations suggest the USD may continue to hit fresh highs (EURUSD lows). DailyFX Individual Currency Pair Conditions and Trading Strategy Bias DailyFX PLUS System Trading Signals –The US Dollar (ticker: USDOLLAR) has broken sharply higher against the Euro and other key counterparts, and the Dow Jones FXCM Dollar Index is currently challenging significant long-term trendline resistance. A simultaneous jump in forex options market volatility expectations suggests that … [Read more...]

The US Dollar (ticker: USDOLLAR) trades to fresh highs against the Euro and other forex counterparts, and high volatility expectations suggest the USD may continue to hit fresh highs (EURUSD lows). DailyFX Individual Currency Pair Conditions and Trading Strategy Bias DailyFX PLUS System Trading Signals –The US Dollar (ticker: USDOLLAR) has broken sharply higher against the Euro and other key counterparts, and the Dow Jones FXCM Dollar Index is currently challenging significant long-term trendline resistance. A simultaneous jump in forex options market volatility expectations suggests that … [Read more...]

* Cable has already provided over 1000 points in the last 3 months repeating the price action from 2011 * That price action has been 'Nasty' but is about to get even Nastier. * We remain short from 1.6260 and 1.6180 looking to reduce below 1.60 in order to resell what will appear to be a resumption of the uptrend! We remain bearish Cable for an acceleration of the reversal. The question is when. The answer as ever is provided mainly from the price action of last year today still being the equivalent of May 13th 2011. The decline from 1.63 to 1.6070 should be the first leg of the reversal. … [Read more...]

Talking Points Euro: Greece Fails To Form Government, ECB Conference In Focus British Pound: BoE To Preserve Easing Cycle, Lower Growth Forecast Euro: Greece Fails To Form Government, ECB Conference In Focus The Euro pared the overnightadvance to 1.2868 as Greece fails to form a coalition government, and the single currency should continue to give back the advance from earlier this year as the fundamental outlook for the region turns increasingly bleak. As European policy makers struggle to meet on common ground, the risks surrounding the new election mixed with fears of a Greek exit … [Read more...]

Gold and silver declined again yesterday and thus both metals were traded down in eight out of the ten business days in May (so far). The speculation around the next move in the EU following the shift in the political climate in Greece keeps the Euro weak and thus may also been among the factors to pull down commodities prices including precious metals prices. On today's agenda: Euro Area GDP for Q1 2012, German and Euro Area ZEW economic sentiment reports, U.S Core CPI and U.S. TIC Long Term Purchases. Gold decreased again on Monday by 1.45% to $1,561; silver also fell by 1.86% to $28.35. … [Read more...]

Trading the News: U.S. Consumer Price Index What’s Expected: Time of release: 05/15/2012 12:30 GMT, 8:30 EDT Primary Pair Impact: EURUSD Expected: 2.3% Previous: 2.7% DailyFX Forecast: 2.2% to 2.5% Why Is This Event Important: Consumer prices in the world’s largest economy are expected to expand 2.3% in April, which would mark the slowest pace of growth since February 2011, while the core rate of inflation is anticipated to hold steady at 2.3% for the second consecutive month. Indeed, we’re keeping a close eye on the stickiness in underling price growth as the economic recovery … [Read more...]

Trading the News: U.S. Consumer Price Index What’s Expected: Time of release: 05/15/2012 12:30 GMT, 8:30 EDT Primary Pair Impact: EURUSD Expected: 2.3% Previous: 2.7% DailyFX Forecast: 2.2% to 2.5% Why Is This Event Important: Consumer prices in the world’s largest economy are expected to expand 2.3% in April, which would mark the slowest pace of growth since February 2011, while the core rate of inflation is anticipated to hold steady at 2.3% for the second consecutive month. Indeed, we’re keeping a close eye on the stickiness in underling price growth as the economic recovery … [Read more...]