Forex trading headlines 25 February 2014
- EU Commission revises EZ GDP up
- EU’s Rehn sees EU economic recovery becoming more broad based
- EU’s Marco Buti says there’s risk of growth remaining stuck in low gear
- EU projected GDP still not satisfactory says Italy
- December 2013 Case Shiller house price index 0.8% vs 0.6% exp m/m
- December 2013 US FHFA house price index 208.3 vs 207.1 prior m/m
- Euro zone suffers from lack of demand says Moscovici
- February US Richmond Fed manufacturing index -6 vs +5 exp
- US February consumer confidence 78.1 vs 80.0 expected
- Fed’s Tarullo favors keeping option of using rates against bubbles Tarullo QE purchases have had positive impact
- Ukraine facing high probability of default says Russian minister
- ECB’s Nowotny sees no prospect of deflation
- ECB’s Reinesch sees no EU deflation risks
- Banks won’t change their behaviour over negative rates says Nowotny
- A lesson that traders and investors of any market should learn as MT Gox Bitcoin holder loses large
- Canada pleased with Obama remarks on Keystone
- Fed says bank stress test results will be released March 20
- JPM sees market revenue fall 15% ytd
- Italy’s Renzi cleans up in confidence votes
- IMF’s Lagarde says job growth must be priority in the years ahead
- Fed’s Dudley says significant work needed to bolster financial system
Another humdrum start to the session needed some inspiration and house prices wasn’t it. They came off the boil slightly and it’s a picture that’s forming alongside the lower trend in housing activity, one to keep an eye on for sure.
Consumer confidence was dealt a blow as it slid below expectations and the Richmond Fed manufacturing index didn’t help either. Initially the buck was sold as USD/JPY fell to 102 but then news of a possible Ukraine default as well as the Fed’s Tarullo jawboning hit the pound and euro with EUR/USD losing 50 pips in mere minutes. As we have seen frequently the market has it’s boundaries and support at yesterday’s lows of 1.3715 soaked up the fall and we were soon trading back from whence we came at 1.3760. We finish the session 21 pips off the bounce back at 1.3739.
USD/JPY found highlighted support and bids at the big figure but only mustered a 25 pip bounce.
All eyes were on the pound after the little sortee down to 1.6640 as we followed the euro as the M&A squad went looking for possible fix action. The seconds ticked down and the clock struck 4 but nothing happened. It was a minute or so passed when we started to see it get bid to 1.6685 from 1.6669 and another minute passed before we then popped to the high at 1.6727. Whether it was M&A action or not the move faded just as quick with 1.6700 falling only to become resistance for the rest of the session. We end it just under 50 pips from the highs with levels still intact.
Gold managed a break up from the tech levels at 1338 but faces further tech resistance from 1351 to 1369. Dips are shallow and the rub is definitely with the bulls.
Eamonn has clocked on now so I’ll leave you in his very capable hands and I wish you all good trading session.
