Risk Aversion Dominated Jan, More Upside in Dollar and Yen in Feb January turned out to be a month dominated by risk aversion as we've seen broad based selloff in yen crosses. Euro was hardest hit on concern in Greece's fiscal heath, with EUR/JPY down -6.45%. New Zealand dollar was secondly worst performer after disappointment inflation data and was down -6.39% in January. Even the relatively resistance AUD/JPY, which was supported by strong data from Australia, was down -4.61%. A couple of factors, including sovereign rating concerns in some countries in Eurozone, more tightening measures from China and US Obama's bank plans would continue to weigh on market sentiments going forward. Full Report Here... |
2010 Currency Outlook: JPY Narrowing of US-Japan yield gap and the 'laissez-faire' stance of the Japanese government were the main reasons accelerating Japanese yen's rally against the dollar in 2H09. 3-month LIBOR for USD-denominated loans has been trading been below that of yen-denominated loans since August 24 while USDJPY plummeted to as low as 84.82, a level never seen after 1995, in November. Not until a stronger-than-expected November employment report in the US which spurred speculations of an earlier (by June) Fed rate hike had the dollar rebounded against the yen. However, the yen remains strong compared with historical average. Full Report Here... |
EUR/USD Weekly Outlook EURUSD's decline extended further as expected and reached as low as 1.3861 last week. Initial bias remains on the downside this week and further fall should be seen to next key cluster support at 1.3737. On the upside, above 1.3989 minor resistance will turn intraday bias neutral and bring consolidations. But recovery is expected to be limited by 1.4193 resistance and bring fall resumption. Read more... All Technical Outlook Reports | Weekly Top Movers | Top 5 | Current | Last | Change
(Pips) | Change
(%) | | EURUSD | 1.3863 | 1.4137 | -274 | -1.98% | | AUDUSD | 0.8833 | 0.9004 | -171 | -1.94% | | USDCHF | 1.0605 | 1.0408 | +197 | +1.86% | | EURJPY | 125.14 | 126.97 | -183 | -1.46% | | AUDJPY | 79.73 | 80.86 | -113 | -1.42% | Currency Heat Map Weekly View | USD | EUR | JPY | GBP | CHF | CAD | AUD | | USD | | | | | | | | | EUR | | | | | | | | | JPY | | | | | | | | | GBP | | | | | | | | |
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