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10 Dec 2014
Recap: Dollar hangover but it shows force
FXStreet (San Francisco) - It was one of those days. The US Dollar was the weak sister in the morning but it seems that Master Yoda told the Greenback at lunch time: May the Force be with you. And the USD rose! The other story of the day was the Yen strengthening.
The Japanese Yen rose against its major competitors and even was the top winner of the day against the Australian Dollar and the American Dollar. It seems that risk aversion plus profit taking pushed the nippon currency.
"There was no clear catalyst for the pair decline, yet stocks behavior has encouraged early profit taking and later recovery, affirms Valeria Bednarik from FXStreet. Technically, "the pair’s strong recovery keeps the dominant bullish trend alive, and the 1 hour chart shows price trying to regain the 200 SMA around 119.50 and indicators recovering from extreme oversold levels, still below their midlines."
The US Dollar traded on the defensive on Tuesday as the Greenback operated in a corrective phase against its major competitors. Investors were closing positions before year-end so that rebalancing was taking place shortly earlier than previous months.
However, stocks were leading the day and its spectacular comeback fueled Dollar to recover ground. Yet negative in the day, the Greenback closed the day off lows.
Investors were digesting fears about global economy since oil dropped to 62.20 before rebounding to 63.80; Chinese Stocks market suffered its worst day in 5 years, while the Greek political turmoil pressured sentiment to the downside.
On the day, top winners were USD/RUB (+1.13% to 54.00), EUR/USD (+0.44% to 1.2369) and EUR/GBP (+0.36% to 0.7896). Laggards were AUD/JPY (-0.87% to 99.19), USD/JPY (-0.85% to 119.64) and the USD/ZAR (-0.72% to 11.450).
The Dow Jones declined 0.29% to 17,801.20; the S&P 500 closed 0.02% negative to 2,059.82; while the Nasdaq Composite advanced 0.54% to 4,766.46. Treasurys rose on the day with the 30-year bond up 0.48% and the 10-yr: +0.32%. Crude oil jumped 1.07% to $63.73 while the Gold rose 2.91% to $1,229.60.
Key data
US Oct wholesale trade sales +0.2% vs +0.1% exp
US IBD/TIPP economic optimism 48.4 vs 47.0 exp
October 2014 US JOLTS report 4.834m vs 4.790m exp
http://www.fxstreet.com/news/forex-news/article.aspx?storyid=184d0ccd-d4e9-444d-a52b-bb2b520812fa
United Kingdom NIESR GDP Estimate (3M): 0.7% (November)
US stocks fight back and close at highs of the day but mixed
The Japanese Yen rose against its major competitors and even was the top winner of the day against the Australian Dollar and the American Dollar. It seems that risk aversion plus profit taking pushed the nippon currency.
"There was no clear catalyst for the pair decline, yet stocks behavior has encouraged early profit taking and later recovery, affirms Valeria Bednarik from FXStreet. Technically, "the pair’s strong recovery keeps the dominant bullish trend alive, and the 1 hour chart shows price trying to regain the 200 SMA around 119.50 and indicators recovering from extreme oversold levels, still below their midlines."
The US Dollar traded on the defensive on Tuesday as the Greenback operated in a corrective phase against its major competitors. Investors were closing positions before year-end so that rebalancing was taking place shortly earlier than previous months.
However, stocks were leading the day and its spectacular comeback fueled Dollar to recover ground. Yet negative in the day, the Greenback closed the day off lows.
Investors were digesting fears about global economy since oil dropped to 62.20 before rebounding to 63.80; Chinese Stocks market suffered its worst day in 5 years, while the Greek political turmoil pressured sentiment to the downside.
On the day, top winners were USD/RUB (+1.13% to 54.00), EUR/USD (+0.44% to 1.2369) and EUR/GBP (+0.36% to 0.7896). Laggards were AUD/JPY (-0.87% to 99.19), USD/JPY (-0.85% to 119.64) and the USD/ZAR (-0.72% to 11.450).
The Dow Jones declined 0.29% to 17,801.20; the S&P 500 closed 0.02% negative to 2,059.82; while the Nasdaq Composite advanced 0.54% to 4,766.46. Treasurys rose on the day with the 30-year bond up 0.48% and the 10-yr: +0.32%. Crude oil jumped 1.07% to $63.73 while the Gold rose 2.91% to $1,229.60.
Key data
US Oct wholesale trade sales +0.2% vs +0.1% exp
US IBD/TIPP economic optimism 48.4 vs 47.0 exp
October 2014 US JOLTS report 4.834m vs 4.790m exp
http://www.fxstreet.com/news/forex-news/article.aspx?storyid=184d0ccd-d4e9-444d-a52b-bb2b520812fa
United Kingdom NIESR GDP Estimate (3M): 0.7% (November)
US stocks fight back and close at highs of the day but mixed