At present, the currency has stalled just ahead of the psychological 1.99 threshold. Its only a matter of time before the dollar gets its second wind, presumably from North America. Promising Data Buoys Euro The 17-member single currency has not been immune to the dollars flight. Already this morning the EUR has endured its own wild ride as investors digested mixed French, German, and Eurozone manufacturing surveys. The EUR happened to test its daily low after the slowdown in the French private sector deepened this month and while their manufacturing activity dipped to a two-month low. However, Germany, the euros backbone, has attempted to come to the embattled currencys rescue.
Boosting forex inflows ‘key’ to supporting Indian rupee: Barclays
While the relationship between the US dollar and its Taper interest and the S&P 500 with its proclivities towards moral hazard remains my top concern, there are trade opportunities that don’t require a full-scale fundamental drive to play out. In today’s video, we discuss the fundamental contradiction between Japanese yen and New Zealand dollar setups; and why they can both play out in these markets. Find out what event risk can threaten the trade setups discussed in today’s video with the DailyFX Economic Calendar . Market conditions change, and our strategy should reflect those changes. We have coded the DailyFX-Plus strategies for Breakout, Range and Momentum to adapt to these market shifts. Sign up for Johns email distribution list, here .
Source: <a review href=’http://www.dailyfx.com/forex/video/daily_news_report/2013/08/23/Forex_USDJPY_and_EURNZD_Offer_Trades_for_Different_Market_Directions.html’ >http://www.dailyfx.com/forex/video/daily_news_report/2013/08/23/Forex_USDJPY_and_EURNZD_Offer_Trades_for_Different_Market_Directions.html
FOREX-Dollar rises to near 3-wk high vs yen, higher US bond yields support
The headline July CPI figure is expected to pick up to a 1.4 percent pace below target but a yearly high. British Pound: Will the 2Q GDP Update Catch the Markets Attention? UK markets were more staid then their main-land Europe counterparts Thursday. The 10-year gilt yield passed the session little changed while the FTSE 100s 0.9 percent advance was measurably tamer than the DAX, CAC40 and Euro Stoxx indexes. Given the empty news ticker and economic docket, the sterling had to fall back on its passive effort to recover the ground lost through the opening months of the year due to recession and QE speculation. However, BoE member Martin Weales remarks Wednesday that a QE-based program was still an option seems to have curbed that automatic drive.
Forex: Dollar Extends Rebound but Loses Momentum Before Key Breakouts
The dollar rose 0.3 percent to 98.98 yen and had touched an intraday high of 99.10 yen, it’s highest since Aug. 5. The dollar was testing resistance right around 99.00 yen, the 100-day moving average, and a focal point was whether it could manage to make a clear break above that hurdle. “Dollar/yen should continue to resolve topside as U.S. Treasury yields move gradually higher,” said Jeffrey Halley, FX trader for Saxo Capital Markets in Singapore.
According to the global financial services major, the two main concerns that have driven the rupee’s weakness in recent weeks expectations of Fed tapering and India’s ability to fund its current account and fiscal deficits will continue to hit sentiment. Currently, the key to support the rupee is boosting near-term forex inflows. This would help to arrest negative sentiment toward the rupee, reverse part of the recent bond outflows, and curb near-term rupee weakness, it said. “Issuance of forex-denominated bonds or a deposit scheme targeting nonresident Indians (NRIs) remain the most potent options, in our view,” Barclays said. These programmes could attract USD 15-20 billion of inflows relatively quickly and provide much needed breathing space for policymakers to address India’s long-term structural problems, it added. “Policymakers, however, still remain reluctant to introduce these schemes,” Barclays said.