OctaFX | OctaFX Forex Broker
Open trading account

Forex: EUR/USD consolidates around 1.3335/40

The bloc currency is extending the congestion pattern delimited by 1.3315 and 1.3350 on Thursday, as safe havens inflows continues to prevail among traders.

Currency Analyst Christopher Vecchio at DailyFX has criticized the politicians’ inaction and lack of attitude towards these last GDP figures, kicking the can down the road towards the ECB as the unique saviour of the euro zone. “While this is a burden that they undertook by promising to do “whatever it takes” to save the Euro, it now means that calls for an interest rate cut are likely to increase in the coming week. Until there is further policy clarification from President Mario Draghi, there will be an inherent underlying dovish push against the Euro in this regard. This should at least counterbalance any upside afforded by the LTRO repayments coming in”, signalled the expert.

At the moment, the cross is down 0.87% at 1.3335 facing the next support at 1.3300 (psychological level) en route to 1.3265 (low Jan.23) and then 1.3251 (Lower Bollinger).
On the flip side, a break above 1.3442 (MA21d) would bring 1.3472 (MA10d) and finally 1.3520 (high Feb13).

Forex Flash: USD/CAD might squeeze back up to 1.0040/50 – TD Securities

Weak data reports overseas should not make much impact on the CAD, "with CAD/risk correlations dropping right off over the past few weeks (CAD/S&P 500 correlation on a rolling 22-day basis is more or less zero at the moment from +79% a month or so ago)", wrote TD Securities analysts, pointing to the importance of US-Canada debt yield spreads on the USD/CAD. "Short-term rate spreads remain an important driver of the CAD versus the USD, as we have highlighted in the recent past— especially as the risk correlation faded", said analyst Shaun Osborne and Greg Moore, observing notable narrowing short-term, undercutting the CAD, since the BoC’s more dovish rate message last month. "Longer-term spreads are moving against the CAD as well, however.  10-year US bond yields at 2.02% today are marginally above Canadian 10s for the first time since March 2012—another drag on the CAD", they continued.
Read more Previous

Forex Flash: Equity markets offer upside optionality in 2013 – Goldman Sachs

According to the Economics Research Team at Goldman Sachs, “While our best guess is that the search for yield will continue in 2013 and that spreads will probably continue to grind lower, our baseline forecasts show limited upside in the year ahead: low single-digit returns in the case of Investment Grade credit and high single-digit returns in the case of high yield credits.”
Read more Next
Start livechat