Forex Daily Review: EUR/JPY Bearish Gift

25 Oct 2012• Matti Williamson, FX and commodities analyst     

EUR/USD bulls' won the battle of 1.3000, soaking the heavy offers as the pair currently trades at 1.3005. The Japanese yen was heavily sold into Europe on reports that the BOJ will expand its asset purchase facility by

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Forex Daily Review: EUR/USD Intraday Bearish Correction

15 Oct 2012• Matti Williamson, FX and commodities analyst      Spain Bailout Request, Not Before October 21st

Forex traders dismissed the strong trade balance data from China over the weekend and sold EUR/USD through the Asian session as Spain disappointed the market by refusing to ask for a financial bailout. It is possible that Spain will wait for October 21st regional elections before requesting financial aid from the EU. Market talk suggests Angela Merkel wishes to include Spanish bailout funds with Greece's next tranche at the same time in a 'huge' financial package. Focus this week will be on the US earnings report where 80 companies traded in S&P500 are expected to publish their reports. Citigorup and Charles Schwap Corp will kick-start the US earnings for S&P500 companies in today's session.

Euro-spiked higher at the time of this writing on EU Rehn comments.

According to the news, EU Rehn confirmed that more time for Greece is being considered. It is important to highlight the market speculations from last Friday which indicated that Greece may receive a 2-year extension to meet its fiscal goals, which may be officially confirmed in this week's EU economic summit.

EUR/USD Technical Trading Strategy

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Forex Daily Review: What is the Bearish Target for GBP/AUD Correction?

08 Oct 2012• Matti Williamson, FX and commodities analyst      Non-Farm Payrolls Strategy

My technical analysis for CAD/JPY for the Non-Farm Payrolls (NFP) triggered its bullish target as the previous figure was revised higher, smothering the market with positive sentiment that weakened the Japanese yen (JPY) and US dollar (USD) against a basket of currencies. National holidays in Japan, US and Canada are likely to ensure trading volume will be extremely thin, which could inject a hefty amount of volatility as the Eurogroup meeting is expected to take place in Brussels.

GBP/AUD Technical Analysis

I am giving additional focus to GBP/AUD daily chart as there is a great risk for a corrective weakness to the strong gains made on Friday's session:

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Forex Daily Review: Mind the Bearish Gap in EUR/USD

28 Sep 2012• Matti Williamson, FX and commodities analyst      Spain Budget For 2013 Summary

The market is in love with Spain's budget for 2013. New fiscal group will now monitor Spain's budget, ministerial spending will be lowered by 8.9% (approx) and spending will be reduced by EUR 40 billion. Tax revenues are expected to rise by 3.8% to EUR 175.2 billion as Spain is convinced it will meet its 6.3%/GDP debt target by 2012. Spain is expected to be in recession in 2013 but hopes the new spending cuts will ensure it may be the last recession the Spanish region will see.

Egan Jones Downgrade Spain

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Forex Daily Review: China Initiated the Bearish Outlook for Gold, Crude Oil and AUD

My focus on AUD/USD is paying off. As expected, HSBC China Manufacturing PMI remained below 50.0, which indicates the economy is still contracting. A slowdown in China means it may purchase less goods from Australia, denting the AAA Australian sovereign rating. The Australian dollar (AUD) is expected to weaken against a basket of currencies on the fears that the Reserve Bank of Australia (RBA) will act and cut rates to counter the slowdown in China at the next monetary policy. The main trigger for Aussie-selling was a decline in China cola imports.

Gold

XAU/USD (gold) posted heavy losses as a result of the HSBC Manufacturing PMI. This was also expected as I outlined in my analysis. Despite the Fed's QE3, the weakness in gold and AUD are expected to continue throughout the upcoming months.

Brent Crude Oil

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