Action Forex (ALL)

BoE Does Another £50bn QE - Buying Strategy Changed

Thu, 09 Feb 2012 06:39:33 PST

The Bank of England announced earlier today that it will continue with its quantitative easing programme. Specifically, the Bank of England will purchase £50bn Gilts over the next three months, i.e. monthly buying will decrease slightly from £18.7bn to £16.7bn. As the bond supply in H1 is slightly higher than

Mid-Day Report: Euro Mildly Firmer as Greek Austerity Deal Reached, ECB on Hold, BoE Added QE

Thu, 09 Feb 2012 06:31:14 PST

Euro is mildly firmer in early US session on report that Greek politicians have finally agreed on the austerity deal. The majority Socialist said that Prime Minister Papademos reached a tentative agreement with three coalition party leaders after a marathon meeting but no detail is released yet. This is confirmed

GBP/JPY Mid-Day Outlook

Thu, 09 Feb 2012 06:02:44 PST

Intraday bias in GBP/JPY remains neutral for the moment and more consolidations could be seen below 122.85 temporary top. But retreat is expected to be contained well above 119.58 support and bring another rise. Above 122.85 will extend the rally from 117.29 towards 100% projection of 117.29 to 122.04 from

EUR/JPY Mid-Day Outlook

Thu, 09 Feb 2012 05:59:28 PST

Intraday bias in EUR/JPY remains on the upside with 101.65 minor support intact. Current rebound from 97.03 is expected to continue towards 100% projection of 97.03 to 102.20 from 99.24 at 104.41. On the downside, below 101.65 minor support will turn bias neutral first. But near term outlook will remain cautiously bullish as long as 99.24 support holds.

EUR/USD Mid-Day Outlook

Thu, 09 Feb 2012 05:55:07 PST

Intraday bias in EUR/USD remains on the upside with 1.3214 minor support intact. Current rise from 1.2625 is expected to continue towards 61.8% retracement of 1.4246 to 1.2625 at 1.3627. On the downside, below 1.3214 minor support will turn bias neutral and bring consolidation. But break of 1.3028 support is

GBP/USD Mid-Day Outlook

Thu, 09 Feb 2012 05:52:23 PST

Intraday bias in GBP/USD remains neutral for the moment and more consolidation could be seen below 1.5928 temporary top. But near term outlook remains cautiously bullish as long as 1.5729 support holds. Above 1.5928 will target 1.6165 key cluster resistance (61.8% retracement of 1.6746 to 1.5234 at 1.6168). Break will

USD/CHF Mid-Day Outlook

Thu, 09 Feb 2012 05:50:11 PST

Intraday bias in USD/CHF remains on the downside with 0.9151 minor resistance intact. Current fall from 0.9594 is expected to continue to 0.9065 next. As noted before, considering bearish divergence condition in daily MACD, whole rebound from 0.7065 is possibly finished. Break of 0.9065 support will target 0.8567 key support

USD/JPY Mid-Day Outlook

Thu, 09 Feb 2012 05:48:17 PST

USD/JPY rises further to as high as 77.35 so far in early US session and remains firm. Intraday bias is on the upside for stronger rally. But still, note again that near term outlook remains bearish as long as 78.28 resistance holds and fall from 79.52 is in favor to

BOE's Cautious QE Path and Why GBP is Immune to it all...

Thu, 09 Feb 2012 05:23:25 PST

Today the BOE increased QE by GBP50bn and kept the benchmark interest rate at 0.5%, as expected. In his letter to the Chancellor BOE Governor Mervyn King said that the extra QE was necessary to ensure inflation doesn't undershoot its target. Even though King said that the growth picture had picked

FX Thoughts for the Day

Thu, 09 Feb 2012 05:20:48 PST

Dollar-Swiss failed to extend its downmove strongly below 0.9100 and has bounced back well from its low of 0.9090. It will have to be seen whether the pair gains upside momentum for further rise. The pair could find Resistance in 0.9160-80 region which could keep it pressured on the downside.

Greece is Close to a Deal

Thu, 09 Feb 2012 05:14:46 PST

Although negotiating through the night, Greek politicians did not reach an agreement on the required austerity measures. As they have now failed to meet about five deadlines, the Greeks will have to adhere to a very tight schedule if Greece is to avert a sovereign default on 20 March, when

BoE Expands QE by 50Bn Pounds Instead of 75Bn; GBP Rallies

Thu, 09 Feb 2012 05:04:24 PST

The Bank of England was expected to expand its Bond purchasing program, aka Quantitative Easing from £275bn to £325bn. Economists had forecast a larger expansion of £75bn to £350bn. The sterling market had stalled it’s recent strength coming into the BoE’s scheduled meeting.

Central Banks Front and Centre Today

Thu, 09 Feb 2012 04:27:33 PST

I sit here, hand firmly grasping my third cup of coffee for the morning as I desperately battle to stay awake in the midst of absolutely nothing happening in the market. Deadline, after misleading headline, after yet another deadline on Greece later and still no progress. Vols across the board are

Sterling Steady as BoE Left Rates Unchanged, Expand QE by GBP 50b

Thu, 09 Feb 2012 04:16:38 PST

Sterling remains steady after BoE did what markets expected, keeping rates unchanged at 0.5% and raised the size of the asset purchase program by GBP 50b to GBP 325b as "more likely than not that inflation would undershoot the 2% target in the medium term". In the accompanying statement, the

EURJPY - Risk Continues To Point To The 102.52 Level And Beyond

Thu, 09 Feb 2012 03:18:59 PST

EURJPY- With the cross holding above the 102.19 level and challenging the 102.52 level, its Dec 21’2011 low, further upside offensive looks to continue. Above the 102.52 level will call for a run at its Dec 12’2011 high at 103.86 and possibly higher towards its Dec 02’2011 high at 105.69.

European Market Update

Thu, 09 Feb 2012 03:15:36 PST

The USD remained softer against the European pairs in the session although off its worst levels. The Eurogroup meeting is scheduled to proceed later today after the European equity markets close but unlikely to resolve any issues on Greece.

Positive GDP Effect From UK Data, Trade Figures Deceive

Thu, 09 Feb 2012 03:02:35 PST

December data released this morning for UK Industrial and Manufacturing Production and for the Trade Balance suggest a small upward revision in GDP estimates may be warranted, but the headline trade data may mask a troubling development.

Waiting On The BoE And ECB

Thu, 09 Feb 2012 03:01:12 PST

Yesterday, FX traders spent much of the day waiting for news from Greece and today looks to be much the same. But while we wait, the general mood is risk-on. The equities continues to edge higher and US bond yields have reacted with a bearish run to the short term

USD/JPY Resumes Uptrend After Deep Adjustment

Thu, 09 Feb 2012 02:55:56 PST

On Wednesday Dollar/Yen traded within 50 pip range. The currency couple depreciated from 77.19 to 76.70 yesterday, matching the negative Interbank sentiment at bellow -3%, closing the day at 77.02. This morning the Dollar strengthened against the Yen, climbing to 77.24. On the 1 hour chart new upward channel is

U.K. Trade Deficit Narrows, Manufacturing And Industrial Production Improve In December

Thu, 09 Feb 2012 02:21:54 PST

After markets were mixed and fluctuating heavily, the United Kingdom released the trade balance and the industrial and manufacturing production figures for December, which added positivity to the market and supported the sentiment to improve slightly, yet cautiousness is still seen as markets are waiting for the European Central Bank