ryuroden Posted August 8, 2012 Report Share Posted August 8, 2012 USD/JPY’s supported by rising US yields Everyone noticed that USD/JPY is supported by rising US yields, but will this become a trend and even if so, will it be able to ensure recovery of the pair? Both 2-year and 10-year US Treasury yields have reached 1-month maximum amid the improvement of the market’s risk appetite. As a result, the yield spread between US and Japanese debt has widened. Credit Agricole: “Two-year yields have jumped in recent days. As long as US yields move higher then of course USD/JPY will be under upward pressure. However, for bond yields to move higher you need to see some credible signs of U.S. recovery. But the lack of data in the coming days suggests it's not going to happen.†We’d also like to add that yen, on its part, will be supported by the repatriation flow. Yield spread between 2-year US and Japanese bonds. Source: Bloomberg Have a profitable trade with FBS! If you have any questions to our analysts, you're welcome to ask or comments for this article! Quote Breakeven Trading100% deposit return guarantee! Link to comment Share on other sites More sharing options...
ryuroden Posted August 8, 2012 Report Share Posted August 8, 2012 BOE Ñut growth and CPI forecasts As widely expected, the Bank of England cut its growth forecast and said inflation will be below its target in two years as the crisis in the euro area and the U.K. fiscal squeeze weigh on demand. The central bank sees annual GDP growth of about 2% in two years, compared with a projection in May of 2.5%. It sees CPI growth at about 1.6% by then, below its 2% goal. Other key points: Forecasts are based on $375 billion QE and a rate cut in Q2 2013 UK demand is expected to remain weak in the near-term Euro area crisis contiues to weigh on demand Strong sterling may hurt export growth Biggest threat to UK is a delay in solution to the Euro crisis Have a profitable trade with FBS! If you have any questions to our analysts, you're welcome to ask or comments for this article! Quote Breakeven Trading100% deposit return guarantee! Link to comment Share on other sites More sharing options...
ryuroden Posted August 8, 2012 Report Share Posted August 8, 2012 USD/CAD: bullish long-term bias (MIG Bank) Technical analysts at MIG bank note that the greenback keeps sliding to 0.9954 versus its Canadian counterpart. The specialists regard this level (support of the trend line connecting July 2011 lows and April 2012 minimums) as an important support saying that above this level the bulls will retain strength of pushing USD/CAD higher. If the pair fails to hold above 0.9954, it will slide to 0.9800. Below the latter, the outlook for USD/CAD will turn bearish. According to the bank, in the longer-term, the ‘falling wedge’ pattern is a bullish signal. Chart. Daily USD/CAD Have a profitable trade with FBS! If you have any questions to our analysts, you're welcome to ask or comments for this article! Quote Breakeven Trading100% deposit return guarantee! Link to comment Share on other sites More sharing options...
ryuroden Posted August 8, 2012 Report Share Posted August 8, 2012 BofA: US recovery is limping According to Bank of America, US manufacturing sector was resilient and has already reached the pre-crisis levels. However, 70% of US GDP is based on a service sector, which remains depressed. Specialists think this is the reason why the economy still remains weak and is extremely vulnerable to external shocks. Economists point out that last year the share of manufacturing in the economy increased, but it happened not because of exceptional boom in manufacturing, but because of an exceptionally slow recovery in services. The dynamics of the recovery of both sectors can be seen from the charts below. This revelation means that US economy faces more obstacles than one can see on the surface. Source: Bank of Amarica Merill Lynch Have a profitable trade with FBS! If you have any questions to our analysts, you're welcome to ask or comments for this article! Quote Breakeven Trading100% deposit return guarantee! Link to comment Share on other sites More sharing options...
ryuroden Posted August 8, 2012 Report Share Posted August 8, 2012 Standard Chartered: BOJ will increase APP Analysts at Standard Chartered believe that USD/JPY will stick to the current levels. On the downside USD/JPY will be supported by the risk of the BOJ intervention. On the upside, its advance will be limited by the expectations of more QE from the Fed. The specialists expect the pair to close Q3 (September) at 79.00 and then to strengthen to finish 2012 at 82.00. Standard Chartered thinks that the Bank of Japan will increase APP (Asset Purchase Program) target by another 5-10 trillion yen tomorrow. As the reasons the specialists cite Japan’s economic growth which is losing momentum, deflationary pressure, strong national currency, expectations of stimulus in the US and Europe. If it happens, markets will be surprised and yen will weaken, though only in the short term. According to Standard Chartered, Japanese economy will add 2.2% in 2012 and 2% in 2013, while inflation will remain benign at 0.2% in 2012 picking up slightly to 0.3% in 2013. The bank claims that in the longer-term, “the case for more sustained yen’s weakness is building: Japan's shift away from nuclear power adds to the negative terms-of-trade and current account outlook and the nation faces substantial sovereign debt risks of its own.†Have a profitable trade with FBS! If you have any questions to our analysts, you're welcome to ask or comments for this article! Quote Breakeven Trading100% deposit return guarantee! Link to comment Share on other sites More sharing options...
ryuroden Posted August 9, 2012 Report Share Posted August 9, 2012 August 9: forex news The MSCI Asia Pacific Index (MXAP) of stocks rose for a fourth consecutive day. AUD/USD opened a new 4-month high at $1.0612 after data showed Australian labor market is strong. The number of people employed rose in July by 14K vs. expected increase of 10K. The jobless rate fell from a revised 5.3% in June to 5.2% last month. However, Aussie’s gains were tempered on the news from China. China released a bunch of important data today: CPI dropped to a 30-month low, rising by 1.8% y/y in July (consensus: 1.7%; previous: 2.2%). PPI dropped by 2.9% (consensus: -2.5%; previous: -2.1%). According to economists, slowing Chinese inflation may offer room for further easing in Asia’s biggest economy, what will support AUD and NZD in the medium term. There are reasons to expect more loose policy in China indeed: the nation’s retail sales added only 13.1% in July (vs. consensus of +13.6%), while industrial production rose only by 9.2% (vs. consensus of +9.8%). NZD/USD declined to $0.8130 levels. The jobless rate increased to 6.8% from 6.7% in Q1, exceeding the median estimate for 6.5%. Employment fell by 0.1% vs. a forecasted 0.3% growth. According to specialists, negative data is likely to accelerate kiwi’s downward correction. The consensus opinion won: the Bank of Japan left its monetary policy unchanged (benchmark rate below 0.1%, asset-purchase fund at 45 trillion yen ($573 billion) and lending facility at 25 trillion yen). Japan’s machinery orders, an indicator of capital spending, rose 5.6% in June after slumping by 14.8% in May, though economists expected 11.1% gain. USD/JPY is trading to the upside fluctuating up and down on the H1 chart. The spread for 2-year notes increased to 18.4 yesterday, the highest level since July 5. The yield spread between 10-year US Treasuries over JGB widened to more than 2-month maximum. EUR/USD is capped by the 50-hour MA at $1.2385. Yesterday the pair tested the levels below support at $1.2340. On Wednesday Toronto-based DBRS Inc. cut credit ratings on Spain and Italy. Spanish 10-year yields rose to 6.87% yesterday. German industrial production declined by 0.9% in June from May, when it gained a revised 1.7%. Tomorrow watch for French data. Soft data in the euro area hinders further advance of the single currency. GBP/USD strengthens for a third consecutive day, while USD/CAD demonstrates a five-day drop, remaining below parity. Canada will release trade balance and housing market data later today. Also watch US data releases at 12:30 GMT. American trade deficit probably shrank in June as cheaper oil reduced the import bill and slower global growth led to reduced demand for American-made goods. According to the consensus forecast, the gap probably narrowed to $47.5 billion, the 4-month minimum, from $48.7 billion in May. Weekly jobless benefit claims are expected to edge up to 371K from 365K in the previous week. Have a profitable trade with FBS! If you have any questions to our analysts, you're welcome to ask or comments for this article! Quote Breakeven Trading100% deposit return guarantee! Link to comment Share on other sites More sharing options...
ryuroden Posted August 9, 2012 Report Share Posted August 9, 2012 Key options expiring today Market prices tend to move towards the strike price at the time large vanilla options (ordinary put and call options) expire. It happens (all things equal) as each side of the deal seeks to hedge its risk exposure. This action is most noticeable ahead of 10 a.m. New York time when the majority of options expire (2 p.m. GMT). Here are the key options expiring today: EUR/USD: $1.2250, $1.2280, $1.2295, $1.2300, $1.2305, $1.2310, $1.2315, $1.2400, $1.2500; GBP/USD $1.5600, $1.5650; USD/JPY: 78.00, 78.15, 79.10; AUD/USD: $1.0550; USD/CAD: 0.9975; EUR/JPY: 97.55, 97.75, 98.00; EUR/GBP: 0.7800, 0.7825, 0.7890, 0.7900. Have a profitable trade with FBS! If you have any questions to our analysts, you're welcome to ask or comments for this article! Quote Breakeven Trading100% deposit return guarantee! Link to comment Share on other sites More sharing options...
ryuroden Posted August 9, 2012 Report Share Posted August 9, 2012 EUR/GBP: trading comments EUR/GBP declines for a third consecutive day. The pair slid below 0.7900 after peaking at 0.7961 on Monday. We expect EUR/GBP to continue a long-term downtrend after a two-week upward correction. The inability to overcome the 50-day MA counts in favor of a downward movement. A break below 0.7845 (23.6% Fib. retracement of a June-July decline) will signal a slide back to 0.7753 (July 23 minimum). In a longer term key support lies in the 0.7694 area (2008 minimums). Have a profitable trade with FBS! If you have any questions to our analysts, you're welcome to ask or comments for this article! Quote Breakeven Trading100% deposit return guarantee! Link to comment Share on other sites More sharing options...
ryuroden Posted August 9, 2012 Report Share Posted August 9, 2012 EUR’s down on ECB Monthly Bulletin The ECB released it monthly Bulletin – report which explains the central bank’s monetary policy decision. Euro zone’s growth estimate was revised down to -0.3% (from -0.2% in Q2) in 2012, to +0.6% (from +1.0%) in 2013. 2012 HICP and long term inflation forecasts at 2.3% and 2.0%. The 2013 HICP was lowered from 1.8% to 1.7%, and inflation in 2014 is expected to end at 1.9%. EUR/USD is once again testing support at $1.2340. Support: $1.2290, $1.2240, $1.2130, $1.2040. Resistance: $1.2400, $1.2440, $1.2500. Chart. H1 EUR/USD Have a profitable trade with FBS! If you have any questions to our analysts, you're welcome to ask or comments for this article! Quote Breakeven Trading100% deposit return guarantee! Link to comment Share on other sites More sharing options...
ryuroden Posted August 9, 2012 Report Share Posted August 9, 2012 EUR: analysts are bearish Commerzbank: We suspect that the move higher has terminated ahead of the -month channel resistance at $1.2500. St. George Bank: It’s hard to see any upside for the euro at the moment. Economic data has been quite soft. There’s still a bit of uncertainty about what the ECB can do and will do in addressing the crisis. UBS: As euro short-covering had been completed, the currency is expected to stick to narrow ranges until fresh factors emerged. Mizuho: We’re looking for the euro to go to parity. It will take about a year, but we are heading in that direction. Have a profitable trade with FBS! If you have any questions to our analysts, you're welcome to ask or comments for this article! Quote Breakeven Trading100% deposit return guarantee! Link to comment Share on other sites More sharing options...
ryuroden Posted August 9, 2012 Report Share Posted August 9, 2012 RBC: reasons against carry trade Analysts at RBC recommend investors to stay away from the carry trade. Carry trade is buying high yielding currencies and selling low yielding ones. The specialists note that euro may seem a good funding currency now. However, they remind that interest rates are low in many countries, not just in the euro zone, and that limits the potential for a carry trade to be profitable. In addition, although volatility has declined recently, it doesn’t compensate the compression of yield spreads. RBC underlines that “the carry-to-risk ratio – a good barometer of the efficacy of carry as an investment strategy – is still far below its historical average.†If you want to try carry trades even after all these warnings, RBC advices to use for funding not euro, but… Canadian dollar! The proposed trade is longs on AUD/CAD. Chart. Daily AUD/CAD Quote Breakeven Trading100% deposit return guarantee! Link to comment Share on other sites More sharing options...
ryuroden Posted August 9, 2012 Report Share Posted August 9, 2012 AUD/USD: slowed growth AUD/USD remains close to the top of the upward channel. Today the pair opened a new high at $1.0612, but then once more slid below the strong $1.0600 level. The pair has been consolidating at current levels for four days. On the H4 chart we can see a bullish MACD divergence. However, we expect the bullish trend to continue until there is a clearer sign of a trend reversal. Next resistance lies at $1.0636 (March 19 maximum) and at $1.0670 (March 8 maximum). Support is seen at $1.0529 (August 8 minimum) and at $1.0475 (beginning of a downtrend). Chart. H4 AUD/USD Chart. Daily AUD/USD Have a profitable trade with FBS! If you have any questions to our analysts, you're welcome to ask or comments for this article! Quote Breakeven Trading100% deposit return guarantee! Link to comment Share on other sites More sharing options...
ryuroden Posted August 9, 2012 Report Share Posted August 9, 2012 USD/CHF: bulls vs. bears US dollar bulls don’t let USD/CHF reverse down despite the ‘head and shoulders’ pattern formed on the daily chart. The pair tested the levels below the 1-year support line, but recoiled up from the 50-day MA. At the same time, there’s resistance around 0.9800 (downtrend resistance from July maximums, 100-period MA on H4 chart). Don’t forget that 200-week MA at 1.0030 is looming above the pair – the last time pair traded above this line on a sustainable basis was in 2002. The main technical levels are marked on the chart. Chart. Daily USD/CHF Have a profitable trade with FBS! If you have any questions to our analysts, you're welcome to ask or comments for this article! Quote Breakeven Trading100% deposit return guarantee! Link to comment Share on other sites More sharing options...
ryuroden Posted August 10, 2012 Report Share Posted August 10, 2012 August 10: economic & forex news Friday began with discouraging Chinese trade balance data (trade surplus came at 25.1B in July vs. 35.1B expected) which dragged Asian markets lower. Aussie took a blow: AUD/USD slid from the 4-month maximum above $1.0600 to the levels around $1.0520. The RBA monetary policy statement was relatively hawkish: the central bank upgraded the nation’s growth forecast, but warned of stronger AUD hurting the economy. NZD/USD keeps descending from Monday’s maximum at $0.8220. EUR/USD is set for the weekly drop. During the Asian session it edged a bit lower and is now trading under $1.2300. Today in the euro area watch for German CPI (5:00 GMT), French industrial production (only a small gain is expected in June after a 1.9% slump in May) and French budget balance (6:45 GMT). No critical debt auctions are scheduled. Britain will release PPI figures at 08:30 GMT – the data may affect EUR/GBP. GBP/USD recoiled down from 100-day MA at $1.5685. Treasury 2-year note yields touched 0.28% yesterday, the highest since July 6. Spanish 10-year yield is little changed to the downside at 6.85%. Have a profitable trade with FBS! If you have any questions to our analysts, you're welcome to ask or comments for this article! Quote Breakeven Trading100% deposit return guarantee! Link to comment Share on other sites More sharing options...
ryuroden Posted August 10, 2012 Report Share Posted August 10, 2012 Key options expiring today Market prices tend to move towards the strike price at the time large vanilla options (ordinary put and call options) expire. It happens (all things equal) as each side of the deal seeks to hedge its risk exposure. This action is most noticeable ahead of 10 a.m. New York time when the majority of options expire (2 p.m. GMT). Here are the key options expiring today: EUR/USD: $1.2200, $1.2400, $1.2425, $1.2450; GBP/USD: $1.5825; USD/JPY: 77.50, 78.50, 79.00, 79.50, 80.00; AUD/USD: $1.0350, $1.0550; EUR/GBP: 0.7875. Have a profitable trade with FBS! If you have any questions to our analysts, you're welcome to ask or comments for this article! Quote Breakeven Trading100% deposit return guarantee! Link to comment Share on other sites More sharing options...
ryuroden Posted August 10, 2012 Report Share Posted August 10, 2012 AUD/USD fell on China's data AUD/USD slid from a four-month high at $1.0612 to $1.0520 levels on the back of the RBA statement and negative China’s trade balance data. Narrowed trade surplus of the second largest world economy revived talks of China’s "hard landing" and sapped demand for high-yielding assets. As can be seen from the daily chart, AUD/USD shifted to the upper half of the upward channel, existing since June. In a medium term we expect the bullish trend to continue. However, in a near term the pair has potential to drop to $1.0475 (April 27 maximum) and to $1.0445 (July 19 maximum) support levels. On the upside resistance lies at $1.0556 (March 27 maximum), $1.0612 and at $1.0636 (March 19 maximum). The pair repulsed from a resistance line, connecting July 2011 and February 2012 maximums. Chart. Daily AUD/USD Have a profitable trade with FBS! If you have any questions to our analysts, you're welcome to ask or comments for this article! Quote Breakeven Trading100% deposit return guarantee! Link to comment Share on other sites More sharing options...
ryuroden Posted August 10, 2012 Report Share Posted August 10, 2012 EUR/USD: technical update EUR/USD is now trading within a kind of uptrend which started to manifest itself from late July. The pair moved up with 1 or 2 strong pushes which came by the end of the week and then drifted lower. Among the fundamental drivers were Draghi’s promises (July 26) and good NFP (August 3). The pair has good support around $1.2260 (former downtrend resistance, close to the recent uptrend support line and 100-period MA on H4 chart). 50-period MA is getting ready to intersect the 200-period one bottom-up (H4) – bullish signal. The level itself ($1.2325) acts as resistance. There’s more of resistance at the daily chart (50-day MA at $1.2400). Also note that there may be quite many sell stops set below $1.2240. Analysts at Commerzbank think that the recent move higher was an ‘a-b-c’ correction (Elliott Wave Theory). In their view, if EUR/USD goes under $1.2214, it will slide to $1.2042 (July minimum) and then to $1.1876 (2010 minimum). Chart. H4 EUR/USD Have a profitable trade with FBS! If you have any questions to our analysts, you're welcome to ask or comments for this article! Quote Breakeven Trading100% deposit return guarantee! Link to comment Share on other sites More sharing options...
ryuroden Posted August 10, 2012 Report Share Posted August 10, 2012 JPMorgan: bears on NZD/CAD On Friday NZD/CAD dropped to 0.8030 levels, demonstrating a four-day decline. The cross broke below the 200-day MA and the uptrend line that connects the lows on May 23 and July 25. According to specialists at JPMorgan, after breaking these important support levels NZD/CAD may fall to 0.7981. Chart. Daily NZD/CAD Have a profitable trade with FBS! If you have any questions to our analysts, you're welcome to ask or comments for this article! Quote Breakeven Trading100% deposit return guarantee! Link to comment Share on other sites More sharing options...
ryuroden Posted August 10, 2012 Report Share Posted August 10, 2012 Commerzbank: bears on AUD/USD Commerzbank analysts expect AUD/USD to drop to $1.0300 levels (lower boundary of the upward channel and the 200-day MA) after the pair failed to fix above $1.0583 (78.6% Fib of a decline from February). Close above $1.0583 would open way to $1.0670 levels, though it is not expected. Chart. H4 AUD/USD Have a profitable trade with FBS! If you have any questions to our analysts, you're welcome to ask or comments for this article! Quote Breakeven Trading100% deposit return guarantee! Link to comment Share on other sites More sharing options...
ryuroden Posted August 10, 2012 Report Share Posted August 10, 2012 Goldman Sachs: EUR Olympics Well, it’s Friday, so here’s some entertaining stuff from Goldman. Image from markettraders.com In July Goldman Sachs outlined 8 major issues that would determine the fate of euro. Now the bank returned to these problems to assess the progress. The specialists measure the developments by awarding EUR Bull and EUR Bears with… Olympic medals! No medal is given in case the estimate hasn’t changed. 1. Spanish Bank Bailout – Silver for EUR Bears. 2. Stabilizing Growth in Greece and Italy – Bronze for EUR Bears. 3. Euro area Banking Union – Bronze for EUE Bulls. 4. Franco-German Vision for a Political/Fiscal Union – Silver for EUR Bulls (with some help from the ECB). 5. Continued Strong BBoP (broad basic balance of payments) Position – Bronze for EUR Bulls. 6. More Fiscal Tightening Outside the Euro area – No Medal. 7. Monetary Policy Differentials – No Medal. 8. A Notable Reduction in EUR Short Positions – No Medal. So, bulls (1 silver, 2 bronzes) outran the bears (1 silver, 1 bronze). According to Goldman, this calculation reflects euro’s dynamics: the currency firstly slid to $1.20 on rising Spanish yields and then started rebounding on the ECB’s comments. Analysts are still bullish on euro in the medium term (they entered long on August 02 at $1.2153 targeting $1.30 and stopping close below $1.18). The bank thinks that “the ECB’s proposal for a conditional SMP would gradually reduce the euro zone risk premium and confirm a temporary bottom in EUR/USD accordinglyâ€. Have a profitable trade with FBS! If you have any questions to our analysts, you're welcome to ask or comments for this article! Quote Breakeven Trading100% deposit return guarantee! Link to comment Share on other sites More sharing options...
ryuroden Posted August 10, 2012 Report Share Posted August 10, 2012 Noda sacrifices re-election chances for tax hike The upper house of Japanese parliament approved the increase of the nation’s sales tax. This will be the first sales tax increase since 1997. The change won’t be instantaneous: the tax will be raised to 8% in April 2014 and 10% in October 2015. Prime Minister Yoshihiko Noda has been struggling for about a year to make this piece of legislation pass. During this period, 50 anti-tax lawmakers quitted the ruling Democratic Party of Japan which now has only a slim majority and risks losing in the next election. The lawmakers agreed for the tax increase only in the last minute and to make the deal Noda had to promise the main opposition Liberal Democratic Party to dissolve the lower house “in the near term†in exchange of their support for bill. Photo from washingtonpost.com Also note that there’s one condition necessary for the hike to take place and this clause is… an “economic upturnâ€! The members of the LDP are good negotiators indeed. As it’s not specified what exactly is to be considered as an “upturnâ€, lawmakers have different interpretations. One thing is quite clear at this point. There will surely be more debates. The LDP will be calling for an early election and the parliament may get in a gridlock by/in September. Just when the nation has an immense debt problem to solve! Sales tax increase would help to improve the debt outlook in the longer term, but any tax hike it would be a burden for economy. Time to make a choice! Have a profitable trade with FBS! If you have any questions to our analysts, you're welcome to ask or comments for this article! Quote Breakeven Trading100% deposit return guarantee! Link to comment Share on other sites More sharing options...
ryuroden Posted August 10, 2012 Report Share Posted August 10, 2012 Nomura: Britain may part from EU According to analysts at Nomura, Japan's biggest bank, Great Britain may leave the European Union entirely or partly as soon as in autumn. As the euro zone’s crisis progresses, the region’s policymakers will have to take steps aimed at making the European integration closer. As a result, UK could lose its power to influence the regional policy and decide to drift from the continental Europe and even quit the European Union – in other words, commit BRIXIT (British Exit). Specialists don’t precise the consequences of discord between the EU and UK, but underline it is bound to raise both economic and political concerns on financial markets. Though analysts think it’s unlikely the UK will hold a referendum on BRIXIT under the current government, Britain’s “euro skeptic†politicians may start being more and more active and even push through a vote. Have a profitable trade with FBS! If you have any questions to our analysts, you're welcome to ask or comments for this article! Quote Breakeven Trading100% deposit return guarantee! Link to comment Share on other sites More sharing options...
ryuroden Posted August 10, 2012 Report Share Posted August 10, 2012 Morgan Stanley: buy EUR vs. GBP and AUD Specialists at Morgan Stanley recommend going short on EUR/GBP at 0.7850, targeting 0.8200 and with a stop at 0.7750. In their view, current downward trend formed because of the high demand for safe currencies. However, specialists expect the financial flows to reverse as ECB will aggressively support peripheral debt markets. Chart. Daily EUR/GBP Moreover, experts recommend buying EUR/AUD at 1.1450, targeting 1.3000 and with a stop at 1.1300 for the same reasons. Chart. Daily EUR/AUD Have a profitable trade with FBS! If you have any questions to our analysts, you're welcome to ask or comments for this article! Quote Breakeven Trading100% deposit return guarantee! Link to comment Share on other sites More sharing options...
ryuroden Posted August 13, 2012 Report Share Posted August 13, 2012 August 13: forex news According to the preliminary data, Japanese GDP added only 0.3% q/q in Q2 (cons.: +0.6%, prev.: +1.2%). Annualized economic growth declined from 5.5% in the first 3 months of the year to 1.4% last quarter. Weaker exports and consumer spending are probably to be blamed for this disappointment. USD/JPY is trading on the upside, though still below 78.30 after initial increase to 78.36. Asian stocks are exhibiting a mixed trend on Monday: some of the region’s markets opened in red, but regained a bit of lost ground as the session progressed. Investors are cautious due to the mounting evidence of economic slowdown, but still await fresh stimulus from the central banks of the United States, Europe and China. Aussie and kiwi are little changed. EUR/USD was supported in the $1.2260 area (former downtrend resistance, the recent uptrend support line and 100-period MA on H4 chart). However, demand for euro is limited ahead of German and French GDP figures released tomorrow – economists expect slowdown and contraction respectively. US dollar is likely to outperform amid such expectations. No major data releases are scheduled during the European session. Have a profitable trade with FBS! If you have any questions to our analysts, you're welcome to ask or comments for this article! Quote Breakeven Trading100% deposit return guarantee! Link to comment Share on other sites More sharing options...
ryuroden Posted August 13, 2012 Report Share Posted August 13, 2012 Key options expiring today Market prices tend to move towards the strike price at the time large vanilla options (ordinary put and call options) expire. It happens (all things equal) as each side of the deal seeks to hedge its risk exposure. This action is most noticeable ahead of 10 a.m. New York time when the majority of options expire (2 p.m. GMT). Here are the key options expiring today: EUR/USD: $1.2200, $1.2400; USD/JPY: 77.00, 78.00, 78.50, 78.70; AUD/USD: 1.0250; EUR/GBP: 0.7790; EUR/AUD 1.1600. Have a profitable trade with FBS! If you have any questions to our analysts, you're welcome to ask or comments for this article! Quote Breakeven Trading100% deposit return guarantee! Link to comment Share on other sites More sharing options...
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