British Pound is currently in long positive trend from bottom at 1.5390. After good data about Public Sector Net Borrowing price made sharp upside move. Expectations were that the value of indicator will be 13.2B but value shows at 12.4B. This is much better than data about July -1.9B. As you can see on four-hour chart below price of the currency pair continues to move above 15 and 25 EMA which signals for continuing the trend. Today cable made new fresh high at 1.6307 after break of the previous top at 1.6274. If the price closes the week clear above 1.6300, this will bring further rise to 1.7043 in long term. Next target of the upside momentum in short term is set at 1.6450 first 1.6570 after that. On downside first support could be projected around 1.6160. In case of break next support would be around 1.6070. Crucial for whole bullish trend is 1.5910. Break and daily close below that level would change scenario in the currency pair for downside. In long term, price movements from 1.3503 are treated as consolidation pattern of the long term down trend from 2.1161. There isnt any change in this view. There are a lot of interpretations of the corrective movement from 1.3503 but before break of 1.5234 support more consolidation would continue.
Last week the British pound posted very decent gains against its U.S. counterpart, as market participants were expecting a new wave of quantitative easing to be announced by the Federal Reserve in its meeting, scheduled for Thursday. After struggling with the key 1.60 level for a while, the sterling finally broke the resistance and moved higher for the rest of the week. The currency was also helped by the positive economic data, which were released in the course of the week. First, the trade balance figures came in better than expected. Analysts were projecting the deficit on the current account to have contracted to 8.9B for the month of July from a reading of 10.1B for the previous relevant period. Instead, the trade deficit declined to 7.1B, scattering the bears in the pound and fueling another wave of buying. On Wednesday, we had the closely monitored claimant count change figures being announced. They also surprised on the upside. Economists were projecting the people claiming unemployment-related benefits to have risen by 100, but the Office for National Statistics report indicated that actually 15,000 people fewer filed for government benefits. The response to this positive development was so strong that it overshadowed the news that the U.K.s unemployment rate rose to 8.1% in July. On Thursday, the auction of 10-year gilts showed that the yields have risen on a month over month basis as investors preferred to put their money in higher-grossing assets such as stocks. The bid-to-cover ratio was also relatively low. These news, however, remained in the background as the spotlight was on the Federal Reserve statement, which was scheduled for later in the day. The U.S. central bank announced a new bond-buying program that surprised market participants with its aggressiveness. According to the new plan the Fed would have to buy $40 billion worth of mortgage backed securities and government bonds with longer maturities for as long as necessary for the employment in the worlds largest economy to start picking up again. After the news hit the wires traders sold the dollar and bought its major counterparts as they were expecting the new measures to have a dilutive effect on the U.S.
currency. The sterling finished the session around the highs and continued rising in the last day of the week. The GBP/USD closed at 1.6211 of Friday on a weaker note as it retracted from highs of 1.6257, which it touched earlier in the day. This week the pound is moving sideways, posting modest gains against the greenback. Yesterday we touched fresh new highs of 1.6274 for the month and we are now very close to the crucial 1.63 level, where the April rally ran out of steam. If we manage to break above the aforementioned level, we will move to the GBP/USDs highest rates since late August of 2011. For today, however, the pound will probably remain below its Monday highs as the inflation figures for the U.K. economy disappointed. Although the CPI on year over year basis came in line with expectations, the RPI dropped to 2.9% from a reading of 3.2% for the month of July. The core CPI and the HPI also slipped to 2.1% and 2.0%, respectively, from a reading of 2.3% for the previous relevant period.
Technically speaking, the resistance in the currency pair is provided by the 1.63 level, while support is provided by the 25-period moving average around 1.6192. Oscillators are moving around the upper bands of their respective ranges with the relative strength index at 65 and the stochastic at 61. The MACD has reached the highs of late August and is issuing sell signals, which might indicate that we will see a correction of some sort before we move to higher grounds. http://www.binaryoption.com/binary-options-trading-markets/binary-options-opinions/a-brief-look-at-binary-gbpusd-4.html
Binary Gold keeps increasing. The call options on the underlying instrument posted a huge advance during the trading session on Friday. It was partially favored by the depreciating U.S Dollar which is facing a selling pressure for now. This is the source of the upside potential in the precious metal. Binary traders betting on the given asset have plenty of opportunities to place many trades and earn nice cash.
The relationship between the greenback and the gold is inverse as usual for now. They are considered to be safe-heavens. In times of fear and uncertainty, they could move in tandem. The binary markets are not so far from the above-mentioned scenario. Thus, the binary traders should pay close attention to some change in the behavior between both instruments.
The value of binary gold could be boosted by a variety of factors. It could be purchased by investors shifting from low interest bearing government bonds that can not keep up with the rate of inflation. As an inflation hedge, it is about to leap when more money is printing by the Federal Reserve. The binary markets are witnessing this phase now.
The uncertainty about the future development of the global economy is pushing the price of gold much higher. This tendency is likely to continue. Binary traders should keep betting on the underlying instrument waiting for new yearly highs.
Potential short-term targets are $1730, followed by $1760.
The Aussie lost its upward momentum and moved lower all week long. After touching highs of 1.0617 last week the AUD/USD hovered around the tops for quite some time before finally reversing its upward trend. The week was not heavy on economic news, but still there were some important releases in the middle of the week. On Tuesday, the National Australia Bank (NAB) announced its business confidence figures for July. According to the survey, conducted by the NAB, respondents saw the local business conditions improving with the economic indicator coming at its highest level since May. By contrast, in the month of June, the survey indicated that the business conditions are worsening. At the same time, the new motor vehicle sales dropped by 0.8% on a month over month basis. This was their second consecutive month of declines. To make the matters worse, the June figure was revised on the downside from -0.6% to -1.0%. The AUD/USD slipped on the news after having pushed both below its 25-period and its 50-period moving averages in the previous session.
The Aussie finished the day slightly off of the lows of 1.0461, which we touched towards the end of the trading day. On Wednesday, more news hit the wires. First the Westpac consumer sentiment figures were released. According to the announced number the economic conditions were expected to worsen in the future by 2.5%. This was the first negative reading of the indicator since March and came after last month the same survey, conducted by the Westpac Banking Corporation, indicated that the business climate in Australia was expected to improve. Later in the day the wage price index for June was announced, coming at 1.0%. Analysts were expecting a more modest reading of 0.8%, which would have effectively shown that the price government and businesses pay for labor has grown at a slower rate in June than in May. Instead, the growth of wages proved to be stronger in June than in the previous relevant period. The AUD/USD rose on the news after bouncing off of the support level at 1.0449, where the intermediate lows of early August stand. After approaching the 25-period moving average, however, the currency pair lost its momentum and declined to close at 1.0478. Yesterday the MI inflation expectations were announced, revealing that consumers expect the price of goods and services to increase by 2.4%. The number was well below the 3.3% increase, which consumers expected prices to grow in the survey, conducted in June. The AUD/USD gained after the news were released, pushing above its 25-period moving average and stopping slightly below the 50-period moving average. The bounce in the Aussie, however, proved to be unsustainable as the IMF released a report today, in which it claimed that the Australian dollar is overvalued. Market participants sold the currency on the news, sending it to fresh new lows against its U.S. counterpart. The AUD/USD even tested the support at the 1.0400 level, but failed to break below it. Currently the Aussie is standing at 1.0423, but the downward pressure continues to be elevated. Oscillators are all trending lower with the relative strength index approaching the lower band of its range and the stochastic already in oversold territory. The MACD is moving below 0 and is issuing sell signals. Also, binary traders should have in mind that the Aussie seems to be entering in a head and shoulders formation, which might be seen as a trend reversal indication.
The euro fell on Monday , hitting a record low against the Australian dollar, on worries the European Central Bank may disappoint investors hoping for more actions to contain the debt crisis.
Expectations for the ECB, which holds its policy meeting on Thursday, have grown sharply after P r esident Mario Draghi said last week the bank would do whatever it takes to save th e euro, a message echoed by German Chancellor Angela Merkel and French President Francois Hollande.
Some in the mark et speculated the ECB may reactivate its bond-buying program to help r educe S panish and Italian borrowing cost s, but many were skeptical because Ge rmany has repeated its opposition to such a step. [ ID:nL6E8IT375]
"Traders were in a 'show me' mode with enthusiasm fading over last week's comments by both Mario Draghi and Angela Merkel in support of the euro," said Boris Schlossberg, managing director of FX strategy at BK Asset Management i n New York.
German Economy Minister Philipp Roesler warned the ECB about any large-scale government bond purchases and a German government spokesman on Monday reiterated Berlin's opposition to any form of mutualisation of euro zone debt.
The euro fell 0.6 percent to $1.2241, retreating from a three-week high of $1.2389 hit on Friday but holding above a two-year low of $1.2040 hit Tuesday, according to Reuters data.
Adding to bearish sentiment was the euro's failure to close above a key technical level near $1.2325 on Friday.
Still, near-term losses in the euro could be limited as traders were unlikely to place large bets ahead of the ECB meeting, analysts said.
"Clearly, if nothing is announced that would be a massive disappointment," said Callum Henderson, global head of FX research for Standard Chartered Bank in Singapore. "But there is an expectation that we're going to see something meaningful on Thursday."
Analysts said the ECB might instead explore new policy tools such as outright asset purchases, or quantitative easing, something its peers in Britain, the United States and Japan are already using to stimulate growth.
There have also been recent suggestions it could empower national central banks to broaden their asset buying abilities.
Markets will keep an eye on any comments from U.S. Treasury Secretary Timothy Geithner, who is due to discuss the U.S., European and global economies with German Finance Minister Wolfgang Schaeuble and Draghi on Monday.
Markets were bracing for a busy week, with central bank decisions due in the United States and the UK as well as the euro zone, in addition to key U.S. jobs data on Friday.
The euro fell 0.9 percent to 95.80 yen, though it remained above last week's low of 94.09 yen, its lowest level against the Japanese currency in more than 11-1/2 years.
It also struggled against the Swedish crown, which hit a 12-year high after data showed the Swedish economy grew much more than expected in the second quarter. The euro fell 1.5 percent to 8.3370 crowns.
The Australian dollar rallied, reaching a record high of around A$1.1652 against the euro and a four-month high of $1.0499 versus the U.S. dollar.
Many market players said the Australian currency's gains could be vulnerable however, given its close correlation with the global growth outlook.
"People are selling euro/Aussie and that provides Aussie/dollar with an indirect degree of support. But exposure there is pretty big if we get any negative economic developments in Asia and if Draghi and (Federal Reserve Chairman Ben) Bernanke do not deliver," said Daragh Maher, FX strategist at HSBC.
"Our view is we would sell Aussie on any firm break above $1.0500."
The Federal Reserve begins a policy meeting on Tuesday and its decision will be announced on Wednesday, but economists expect policymakers to sit on their hands for now.
The euro pared gains versus the dollar in mid-afternoon trade on Friday as investors refocused on uncertainty about what actions the European Central Bank may take to stem the euro zone debt crisis.
The euro last traded up 0.1 percent at $1.2292.
It had earlier risen to a session high of $1.2389 after Bloomberg reported European Central Bank President Mario Draghi would favor giving the bailout fund a banking license and would meet with German's Bundesbank President Jens Weidmann.
ECB Spokeswoman, asked about the report of Draghi's meeting with Bundesbank's Weidmann, said it's usual practice for Draghi to meet with governing council members.
"Fundamentally, there's a lot of uncertainty and still a lot of unanswered questions as to how exactly the ECB plans to bring down sovereign borrowing costs," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington.
"To some extent, the rally in the euro and more broadly equities and risk assets had gotten a little bit ahead of itself."
EUR/USD Open 1.2448 High 1.2543 Low 1.2409 Close 1.2451
On Tuesday Euro/Dollar continued recovering with almost 130 pips, ahead of G7 summit. The European currency depreciated from 1.2543 to 1.2409 yesterday, not matching the positive money flow sentiment at over 4%, closing the day at 1.2451. This morning the Euro is pushing up, with movements at the upper end of yesterday's range for now.
Euro bounces off 4-month low, but remains under pressure
Euro off 4-month low, helped by short-covering * IMM net euro short positions hit record high * Markets cautious despite G8 pledge to combat market turmoil By Hideyuki Sano TOKYO
The Euro gained ground against its American counterpart on Thursday after dipping into the 1.4220 area (a fresh 8 day low) then recovering those losses to close the session at 1.4362, 45 pips above its starting price.
At present, the cross is quoted in the 1.4360 price zone, in virtually the same place it opened the Asian trade.
Despite this bullish recovery, technically speaking, the 4XEagleEye Analysis Team remains bearish: We believe that possible bearishness could be seen during this trading session. Immediate resistance is at (1.4557). Close above that area could lead us to neutral zone as direction would become unclear, but as long as price moves below that level the major scenario remains bearish.
Thursdays trade saw the Euro as well as equity markets reach monthly highs, as confidence and optimism attracted investors to riskier assets, pushing EUR/USD into the 1.4340 price zone.
Technically speaking, Hourly chart shows indicators flat and losing momentum, as well as 20 SMA that anyway contains price slides. Market sentiment may favor the upside in the pair once above mentioned high and trend line, with 1.4600/20 as next bullish target for the cross, explains Valeria Bednarik, Chief Analyst at FXstreet.com.
At the time of writing, EUR/USD is quoted in the 1.4480 price zone, 20 pips below its Asian open. To the downside, Valeria identifies support levels at 1.4480, 1.4445 and 1.4410. To the upside, resistance levels lie at 1.4540, 1.4585 and 1.4610.
Try publishing this in the UK weekend papers: Traders bet BankofEngland will raise rates to 6.25% --highest since 1… https://t.co/GWXrTEAk4R(2 years ago)
Poor start to a slow market day as Ezone PMIs disappoint. Im still keeping an eye on the rare (-2%) USD-GOLD combo,… https://t.co/UyRzWsRbs7(2 years ago)
-5% YTD is not good, while -7% from the year highs can be tough. Gold traders have their eyes fixated on this for n… https://t.co/NV5UMKsfNo(2 years ago)
ما وراء هبوط الدولار مع الذهب و من منهما يتمكن الارتداد؟
موعدنا الآن في غرفة شركة إكس أم لجلسة الأسواق
https://t.co/Y7tD0RxCS2
@XM_COM (2 years ago)
Jobless claims > 300k before next FOMC meeting would be ideal for Fed to make up for any CPI upside surprise (2 years ago)
"Cook & Eat at Home" scheme may come next to defeat UK inflation... (2 years ago)
Earlier in the week gold selloff was attributed to smaller than exp China EASING. Metal is now holding v well despi… https://t.co/ZW9cmXTPWW(2 years ago)
British Pound is currently in long positive trend from bottom at 1.5390. After good data about Public Sector Net Borrowing price made sharp upside move. Expectations were that the value of indicator will be 13.2B but value shows at 12.4B. This is much better than data about July -1.9B. As you can see on four-hour chart below price of the currency pair continues to move above 15 and 25 EMA which signals for continuing the trend. Today cable made new fresh high at 1.6307 after break of the previous top at 1.6274. If the price closes the week clear above 1.6300, this will bring further rise to 1.7043 in long term. Next target of the upside momentum in short term is set at 1.6450 first 1.6570 after that. On downside first support could be projected around 1.6160. In case of break next support would be around 1.6070. Crucial for whole bullish trend is 1.5910. Break and daily close below that level would change scenario in the currency pair for downside. In long term, price movements from 1.3503 are treated as consolidation pattern of the long term down trend from 2.1161. There isnt any change in this view. There are a lot of interpretations of the corrective movement from 1.3503 but before break of 1.5234 support more consolidation would continue.
Source:http://www.binaryoption.com/binary-options-trading-markets/binary-options-opinions/a-technical-look-at-binary-gbpusd.html
Last week the British pound posted very decent gains against its U.S. counterpart, as market participants were expecting a new wave of quantitative easing to be announced by the Federal Reserve in its meeting, scheduled for Thursday. After struggling with the key 1.60 level for a while, the sterling finally broke the resistance and moved higher for the rest of the week. The currency was also helped by the positive economic data, which were released in the course of the week. First, the trade balance figures came in better than expected. Analysts were projecting the deficit on the current account to have contracted to 8.9B for the month of July from a reading of 10.1B for the previous relevant period. Instead, the trade deficit declined to 7.1B, scattering the bears in the pound and fueling another wave of buying. On Wednesday, we had the closely monitored claimant count change figures being announced. They also surprised on the upside. Economists were projecting the people claiming unemployment-related benefits to have risen by 100, but the Office for National Statistics report indicated that actually 15,000 people fewer filed for government benefits. The response to this positive development was so strong that it overshadowed the news that the U.K.s unemployment rate rose to 8.1% in July. On Thursday, the auction of 10-year gilts showed that the yields have risen on a month over month basis as investors preferred to put their money in higher-grossing assets such as stocks. The bid-to-cover ratio was also relatively low. These news, however, remained in the background as the spotlight was on the Federal Reserve statement, which was scheduled for later in the day. The U.S. central bank announced a new bond-buying program that surprised market participants with its aggressiveness. According to the new plan the Fed would have to buy $40 billion worth of mortgage backed securities and government bonds with longer maturities for as long as necessary for the employment in the worlds largest economy to start picking up again. After the news hit the wires traders sold the dollar and bought its major counterparts as they were expecting the new measures to have a dilutive effect on the U.S.
currency. The sterling finished the session around the highs and continued rising in the last day of the week. The GBP/USD closed at 1.6211 of Friday on a weaker note as it retracted from highs of 1.6257, which it touched earlier in the day. This week the pound is moving sideways, posting modest gains against the greenback. Yesterday we touched fresh new highs of 1.6274 for the month and we are now very close to the crucial 1.63 level, where the April rally ran out of steam. If we manage to break above the aforementioned level, we will move to the GBP/USDs highest rates since late August of 2011. For today, however, the pound will probably remain below its Monday highs as the inflation figures for the U.K. economy disappointed. Although the CPI on year over year basis came in line with expectations, the RPI dropped to 2.9% from a reading of 3.2% for the month of July. The core CPI and the HPI also slipped to 2.1% and 2.0%, respectively, from a reading of 2.3% for the previous relevant period.
Technically speaking, the resistance in the currency pair is provided by the 1.63 level, while support is provided by the 25-period moving average around 1.6192. Oscillators are moving around the upper bands of their respective ranges with the relative strength index at 65 and the stochastic at 61. The MACD has reached the highs of late August and is issuing sell signals, which might indicate that we will see a correction of some sort before we move to higher grounds.
http://www.binaryoption.com/binary-options-trading-markets/binary-options-opinions/a-brief-look-at-binary-gbpusd-4.html
Binary Gold keeps increasing. The call options on the underlying instrument posted a huge advance during the trading session on Friday. It was partially favored by the depreciating U.S Dollar which is facing a selling pressure for now. This is the source of the upside potential in the precious metal. Binary traders betting on the given asset have plenty of opportunities to place many trades and earn nice cash.
The relationship between the greenback and the gold is inverse as usual for now. They are considered to be safe-heavens. In times of fear and uncertainty, they could move in tandem. The binary markets are not so far from the above-mentioned scenario. Thus, the binary traders should pay close attention to some change in the behavior between both instruments.
The value of binary gold could be boosted by a variety of factors. It could be purchased by investors shifting from low interest bearing government bonds that can not keep up with the rate of inflation. As an inflation hedge, it is about to leap when more money is printing by the Federal Reserve. The binary markets are witnessing this phase now.
The uncertainty about the future development of the global economy is pushing the price of gold much higher. This tendency is likely to continue. Binary traders should keep betting on the underlying instrument waiting for new yearly highs.
Potential short-term targets are $1730, followed by $1760.
Source:http://www.binaryoption.com/binary-options-trading-markets/binary-commodity-options-trading/rush-for-binary-gold-will-continue.html
The Aussie lost its upward momentum and moved lower all week long. After touching highs of 1.0617 last week the AUD/USD hovered around the tops for quite some time before finally reversing its upward trend. The week was not heavy on economic news, but still there were some important releases in the middle of the week. On Tuesday, the National Australia Bank (NAB) announced its business confidence figures for July. According to the survey, conducted by the NAB, respondents saw the local business conditions improving with the economic indicator coming at its highest level since May. By contrast, in the month of June, the survey indicated that the business conditions are worsening. At the same time, the new motor vehicle sales dropped by 0.8% on a month over month basis. This was their second consecutive month of declines. To make the matters worse, the June figure was revised on the downside from -0.6% to -1.0%. The AUD/USD slipped on the news after having pushed both below its 25-period and its 50-period moving averages in the previous session.
The Aussie finished the day slightly off of the lows of 1.0461, which we touched towards the end of the trading day. On Wednesday, more news hit the wires. First the Westpac consumer sentiment figures were released. According to the announced number the economic conditions were expected to worsen in the future by 2.5%. This was the first negative reading of the indicator since March and came after last month the same survey, conducted by the Westpac Banking Corporation, indicated that the business climate in Australia was expected to improve. Later in the day the wage price index for June was announced, coming at 1.0%. Analysts were expecting a more modest reading of 0.8%, which would have effectively shown that the price government and businesses pay for labor has grown at a slower rate in June than in May. Instead, the growth of wages proved to be stronger in June than in the previous relevant period. The AUD/USD rose on the news after bouncing off of the support level at 1.0449, where the intermediate lows of early August stand. After approaching the 25-period moving average, however, the currency pair lost its momentum and declined to close at 1.0478. Yesterday the MI inflation expectations were announced, revealing that consumers expect the price of goods and services to increase by 2.4%. The number was well below the 3.3% increase, which consumers expected prices to grow in the survey, conducted in June. The AUD/USD gained after the news were released, pushing above its 25-period moving average and stopping slightly below the 50-period moving average. The bounce in the Aussie, however, proved to be unsustainable as the IMF released a report today, in which it claimed that the Australian dollar is overvalued. Market participants sold the currency on the news, sending it to fresh new lows against its U.S. counterpart. The AUD/USD even tested the support at the 1.0400 level, but failed to break below it. Currently the Aussie is standing at 1.0423, but the downward pressure continues to be elevated. Oscillators are all trending lower with the relative strength index approaching the lower band of its range and the stochastic already in oversold territory. The MACD is moving below 0 and is issuing sell signals. Also, binary traders should have in mind that the Aussie seems to be entering in a head and shoulders formation, which might be seen as a trend reversal indication.
Source:http://www.binaryoption.com/binary-options-trading-markets/binary-options-opinions/a-brief-overview-of-binary-audusd-2.html
The euro fell on Monday , hitting a record low against the Australian dollar, on worries the European Central Bank may disappoint investors hoping for more actions to contain the debt crisis.
Expectations for the ECB, which holds its policy meeting on Thursday, have grown sharply after P r esident Mario Draghi said last week the bank would do whatever it takes to save th e euro, a message echoed by German Chancellor Angela Merkel and French President Francois Hollande.
Some in the mark et speculated the ECB may reactivate its bond-buying program to help r educe S panish and Italian borrowing cost s, but many were skeptical because Ge rmany has repeated its opposition to such a step. [ ID:nL6E8IT375]
"Traders were in a 'show me' mode with enthusiasm fading over last week's comments by both Mario Draghi and Angela Merkel in support of the euro," said Boris Schlossberg, managing director of FX strategy at BK Asset Management i n New York.
German Economy Minister Philipp Roesler warned the ECB about any large-scale government bond purchases and a German government spokesman on Monday reiterated Berlin's opposition to any form of mutualisation of euro zone debt.
The euro fell 0.6 percent to $1.2241, retreating from a three-week high of $1.2389 hit on Friday but holding above a two-year low of $1.2040 hit Tuesday, according to Reuters data.
Adding to bearish sentiment was the euro's failure to close above a key technical level near $1.2325 on Friday.
Still, near-term losses in the euro could be limited as traders were unlikely to place large bets ahead of the ECB meeting, analysts said.
"Clearly, if nothing is announced that would be a massive disappointment," said Callum Henderson, global head of FX research for Standard Chartered Bank in Singapore. "But there is an expectation that we're going to see something meaningful on Thursday."
Analysts said the ECB might instead explore new policy tools such as outright asset purchases, or quantitative easing, something its peers in Britain, the United States and Japan are already using to stimulate growth.
There have also been recent suggestions it could empower national central banks to broaden their asset buying abilities.
Markets will keep an eye on any comments from U.S. Treasury Secretary Timothy Geithner, who is due to discuss the U.S., European and global economies with German Finance Minister Wolfgang Schaeuble and Draghi on Monday.
Markets were bracing for a busy week, with central bank decisions due in the United States and the UK as well as the euro zone, in addition to key U.S. jobs data on Friday.
The euro fell 0.9 percent to 95.80 yen, though it remained above last week's low of 94.09 yen, its lowest level against the Japanese currency in more than 11-1/2 years.
It also struggled against the Swedish crown, which hit a 12-year high after data showed the Swedish economy grew much more than expected in the second quarter. The euro fell 1.5 percent to 8.3370 crowns.
The Australian dollar rallied, reaching a record high of around A$1.1652 against the euro and a four-month high of $1.0499 versus the U.S. dollar.
Many market players said the Australian currency's gains could be vulnerable however, given its close correlation with the global growth outlook.
"People are selling euro/Aussie and that provides Aussie/dollar with an indirect degree of support. But exposure there is pretty big if we get any negative economic developments in Asia and if Draghi and (Federal Reserve Chairman Ben) Bernanke do not deliver," said Daragh Maher, FX strategist at HSBC.
"Our view is we would sell Aussie on any firm break above $1.0500."
The Federal Reserve begins a policy meeting on Tuesday and its decision will be announced on Wednesday, but economists expect policymakers to sit on their hands for now.
The dollar was steady at 82.786 against a basket of major currencies, rebounding from a three-week low of 82.343 on Friday. Against the yen, the dollar eased 0.3 percent to 78.18 yen.
http://www.reuters.com/article/2012/07/30/markets-forex-idUSL2E8IU2DB20120730?feedType=RSS&feedName=usDollarRpt&rpc=43
The euro last traded up 0.1 percent at $1.2292.
It had earlier risen to a session high of $1.2389 after Bloomberg reported European Central Bank President Mario Draghi would favor giving the bailout fund a banking license and would meet with German's Bundesbank President Jens Weidmann.
ECB Spokeswoman, asked about the report of Draghi's meeting with Bundesbank's Weidmann, said it's usual practice for Draghi to meet with governing council members.
"Fundamentally, there's a lot of uncertainty and still a lot of unanswered questions as to how exactly the ECB plans to bring down sovereign borrowing costs," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington.
"To some extent, the rally in the euro and more broadly equities and risk assets had gotten a little bit ahead of itself."
EUR/USD Open 1.2448 High 1.2543 Low 1.2409 Close 1.2451
On Tuesday Euro/Dollar continued recovering with almost 130 pips, ahead of G7 summit. The European currency depreciated from 1.2543 to 1.2409 yesterday, not matching the positive money flow sentiment at over 4%, closing the day at 1.2451. This morning the Euro is pushing up, with movements at the upper end of yesterday's range for now.
prweb
Euro off 4-month low, helped by short-covering * IMM net euro short positions hit record high * Markets cautious despite G8 pledge to combat market turmoil By Hideyuki Sano TOKYO
Reuters
The Euro gained ground against its American counterpart on Thursday after dipping into the 1.4220 area (a fresh 8 day low) then recovering those losses to close the session at 1.4362, 45 pips above its starting price.
At present, the cross is quoted in the 1.4360 price zone, in virtually the same place it opened the Asian trade.
Despite this bullish recovery, technically speaking, the 4XEagleEye Analysis Team remains bearish: We believe that possible bearishness could be seen during this trading session. Immediate resistance is at (1.4557). Close above that area could lead us to neutral zone as direction would become unclear, but as long as price moves below that level the major scenario remains bearish.
Source: http:/www.Fxcc.com
Thursdays trade saw the Euro as well as equity markets reach monthly highs, as confidence and optimism attracted investors to riskier assets, pushing EUR/USD into the 1.4340 price zone.
Technically speaking, Hourly chart shows indicators flat and losing momentum, as well as 20 SMA that anyway contains price slides. Market sentiment may favor the upside in the pair once above mentioned high and trend line, with 1.4600/20 as next bullish target for the cross, explains Valeria Bednarik, Chief Analyst at FXstreet.com.
At the time of writing, EUR/USD is quoted in the 1.4480 price zone, 20 pips below its Asian open. To the downside, Valeria identifies support levels at 1.4480, 1.4445 and 1.4410. To the upside, resistance levels lie at 1.4540, 1.4585 and 1.4610.
Source:http://www.fxcc.com