Stocks and Dollars

On Friday, the US Q4 GDP release failed to give a clear guidance for USD trading. Uncertainty on Egypt going into the weekend provided a good reason to take some profit on EUR/USD longs. The yen found a better bid, too.

The euro fell against the dollar and yen Monday in Asia as investors dumped the risk-sensitive currency on fears that ongoing political turmoil in Egypt could spread to its oil-producing Arabian neighbors. In Cairo, anti-government protesters are violently demanding the nation’s longtime President Hosni Mubarak leave office, sparking armed robberies

Euro edges slightly higher at the start of a new week recovering some of its losses made due to the deadly protests in Egypt. Risk aversion in the currency markets is high as investors fear that this political uncertainty could spill in other countries and create Middle East instability. Euro

Risk appetite dominated the Asian markets with the Yen, Dollar and Swiss Franc strengthening against majority of their peers as tensions in Egypt led to investors locking their money in wealth preservation assets. Asian stocks declined, extending their biggest slump in two months as Egypt tensions entered its sixth day

This week will see a lot of economic indicators. Friday’s US job report will attract most attention, but also the EU summit and the ECB governor’s comments following the interest-rate announcement (Thursday) will attract strong focus.

On Friday Pound/Dollar decreased with nearly 150 pips, in converse with the neutral Interbank sentiment at over +6%. The Cable depreciated from 1.5967 to 1.5824, closing the week at 1.5850. Today the British Pound weakened even further down to 1.5819. On the 1 hour chart range trading has formed, while

Remains under pressure after failing to sustain gains above 1.3738, 61.8% retracement of 1.4280/1.2872 decline, with last Friday’s closure below 1.37 level, anticipating stronger correction. Immediate support at 1.3573 has been tested so far, as the pair posted fresh one-week low at 1.3569. Strong support lies at 1.3539, loss of

EURUSD Comment: Slapped down at the 61% Fibonacci retracement resistance, but finding support from the 9-day moving average just under the top of the Ichimoku ‘cloud’. Expect consolidation at current levels today.