Stocks and Dollars

This week’s economic data continued to point toward sustained economic growth. The employment situation improved at a better-than-expected pace in January with 243K additional jobs added. Personal income and spending data indicated that personal incomes rose modestly in December, but slightly lower consumer spending resulted in a higher savings rate

You’d be forgiven if you began this week feeling a bit glum. With the Federal Reserve downgrading their forecasts for economic growth and reinforcing their pessimism with a commitment to leave interest rates at low levels until late 2014, who wouldn’t be left feeling a bit melancholy? Even more, who,

Risk markets’ pull back was rather shallow last week with help of solid global economic data and indeed, major equity indices finally resumed recent rise after much stronger than expected employment data from US. While DOW is still limited by an intraday high made last year at 12876, the close

EUR/USD turned into consolidation below 1.3233 last week and initial bias remains neutral for some more sideway trading. On the upside, sustained break of 38.2% retracement of 1.4246 to 1.2625 at 1.3244 will resume the rebound from 1.2625 and target 61.8% retracement at 1.3627. On the downside, break of 1.2931

GBP/USD rose further to as high as 1.5882 last week before making a temporary top there and consolidates. Initial bias is neutral this week for some sideway trading. But near term outlook will stay cautiously bullish as long as 1.5641 cluster support holds (38.2% retracement of 1.5234 to 1.5882). Above

USD/JPY dropped sharply to as low as 76.02 last week but made a temporary low there and recovered. Initial bias is neutral this week for some consolidations and the pair might recover back towards 55 days EMA (now at 77.14). Though, note that the strong break of 76.55 support confirmed

USD/CHF turned into sideway trading and consolidated above 0.9114 temporary low last week. Initial bias remains neutral this week for more consolidative trading. But even in case of another rise, we’d expect upside to be limited by 38.2% retracement of 0.9594 to 0.9114 at 0.9297 and bring fall resumption. As

AUD/USD rose to as high as 1.0793 last week and the break of 1.0752 serves as the first signal that consolidation pattern from 1.1079 is finished at 0.9663 and the larger up trend might be resuming. Initial bias remains on the upside and AUD/USD should now target a test on