Stocks and Dollars

There were 370,000 seasonally adjusted initial claims for unemployment insurance in the US in the week ending May 12, unchanged from the previous week’s upwardly revised level (initially reported as 367,000). The four-week moving average of initial claims, which better controls for weekly volatility, declined to 375,000 from 379,750 the

The Canadian dollar has weakened to its lowest last seen in January after the European central bank indicated that it is going to reduce its lending to some banks in Greece to reduce its risk. Investors have taken this to mean that Greece might lose its position in euro zone

Taking a general look at markets before the end of this week, we can see that the bearishness started to lose momentum as traders are speculating now what tools Central Banks might provide to revive the slowing pace of recovery, especially the European Central Bank amid the current political instability

Banks are closed for European nations observing Day of Ascension, a Catholic holiday that commemorates the rise of Jesus into heaven after being crucified. US banks however are open.

During the European session, there was certainly a continuing ascension of the safe haven currencies USD and JPY as the market

Cable has dropped further breaking below its Support at 1.5880. The 21-Week-MA Support is near current levels at 1.5813 and it needs to be seen whether it can hold or not. If it holds, we might see a bounce back move to 1.5900-30 in the coming sessions. On the other

The EUR/USD broke into new lows for the week, coming down to the 1.2660 level at the beginning of the 5/17 US trading session. The 1.2625-1.2660 support area has been documented at FXTimes on the daily chart. On the 4H chart, we see that the market could be already developing

No change in USD/JPY’s outlook. Recovery from 79.42 could continue. But still, with 80.61 minor resistance intact, outlook remains cautiously bearish and recent decline is still expected to continue. Below 79.42 will target 61.8% retracement of 76.02 to 84.17 at 79.13 first. Break will pave the way to 75.56/76.02 support

No change in USD/JPY’s outlook. Recovery from 79.42 could continue. But still, with 80.61 minor resistance intact, outlook remains cautiously bearish and recent decline is still expected to continue. Below 79.42 will target 61.8% retracement of 76.02 to 84.17 at 79.13 first. Break will pave the way to 75.56/76.02 support