Forex Quebec | Global Forex Trading Portal

Forex - Bank of America comments on USD/CAD

2012-05-31T06:10:27Z

Analysts of Bank of America expect the Canadian dollar to fall to its lowest level since October as commodity prices keep declining. Strategists recommend going long on USD/CAD at current levels, targeting at C$1.0528 and with a stop at C$0. 9950.

Specialists note that raw materials account for half of Canada’s export revenue. The CRY (CRB) commodity index fell below 281 (the lowest level since September 2010).

Forex - Economic Background - May 30, 2012

2012-05-30T06:43:32Z

The pair EUR/USD has once again renewed 2-year minimum versus the greenback and tested today the levels below $1.2500. The market’s focus has slightly shifted from Greece to Spain.

The Financial Times reported citing unidentified officials that the ECB rejected the plan of Spanish government to recapitalize BFA-Bankia, the nation’s third- biggest lender, which has been nationalized earlier this month through an injection of treasury debt instead of cash.

Forex - FX Key options expiring today - May 30, 2012

2012-05-30T06:37:44Z

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).

Forex - Royal Bank of Scotland Trading GBP/USD

2012-05-30T07:12:58Z

Analysts at RBS recommend going long on GBP/USD targeting at $1.5820/1.5929 and with a stop at $1.5606.

In their view, the downtrend of the cable has definitely slowed down. According to specialists, it’s too early to tell the trend has become bullish, because the signs of improvement are too modest. However, a close above $1.5674 (current level and a 5-day МА) would indicate a trend reversal.

Forex - Citigroup trading GBP/AUD

2012-05-29T16:02:47Z

Analysts at Citigroup recommend going long on the sterling against the Australian dollar. In their view, GBP/AUD may fall to A$1.53 (50% Fibonacci retracement from Feb. 15 - May 23 rally).

According to specialists, the Aussie is currently oversold due to risk aversion (last week number of short positions on AUD/USD reached its maximum since September 2008).

Forex - AUD and NZD retreated from 6-month lows

2012-05-28T05:00:09Z

Australian and New Zealand’s dollars which have been rapidly falling against the greenback this month due to the market’s risk aversion are recovering versus their US counterpart for the second day.

AUD/USD hit this week 6-month minimum at $0.9690 losing 6.2% in May. Support for the pair lies at $0.9663 (November minimum). Resistance for Aussie is found at $0.9814 (yesterday’s maximum) and $0.9850 (the 10-day MA).

Forex - Economic Background - May 29, 2012

2012-05-29T15:56:53Z

Today’s trading day began with risk aversion. EUR/USD is testing $1.2500 on the downside staying close to 2-year minimum which was hit on Friday.

GBP/USD is consolidating in the $1.5630/5730 area after last week’s sharp decline.

AUD/USD dipped to 0.9800 as Australian markets fell, but then managed to return to 0.9860 during the Asian session.

Forex - Danske Bank : reasons for CHF decline

2012-05-25T12:43:11Z

EUR/CHF rocketed yesterday to 1.2075 Swiss francs after trading in a tight sideways channel since early April. What were the reasons for such an unexpected depreciation of a Swiss franc?

According to analysts at Danske Bank, the cross went up due to unconfirmed data that the SNB might introduce a tax on deposits in order to make the Swiss currency less attractive for the investors.

Forex - Citigroup: if Greece leaves euro area…

2012-05-25T12:53:13Z

Analysts at Citigroup believe that the odds of Geek exit from the euro area (“Grexit” as they say now) are increasing and account currently for 50-75%. In their view, the most important question is whether other countries will follow.

According to Citigroup, if Greece is the only nation leaving the euro area its exit will be a positive factor for euro as with the elimination of the weak link the rest of the region will become stronger.

Forex - HSBC : Yen is our only refuge

2012-05-25T12:10:51Z

Analysts at HSBC note that Japanese yen rose sharply as the euro zone crisis intensified. In their view, bullish pressure on yen will remain strong as uncertainty seems set to continue.

In addition, the market’s positioning is also supportive for JPY: IMM futures positioning data shows that yen remains in net shorts which will be closed or reversed.