Fundamental Analysis

  • Weekly Summary on USD, EUR, JPY, GBP, AUD, CAD and RMB

    January 28 2013 1:21 PM

    The dollar is mixed after US pending home sales unexpectedly fell in December while durable goods orders reported higher than expected. Pending home sales declined in December after three months of gains for the first time since August, showing uneven progress in the housing market. The index of contracts for the purchase of previously owned homes fell 4.3% after a revised 1.6% increase. Meanwhile, the US Commerce Department reported orders for durable goods climbed more than forecasted in December, showing US manufacturing rebounded following a mid‐year slump. Bookings for goods meant to last at least three years rose 4.6%, exceeding the highest forecast of economists surveyed, after a 0.7% gain in November. Excluding demand for transportation equipment, which is often volatile, orders increased 1.3%. Aircraft bookings rose 10.1% after falling 12.9% in November. In addition, a gauge of US business investment plans improved in December, a sign that companies were betting the economy will pick up despite fears over tighter fiscal policy. Movements in major currencies were limited ahead of key economic events later in the week, including a Federal Reserve meeting and the monthly jobs data for January.

  • Daily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZDDaily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZD

    January 25 2013 1:13 PM

    US dollar lower on drop in US home sales - Euro zone banks to repay more ECB loans than expected, euro higher - UK economy shrinks 0.3 percent in Q4; slides versus USD and euro

  • Daily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZDDaily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZD

    January 24 2013 12:36 PM

    U.S. jobless claims data better than expected - Euro rises on better-than-expected euro zone PMI - Sterling eases to near 5-month low versus US dollar

  • Daily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZD

    January 23 2013 1:13 PM

    Sterling recovers from near 5-month low on BoE minutes, UK jobs data - Yen’s three-day gain best since June 2012 - Bank of Canada left interest rates unchanged; Canada’s dollar at two month low

  • Daily Summary on USD, EUR, JPY, GBP, AUD, CAD and RMBDaily Summary on USD, EUR, JPY, GBP, AUD, CAD and RMB

    January 22 2013 1:40 PM

    With the US closed yesterday for the Martin Luther King Day Holiday, and not to forget the presidential inauguration, domestic markets were off to a quiet start. After this, there is a fairly light US economic calendar boding for a calm week, with only a few releases and low Fed activity. The preliminary reading on the Markit manufacturing PMI for January is due on Thursday and it should give some indication of how the US budget negotiations have affected manufacturing activity. The week will also bring housing data today and Friday, when existing home sales and new home sales are released. Existing home sales fell 1.0% to a 4.94 million unit annual rate in December.

  • Daily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZDDaily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZD

    January 18 2013 2:07 PM

    U.S. consumer sentiment in January hits lowest in over a year - Markets position for aggressive action from Bank of Japan - NZD knocked by lower-than-expected inflation

  • Daily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZDDaily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZD

    January 17 2013 1:01 PM

    US jobless claims drop to five-year low; housing starts climb to highest in 4 ½ years - Euro strengthens on decline in Spain’s borrowing costs - Yen plummets in anticipation of aggressive policy BoJ easing

  • Daily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZD

    January 16 2013 1:06 PM

    The USD is stronger against most major currencies with the exception of the JPY, as US economic data released today suggests that the economy is continuing to grow moderately. The Consumer Price Index remained flat in December, pointing to muted inflation pressures that should provide the Federal Reserve extra room to accelerate the economy by continuing on with its ultra-accommodative monetary policy. The Fed said last month that they would keep interest rates near zero at least until the jobless rate falls to 6.5%, as long as the central bank believes inflation will stay below 2.5%. Today’s CPI data reinforces the Fed’s view that inflation will not hit the 2.5% threshold in the near future. US industrial production rose 0.3%, rising for a second straight month in December after sluggish industrial output data in October from Hurricane Sandy. The greenback appears to be building a short-term base ahead of the next FOMC interest rate decision later in the month. Expect bullish sentiment towards the dollar in the days ahead as central bank officials scale back their willingness to expand the balance sheet further.

  • Daily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZDDaily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZD

    January 15 2013 12:42 PM

    US dollar pares losses versus yen after U.S. data - Sterling stays weak versus USD and euro - Commodity currencies drag lower versus USD

  • Weekly Summary on USD, EUR, JPY, GBP, AUD, CAD and RMBWeekly Summary on USD, EUR, JPY, GBP, AUD, CAD and RMB

    January 14 2013 1:33 PM

    After a slow two‐week period following the holidays, the pace of Fed rhetoric and US economic data will pick up this week, providing investors with a look at the probable direction of policy and data for the final two months of 2012. The major event this week will be Fed Chairman Ben Bernanke’s speech this afternoon, where he will probably reinforce the dovish direction of central bank policy. Meanwhile this week, we will see a number of first‐tier data reports that will touch on retail sales, inflation, regional manufacturing, residential investment, and consumer confidence.

  • Daily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZDDaily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZD

    January 11 2013 1:58 PM

    USD was mixed after the US trade deficit unexpectedly widened. - EUR gained after the ECB decided to keep rates on hold at a historic low of 0.75%. - Commodity currencies were lower after investors took gains from yesterday’s “risk-on” sentiment.

  • Daily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZDDaily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZD

    January 10 2013 12:59 PM

    USD is lower as market sentiment supports higher-yielding currencies. - EUR rose after the ECB left interest rates unchanged. - USD/JPY is back on the defensive and trades comfortably above 88.00.

  • Daily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZDDaily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZD

    January 09 2013 2:26 PM

    The US dollar climbed against the euro and yen, moving back towards a recent 2-1/2 year high versus the yen, as positioning for expectations of looser Bank of Japan monetary policy led some investors to sell the Japanese currency. Without U.S. economic data to continue driving the US dollar one way or another, currencies are likely to trade in the day's ranges and look to events later in the week or react to changes in other asset classes such as stocks.

  • Daily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZDDaily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZD

    January 08 2013 12:56 PM

    Focus shifts to BoE, ECB meetings on Thursday - Weak consumer spending add to poor UK data, hurts sterling - Commodity currencies traded lower but commodity prices support

  • Weekly Summary on USD, EUR, JPY, GBP, AUD, CAD and RMBWeekly Summary on USD, EUR, JPY, GBP, AUD, CAD and RMB

    January 07 2013 1:44 PM

    This week should be relatively quiet with respect to US data releases after last week’s busy schedule. Markets rallied last week in relief over the budget deal, which averted the immediate fiscal cliff. However, concerns over the upcoming negotiations on spending cuts and the debt ceiling might start to take hold in markets in coming weeks. This week, there are only a few data releases worth noting. Tomorrow, the NFIB Small Business Optimism will be released. As a major source of private employment, an increase in small business sentiment could be a positive sign for the US economy. Finally, there are a few Fed speeches this week, which are of some interest. Esther George and James Bullard, who both speak on Thursday, have become voting members of the committee and, therefore, more attention should be paid to their speeches.

  • Daily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZDDaily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZD

    January 04 2013 12:40 PM

    Pace of U.S. hiring cools in December, jobless rate holds steady - Sterling falls to 3 ½ week low versus US dollar, UK services PMI lowest since April 2009 - Dollar/yen hits highest level since July 2010

  • Daily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZD

    January 02 2013 1:10 PM

    US Congress approves deal to avoid “fiscal cliff,” creating a risk appetite. JPY hit an 18-month low on continued BoJ plans for further monetary easing. Commodity currencies traded higher on a risk positive tone after US last minute bill.

  • Daily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZDDaily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZD

    December 28 2012 1:18 PM

    USD is mixed as investors stand on edge over US fiscal cliff results. - JPY held in ranges of 86.00 as the BoJ plans for further monetary easing. - Commodity currencies traded flat as gold and crude oil prices slid lower.

  • Daily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZDDaily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZD

    December 27 2012 12:53 PM

    USD remains mixed as fiscal cliff stalemate continues. - JPY falls to 2-year lows as PM Abe takes office. - Weak UK Data may question GBP safe-haven status.

  • EUR/USD Fundamental Outlook @ ForexAbode Analysis

    December 24 2012 3:46 AM

    The EUR/USD fundamental outlook is updated weekly and is one of the base of the weekly analysis/forecast for EUR/USD. This is mainly derived from the recent major economic releases and news. The EUR/USD economic strength meter at the bottom shows the relative strengths or weakness of the currencies depending on the recent economic releases/news.