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15 May 2013
Session Recap: USD extends gains; EUR/USD closes below 1.2950
FXstreet.com (San Francisco) - The Greenback traded higher on Tuesday as traders are turning more dollar bullish and the smart money is moving to the US. Wall Street closed in a new all time highs and 10-year yields is above 1.95%.
Confidence in US recovery was fueled by the widely followed Appaloosa manager David Tepper that stated he is "definitely bullish" on stocks. Tepper said that employment, housing and financials are improving in the US.
Meanwhile, Fitch upgraded Greece rating from CCC to B-, still 'junk' while the ECB's Asmusses said the German economy is 'relatively robust'. Gold declined to $1,425.
The EUR/USD is closing below the 1.2950 key level for first time since April 4th and market is expecting the next bearish wave to 1.2880. As FXstreet.com Chief analyst Valeria Bednarik comments, "in the 4 hours chart 20 SMA presents a strong bearish slope, indicators hold in negative territory: as long as below 1.2970 now, there’s scope for a test of 1.2880 area, which has been a major support/resistance over the past few months."
The USD/JPY did a one more step and the pair is now trading above the 102.00 level at highest since August 2008. The break came after news from Kyodo reported that Japanese PM Abe will announce a second set of growth strategies on Friday.
The GBP/USD is ready to test the 1.5200 area after declining 400 pips in May. The AUS/USD continues its sell-off and currently it si trading below the 0.9900 area. Market expects further bearish movements and the testing of the 0.9850 long term support.
USD/CHF rallied to the highest since August 21, 2012 and the USD/CAD climbed around 100 pips on the day to trade at May's maximums at 1.0180.
Main headlines in the American Session:
US: Import Price Index fell 0.5% MoM in April
Commodities Brief – Precious metals bounce off intraday lows, crude testing 95.00
Abenomics 2.0 coming on Friday – Kyodo
Fitch upgrades Greece to B- with outlook stable
Wall Street rallies as investors are 'definitely bullish'
Confidence in US recovery was fueled by the widely followed Appaloosa manager David Tepper that stated he is "definitely bullish" on stocks. Tepper said that employment, housing and financials are improving in the US.
Meanwhile, Fitch upgraded Greece rating from CCC to B-, still 'junk' while the ECB's Asmusses said the German economy is 'relatively robust'. Gold declined to $1,425.
The EUR/USD is closing below the 1.2950 key level for first time since April 4th and market is expecting the next bearish wave to 1.2880. As FXstreet.com Chief analyst Valeria Bednarik comments, "in the 4 hours chart 20 SMA presents a strong bearish slope, indicators hold in negative territory: as long as below 1.2970 now, there’s scope for a test of 1.2880 area, which has been a major support/resistance over the past few months."
The USD/JPY did a one more step and the pair is now trading above the 102.00 level at highest since August 2008. The break came after news from Kyodo reported that Japanese PM Abe will announce a second set of growth strategies on Friday.
The GBP/USD is ready to test the 1.5200 area after declining 400 pips in May. The AUS/USD continues its sell-off and currently it si trading below the 0.9900 area. Market expects further bearish movements and the testing of the 0.9850 long term support.
USD/CHF rallied to the highest since August 21, 2012 and the USD/CAD climbed around 100 pips on the day to trade at May's maximums at 1.0180.
Main headlines in the American Session:
US: Import Price Index fell 0.5% MoM in April
Commodities Brief – Precious metals bounce off intraday lows, crude testing 95.00
Abenomics 2.0 coming on Friday – Kyodo
Fitch upgrades Greece to B- with outlook stable
Wall Street rallies as investors are 'definitely bullish'