Forex - EUR/USD lower after ECB surprise

The euro traded modestly lower against the U.S. dollar during Friday’s Asian session after the European Central Bank surprisingly lowered interest rates Thursday. 

In Asian trading Friday, EUR/USD fell 0.06% to 1.3412. The pair was likely to find support at 1.3254, the low from Sept. 13, and resistance at 1.3548, Wednesday's high.

On Thursday, he European Central Bank surprisingly lowered interest rates to a record-low 0.25% from 0.5%. The bank also cut its marginal lending rate to 0.75% from 1% and left its deposit facility rate unchanged at zero. 

ECB President Mario Draghi said euro zone borrowing costs will remain at present or even lower levels until the economy improves, adding that the euro zone may experience "a prolonged period of low inflation." 

Most traders did not expect ECB to lower rates because the central bank has previously been biased toward monetary easing, not interest rate reductions. However, some soft economic data out of the euro zone in recent days may have forced Draghi’s hand. 

In U.S. economic news out Thursday, the Commerce Department said the U.S. economy grew at an annual rate of 2.8% in the three months to September, far surpassing expectations for a 2.0% reading. The U.S. economy grew by 2.5% in the preceding quarter.

Separately, the Department of Labor said the number of individuals filing for initial jobless benefits in the U.S. last week fell by 9,000 to a seasonally adjusted 336,000, largely in line with analysts' forecasts for a claims to fall by 10,000. 

EUR/USD will be in play again Friday at U.S. is set to deliver the University of Michigan is to release the preliminary reading of its consumer sentiment index, while the Labor Department will release its report on nonfarm payrolls and the unemployment rate. 

Elsewhere, EUR/JPY rose 0.06% to 131.72 while EUR/AUD fell 0.28% to 1.4157.

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Forex - Dollar gains on advancing GDP data, ECB rate cut

The dollar moved largely higher against most major currencies on Thursday after the U.S. government reported the country's gross domestic product grew more than expected in the third quarter, though profit taking clipped the greenback's earlier gains.

A surprise European Central Bank decision to cut interest rates further bolstered the dollar's appeal.

In U.S. trading on Thursday, EUR/USD was down 0.68% at 1.3422.

The ECB trimmed its benchmark interest rate to a record-low 0.25% from 0.5% in an unexpected decision.

The bank also cut its marginal lending rate to 0.75% from 1% and left its deposit facility rate unchanged at zero. 

ECB President Mario Draghi said euro zone borrowing costs will remain at present or even lower levels until the economy improves, adding that the euro zone may experience "a prolonged period of low inflation."

Meanwhile in the U.S. official data showed that the U.S. economy grew at an annual rate of 2.8% in the three months to September, far surpassing expectations for a 2.0% reading. The U.S. economy grew by 2.5% in the preceding quarter.

The robust data rekindled expectations that the Federal Reserve could announce plans to scale back its USD85 billion-a-month stimulus program as its next monthly meeting in December.

Stimulus programs aim to drive recovery by depressing borrowing costs, weakening the dollar in the process, and talk of their dismantling strengthens the currency.

Separately, the Department of Labor said the number of individuals filing for initial jobless benefits in the U.S. last week fell by 9,000 to a seasonally adjusted 336,000, largely in line with analysts' forecasts for a claims to fall by 10,000.

The greenback was flat against the pound, with GBP/USD down 0.01% at 1.6079.

Across the Atlantic, the Bank of England's monetary policy committee voted to leave rates on hold at 0.5% and made no changes to its GBP375 billion quantitative easing stimulus package.

The announcement came after economic data earlier this week added to indications that the recovery in the U.K. is deepening

The dollar was down against the yen, with USD/JPY down 0.77% at 97.91, and up against the Swiss franc, with USD/CHF up 0.40% at 0.9158.

The dollar was up against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.31% at 1.0451, AUD/USD down 0.81% at 0.9449 and NZD/USD trading down 0.72% at 0.8318.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.39% at 80.89.

On Friday, the University of Michigan is to release the preliminary reading of its consumer sentiment index. The U.S. is to round up the week with the closely watched government data on nonfarm payrolls and the unemployment rate.

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Forex Trading Signal for 7th November 2013

                                                                                


Japan (Tokyo)                               United Kingdon (London)                        USA (New York)

For more easy access,,,,,,Download our mobile application on your mobile :   Click Fxsignals 

EUR/USD

 Up  Trend :

 (1) BUY

E/P: 1.35137

T/P: 1.35337

S/L: 1.34800

 

GBP/USD

Up Trend:

(1) BUY

E/P: 1.60814

T/P: 1.61014

S/L: 1.60514

NOTE: The above posted Signals are delayed 2 - 4 hours after it has been  generated.
Daily forex signals are sent ontime to only our subcribers.

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Forex Trading Signal for 6th November 2013

                                                                                


Japan (Tokyo)                               United Kingdon (London)                        USA (New York)

For more easy access,,,,,,Download our mobile application on your mobile :   Click Fxsignals 

EUR/USD

 Down Trend :

 (1) SELL

E/P: 1.34764

T/P: 1.34464

S/L: 1.35100

 

GBP/USD

Up Trend:

(1) BUY

E/P: 1.60234

T/P: 1.60500

S/L: 1.59900

NOTE: The above posted Signals are delayed 2 - 4 hours after it has been  generated.
Daily forex signals are sent ontime to only our subcribers.

To subcribe: click here

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Forex - GBP/USD declines on strong U.S. GDP data

The pound declined against the U.S. dollar on Thursday, as strong U.S. economic growth data sent the greenback broadly higher and after the Bank of England left its monetary policy unchanged. 

GBP/USD hit 1.6010 during U.S. morning trade, the pair's lowest since Tuesday; the pair subsequently consolidated at 1.6027, shedding 0.33%. 

Cable was likely to find support at 1.5903, the low of November 4 and resistance at 1.6144, the high of October 29. 

The dollar strengthened broadly after the Bureau of Economic Analysis said U.S. gross domestic product grew at a seasonally adjusted annual rate of 2.8% in the three months to September, beating expectations for growth of 2%. The U.S. economy grew by 2.5% in the previous quarter. 

The strong data fuelled speculation the Federal Reserve will begin tapering its asset purchase program sooner-than-expected. 

Separately, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending November 2 declined by 9,000 to a seasonally adjusted 336,000.

Analysts had expected U.S. jobless claims to fall by 10,000 to 335,000 last week from the previous week’s total of 345,000. 

Elsewhere, the Bqnk of England's monetary policy committee voted to leave rates on hold at 0.5% and made no changes to the GBP375 billion quantitative easing stimulus package.

The announcement came after economic data earlier this week added to indications that the recovery in the U.K. is deepening.

Sterling was higher against the euro with EUR/GBP retreating 0.71%, to hit 0.8344. 

The euro came under broad selling pressure after European Central Bank President Mario Draghi confirmed that the central bank cut its benchmark interest rate to a record low 0.25% from 0.5%, saying the decision was 'in line' with the ECB's forward guidance on interest rate policy from July.

The bank cut its marginal lending to 0.75% from 1% and left its deposit facility rate unchanged at 0.0%. 

Draghi reiterated that euro zone borrowing costs will remain at their present or lower levels until conditions improve, indicating that further rate cuts are still possible. 

The euro zone may experience "a prolonged period of low inflation", Draghi warned, followed by a gradual return back to the bank’s target of close to, but still below 2%. 

He said the decline in euro zone inflation in October was stronger than expected and added that inflation is expected to remain at low levels in the coming months.

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