Tuesday, May 14, 2013
Earlier in today's trading session, the EUR/USD continued it's whipsaw behavior as headlines from both signs of the pond (US & Eurozone) kept the common currency locked within a range. German ZEW numbers basically came in unchanged at 36.4 for May, when last month's number was only 36.3. This failure to beat the forecast of 38.2 did not change investor sentiment since the Eurozone Industrial Production number beat expectations at 1.0%, which neutralized the weak Zew reading. However, risk sentiment eventually leaned in favor of the greenback as it benefited from both safe haven flows and improving US fundamentals that caused investors to search for yield in equities. The DXY or USD Index rallied, along with global equities and US Treasury yields. This risk appetite was created despite the rumors of a potential tapering off of QE by the FED. The EUR/USD pair fell 98 pips from its session high at 1.3029 to a session low of 1.2931 where price found support at the 61.8% fibonacci retracement level of the rally starting April 4th at 1.2740 to the May 1st High at 1.3243. Most of the dollar-demoninated crosses saw USD strength including the USD/JPY which broke above the 102.00 resistance.
Later in the trading session, David Tepper, who is the hedge fund manager at Appaloosa Management, stated in an interview that he is definitely remaining bullish on equities and this was the final catalyst that improved risk sentiment for the day and we continued to see USD strength for the remainder of today's trading session.
Thursday, May 2, 2013
In today's V.I.P. webinar, we briefly discuss the current price behavior in the EUR/USD pair and the fundamental news & events pushing market prices. We also attempt to place a few live trades using the Slumdog Forex trading system.