Forex

The US Dollar deflates following its Monday rally, allowing the pair to rebound today, ahead of key events – mainly form the US

The week started with losses for the pair, which consolidates today, but could not avert new nearly two-year lows

The USDJPY weekly chart has had five weeks of gains since its November low (aqua ellipse). One of the reasons for this is that the JPY is considered a haven. The fact that it has been depreciating against the USD indicates a risk-on sentiment. Given this, it is no surprise that equity markets had a strong December. However, we note that the currency pair's RSI has moved into an overbought…

King Dollar dominated the first trading of the year and the pair remains soft after yesterday’s drop

The pair started the new year on the defensive, following two solid weeks, but finds support at the start of the European session

The pair finished December and the full 2021 with profits and makes an upbeat start to the new year, extending the four-week profitable streak

The top chart shows the weekly US10 Yr. treasury. We have added moving averages as a measuring mechanism for yield appreciation. The green ellipse indicates that the quicker green moving average is near to crossing above the slower orange moving average. If this happens, and angle and separation develop, the odds favour further appreciation in the rate. The blue dashed vertical marks the time of the previous bullish cross (aqua…

The common currency comes under pressure at the start of the European session and registers fresh lows for the week, under 1.1300 against the greenback

The pair has been in a consolidation amidst holiday thinned trading, lacking impetus in the aftermath of recent intense central bank activity

Following a three-week profitable streak, the pair enters the final week of the year in the offensive, setting new month highs

Initial jobless claims came in at 205K, slighter higher than the 200K expected, and were constant week over week. At the same time, core durable goods and core PCE were released, with both numbers beating consensus. Core durable goods m/m printed at 0.8% (0.6% - forecast) and core PCE m/m was 0.5% (0.4% - forecast). The dollar has been under pressure this week, but these provided some support. FXCM's USDOLLAR…