View full post on DailyFX – Analyst Picks

1.3231 · Below · EURUSD · Possible

For weeks, we have seen risk appetite continue its slow and choppy advance to the benefit of S&P 500 and AUDUSD. And, for contrast, EURUSD was taking the more expected route against fundamentals in its steady tumble. Yet, as John Maynard Kenyes once said ‘markets can remain rational longer than you can remain solvent.’ Now, we find both the standards for risk trends (equities and carry currencies) climbing alongside the most fundamentally troubled (euro). Can this last? We discuss both the fundamental and speculative sides of the FX and capital markets going forward.

Appetite · Both · Conviction · EURUSD · Lacks · Outpacing · Risk

View full post on DailyFX – Analyst Picks

EURUSD · Momentum · Regain · Sellers

This past week was riddled with bank downgrades, warnings that there were limits to support for the EU crisis and clear signs that liquidity is struggling to thaw into the end of the year. For all intents in purposes, risk is still exceptionally high; but lack of participation may hold the markets back from larger bearish trends. Tempered trends however does not translate into the absence of volatility. We head into the new trading week with expectations of a large liquidity injection by the ECB but the risk of possible downgrades to critical Euro-area players. It may prove to be a volatile calm.

Downgrades · EURUSD · Forward · Infusion · Liquidity · Looks · Risk

The world’s largest economy is expected to expand at a faster pace in the fourth quarter and the GDP report may increase the appeal of the USD as the development dampens the scope for additional monetary easing.

View full post on DailyFX – Trading News Events

Advance · EURUSD · Report · Trading · U.S.

After months of divergent trend, the benchmark equity index (S&P 500) and benchmark currency pair (EURUSD) are finally moving in the same direction. However, whether it is relief from the European crisis for the euro or stimulus-fed gains for stocks; the risk of a change in sentiment tides is a constant risk. With fundamentals on the mind, the market will absorb US and UK GDP figures, the FOMC rate decision and a Greek bond solution among other events with a concerned eye. How sturdy is this prevailing trend and what pairs look good against the different scenarios? We discuss this and more in this weekend’s video.

EURUSD · more · Room