Asian Session Recap – June 24, 2014

  • Chinese CB leading index up by 0.7%
  • Nikkei posts 0.07% gain for the day
  • Swiss trade balance due today
  • BOE inflation report hearings to shed more light on rate hike forecasts
  • German Ifo business climate index to dip from 110.4 to 110.3

Higher-yielders returned some of their recent forex gains in the past few trading hours, as traders calmed down after the risk rallies. Japan’s Nikkei index showed a 0.07% gain for the day, enough to let the yen pairs stay afloat. GBP/JPY dipped briefly below the 173.50 area while EUR/JPY retreated to 138.50, yet both managed to recover by around 20 pips afterwards.

China’s CB leading index showed a 0.7% gain, weaker than the previous 1.0% increase but an improvement nonetheless. This wasn’t enough to keep the Australian dollar supported, as AUD/USD edged to a low of .9407 while AUD/JPY slipped below the 96.00 handle.

On tap for the upcoming trading session are the German Ifo business climate index, which is expected to fall from 110.4 to 110.3, and the Swiss trade balance – both of which could lead to notable moves among euro and franc pairs. Also lined up for today is the BOE inflation report hearings, which should shed light on the central bank’s interest rate hike forecasts. Bear in mind that the BOE meeting minutes and Governor Carney’s speech suggested that the U.K. central bank could raise rates before the end of the year, and comments supporting these claims could push the pound higher.

 

U.S. Session Recap

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis.

Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!