Dollar maintains strength whilst Euro and Yen on the slide

March 10, 2015

The market calmed down and majors started to recoup their losses against the Dollar. The labour market condition index (LMCI), which the Fed watches closely, slid again to 4. The Fed has a preference for the data as it includes the 19 relevant indicators in providing a comprehensive view of the job market. The reading’s trend differs on the great success of the non-farm payroll. Yet, the market has chosen to ignore the indicator and so, the bull trend of Dollar continues.

The Yen was the weakest major currency yesterday as the Dollar Yen refreshed month highs to 121.40 and closed around 121.20 at this morning. USDJPY has now confirmed the breakout of the previous 3-month triangle/wedge pattern. Last December’s high of 121.85 will soon be tested.

USDJPY 100315 | Vantage FX

The ECB officially started its bond purchasing program yesterday. The 10-year German bond yield fell to 0.36% and the Italian one fell to 1.28%. The Euro Dollar remains at an 11-year low. It rebounded to 1.09 in the morning European session but erased all the gains later on. The mid-run of this currency is still bearish even after the endless fall. The ECB’s program is squeezing out funds from the bond markets to markets outside of the Eurozone instead of providing financial support to the local business activities. The outflow may continue and drag the Euro to parity level against Dollar.

EURUSD 100315 | Vantage FX

Switching to the stock markets, the Shanghai Composite surged by 1.89% to 3302 as the authority agreed that banks can offer stock brokage business. The Nikkei Stock Average lost 0.95%. Australian ASX 200 slumped by 1.31%. In European markets, the UK FTSE was down 0.51%, the German DAX gained 0.27% and the French CAC Index lost 0.51%. The US stocks rebounded from the loss of last Friday. The S&P 500 closed 0.39% higher at 2079. The Dow gained 0.78% to 17996, and the Nasdaq Composite Index rose 0.31% to 4942.

On the data front, Australia NAB Business Confidence will be released at 11:30 AEDST. China CPI and PPI data will be out an hour after.

Have a great trading day!
Anthony


Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Vantage FX Pty Ltd, does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. The research contained in this report should not be construed as a solicitation to trade. All opinions, news, research, analyses, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently any person acting on it does so entirely at their own risk. The experts writers express their personal opinions and will not assume any responsibility whatsoever for the actions of the reader. We always aim for maximum accuracy and timeliness and Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on the service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.

Social

Free Daily Market Update

Live Spreads

SymbolBidAskSpread

Spread

Sign up to the latest forex news and daily FX trading setups

Get started with a FREE $50,000 demo account