US Dollar restarts rally as Yen depreciation confirmed

February 12, 2015

The US Dollar surged against major peers yesterday and the USD Index reached the February high of 95.20. Not much material news happened during the session. Europe is in focus as their leaders are trying to solve both the Greek and Ukrainian crisis at the same time, while US President Obama has claimed to hit IS troops.

USDJPY kept its rally by 0.7% to 120.28 along with the gain of US treasury yields. As the breakout has been confirmed, market participants may now turn their former sideways view into a bearish one on JPY. The former highs 120.80 and 121.80 are the next two targets. However, the currency pair may not stop by there but challenge the high set before the global financial crisis at 124.10.

>USDJPY 120215 | Vantage FX

While investors are still waiting for the confirmed results from Europe, Gold fell 1% and hit the resistance of $1220 per ounce, probably due to the strong Dollar largely reducing the attraction of yellow metal. RSI has fallen below 50, showing this round of fall possibly continuing. Gold prices may reach the lower boundary of the recent slow upward channel area near $1190-1200.

XAUUSD 120215 | Vantage FX

The Aussie Dollar finally broke the bottom of a one-week sideway at 0.7730 and fell to the 0.77 mark. A new round of falling has started and former low 0.7626 may not hold the bears’ attack for long. As the China’s import remains weak and investors lose interest in carry trades, AUDUSD will find it impossible to defy gravity. The 0.75 level may be the target after 0.7626 breached.

AUDUSD 120215 | Vantage FX

Back to stock markets, the Shanghai Composite rebounded 0.5% to 3157. The Nikkei Stock Average slid 0.33%. Australian ASX 200 lost 0.54% to 5769. In European markets, the UK FTSE was down 0.16%, the German DAX closed as unchanged and the French CAC Index fell 0.36%. US stocks closed as mixed. The S&P 500 closed at 2069. The Dow fell 0.1% to 17862, and the Nasdaq Composite Index rose 0.28% to 4800.

On the data front, Australian job market data will be out at 11:30 AEDST. BOE Inflation Report will be released 21:00 AEDST. US retail sales and weekly unemployment claims will be at 0:30 AEDST after midnight.

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