Merrill Lynch: USD/JPY to Test 14-Year Low

The US dollar may trade at a 14-year low against the Japanese yen, as diverging monetary policies between the Federal Reserve and the Bank of Japan take hold, according to Bank of America Merrill Lynch. The Fed may take additional easing steps in its monetary policy decisions, owing to a US economy that has, in… Continue Reading

BNP Paribas: USD/JPY Heading to 84.95

The US dollar may trade at an eight-month low against the Japanese yen, as concerns of a faltering US economy mount, according to BNP Paribas. Hans-Guenter Redeker, head of global currency strategy at the firm, notes that Japan has been pulling money out of the Treasury market at the fastest pace in two years, as… Continue Reading

Karen Jones: EUR/USD May Reach 1.35

The euro may strengthen to 1.35 against the US dollar based on technical indicators, according to Commerzbank. Karen Jones, head of fixed-income, commodity and currency analysis at the bank, writes that while the 1.30 handle may “cause the market to pause near term,” an inverse head and shoulders pattern”offers a minimum upside measured target to… Continue Reading

USD/CAD: 130 Pips Downside to 1.0160; Short-Term

The USD/CAD is exhibiting a strong downward bias from present levels, following a key break below the 1.03 handle. Last priced at 1.0295, the USD/CAD has immediate downside toward the 1.0210 level. The decline may extend to 1.0160 on a successful break of the 1.02 handle. Upward resistance may be found at the 1.0390 level,… Continue Reading

EUR/USD Breaches Key Resistance; 1.30 Upside

The euro has breached a key medium-term resistance level against the US dollar and may see upside toward the 1.30 handle in the days ahead. The risk trade appears to be in full force at this hour, with the major gauges all pointing to further demand for the worst-beaten assets in recent months. Among others… Continue Reading

Barclays: Euro May Fall to 1.23 Against US Dollar

The euro may decline to 1.2305 against the US dollar if  the pair fails to break through its “cloud resistance” on the daily ichimoku chart, according to Barclays Capital. The cloud resistance level of 1.2785, which remains in effect through July, has yet to be meaningfully tested. According to Philip Roberts, an analyst at Barclays… Continue Reading

UBS: Sell British Pound Against Dollar – 1.40

Investors should sell the British pound against the US dollar, as the pair is set to depreciate to the 1.40 level, according to UBS. Garreth Berry, UBS currency strategist in Singapore, advises that “there are seven reasons to sell the sterling.” Among those reasons are the following: “The rest of the Bank of England Monetary… Continue Reading

Commerzbank: USD/JPY May Rise to 90.60

Karen Jones, top analyst at Commerzbank, sees the US dollar appreciating to 90.60 Japanese yen, should support hold above the 87.15 and 87.00 levels. According to Ms. Jones, the 87.15 level represents the lows made in December 2008 and January 2009. The 87.00 level, on the other hand, is the 78.6% Fibonacci retracement from the… Continue Reading

Swiss Bank Likely to Intervene at EUR/CHF 1.30

The Swiss National Bank will likely resume its intervention efforts aimed at weakening the franc relative to the euro once the 1.30 level is reached. Sluggish Swiss CPI suggests that deflationary risks still threaten the domestic economy, against which the SNB will take action via the EUR/CHF. The 1.30 handle is the whisper number circulating… Continue Reading

EUR/USD Heading Higher on Favorable Intraday Setup

The EUR/USD is trading higher at this hour, with the charts showing a favorable setup for further gains on an intraday basis. Last priced at 1.2625, the EUR/USD appears to have upside from present levels, though will face a slight test at 1.2666. A successful breach of that level would lead to additional gains with… Continue Reading