FXCC
FXCC FXCC FXCC
FXCC FXCC FXCC FXCC FXCC FXCC FXCC FXCC FXCC
MARKET UPDATE 13.05.2013

2013-05-13 04:20 GMT

Japan rests re-assured not labeled 'currency manipulator' by G7

Over the weekend, the G7 re-assured the market that Japan is not deliberately weakening the yen in order to create a competitive advantage against other industrialized nations. The group repeated its old same lines about its commitment to avoid artificial currency devaluation for domestic gain purposes, while re-iterating its commitment to avoid volatility in FX rates. According to Mike Paterson, editor at Forexlive: "The general consensus seems to be they accept Japan’s arguments that their dramatic easing on monetary policy is aimed at combating deflation rather than weaker currency advantage." Mr. Paterson thinks the last developments in the G7 meeting "should be the green light for further yen selling when markets re-open given that it takes the uncertainty out of the equation but the announcement was hardly a surprise" he said.

It will be interesting to see just how much weaker it gets in the early stages. Failure to drop too far will suggest that there rightly should be an air of caution after such rapid falls. But as the say goes, all that glitters is not gold, and US, Canada and Germany were all suspiciously more notorious on voicing out a closer monitoring over Japan's next policy actions. As Mr. Paterson rightly points out, "behind the scenes of G7, sure there is not such a united front as they wish to portray." U.S. Treasury Secretary Jack Lew had something to say on yen weakness: “We’ll keep an eye on that”, suggesting that any signs of currency manipulation by Japan will be watch very closely, adding that Japan had “growth issues.” Japan's Finance Minister Mr. Aso confirmed to media reporters that no criticism was noted on Japan’s monetary easing.-FXstreet.com

24h

EMU. Eurogroup meeting

2013-05-13 12:30 GMT

USA. Retail Sales

2013-05-13 14:00 GMT

USA. Business Inventories (Mar)

2013-05-13 22:45 GMT

New Zeland. Retail Sales

2013-05-13 04:32 GMT

EUR/USD uncomfortable below 1.30, further definition needed

2013-05-13 04:21 GMT

USD extends gains; Gold takes a hit

2013-05-13 03:34 GMT

Gold selling off sharply below $1430

2013-05-13 03:24 GMT

USD/JPY, expect little pullback in the high 101s - RBS

AUDUSD
0.99944 / 948
NZDUSD
0.83059 / 072
USDCHF
0.95761 / 770
USDCAD
1.01236 / 244
GBPJPY
156.058 / 073
EURCHF
1.24324 / 333
GOLD
1437.12 / .47
SILVER
23.71 / .75
EURUSD HIGH 1.29781 LOW 1.29595 BID 1.29756 ASK 1.29758 CHANGE -0.12% TIME 08:04:42

OUTLOOK SUMMARY

Down

TREND CONDITION

Down
trend

TRADERS SENTIMENT

Bullish

IMPLIED VOLATILITY

Medium

MARKET ANALYSIS - Intraday Analysis

Upwards scenario: Neutral hourly studies point towards further consolidation, with a break of next resistive structure at 1.3011 (R1) is required to spark stronger upside action. In such scenario we would suggest our next initial targets at 1.3036 (R2) and 1.3062 (R3). Downwards scenario: Medium-term bias is clearly negative. Possible progress below the initial support level at 1.2957 (S1) might expose our intraday targets at 1.2934 (S2) and then 1.2909 (S3).

Resistance Levels: 1.3011, 1.3036, 1.3062

Support Levels: 1.2957, 1.2934, 1.2909

GBPUSD HIGH 1.53578 LOW 1.53357 BID 1.53519 ASK 1.53529 CHANGE -0.07% TIME 08:04:42

OUTLOOK SUMMARY

Down

TREND CONDITION

Down
trend

TRADERS SENTIMENT

Bullish

IMPLIED VOLATILITY

Low

Upwards scenario: GBPUSD is consolidating today however we see potential for further appreciation towards to our targets at 1.5403 (R2) and 1.5429 (R3) if the price manages to overcome key resistance measure at 1.5377 (R1). Downwards scenario: Next support level is seen at 1.5334 (S1), any penetration below it might activate further downside pressure and enable lower target at 1.5310 (S2). Any further market decline would then be limited to final support at 1.5284 (S3).

Resistance Levels: 1.5377, 1.5403, 1.5429

Support Levels: 1.5334, 1.5310, 1.5284

USDJPY HIGH 102.151 LOW 101.74 BID 101.751 ASK 101.752 CHANGE 0.14% TIME 08:04:43

OUTLOOK SUMMARY

Up

TREND CONDITION

Up
trend

TRADERS SENTIMENT

Bearish

IMPLIED VOLATILITY

Low

Upwards scenario: Further uptrend development is possible above the next resistance level at 102.18 (R1). Break here would open route towards to higher target at 102.65 (R2) and any further price advance would then be limited to 103.12 (R3). Downwards scenario: On the other hand, a break of the support at 101.44 (S1) is required to determine negative intraday bias and enable lower target at 101.01 (S2). Clearance of this target would open a path towards to final support for today at 100.57 (S3).

Resistance Levels: 102.18, 102.65, 103.12

Support Levels: 101.44, 101.01, 100.57

MARKETING COMMUNICATION DISCLAIMER: The content of this material is a marketing communication, and not independent investment research. As such, the legal and regulatory requirements in relation to independent investment research do not apply to this material and it is not subject to any prohibition on dealing ahead of its dissemination.

The material is for general information purposes only (whether or not it states any opinions). It does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) legal, financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by FX Central Clearing Ltd. (“FXCC”) or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

Although the information set out in this marketing communication is obtained from sources believed to be reliable, FXCC makes no guarantee as to its accuracy or completeness. All information is indicative and subject to change without notice and may be out of date at any given time. Neither FXCC, nor the author of this material shall be responsible for any loss that you may incur, either directly or indirectly, arising from any investment based on any information contained herein.

This material may include charts displaying financial instruments' past performance as well as estimates and forecasts. Any information relating to past performance of an investment does not necessarily guarantee future performance.

Unless otherwise stated, the prices used in the examples are FXCC’s own prices, and not those of third parties.

RISK WARNING: Trading in Forex and Contracts for Difference (CFDs) is highly speculative and involves substantial risk of loss. It is possible to lose all your capital. Forex and CFDs may not be suitable for all investors. Only invest with money you can afford to lose. Please ensure you fully understand the risks involved before investing. Seek independent advice if necessary.