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23 Apr 2014
Session Recap: EUR/USD advances in a low volatility environment
FXStreet (San Francisco) - The currency market is moving slow and quiet these days as volatility indexes are showing multi-year lows; the EUR/USD posted daily gains after four days.
The JPMorgan G7 Forex volatility index declined to 6.63% today, its lowest level since June 2007. Investors are reluctant to take positions as central banks remain neutral and with no big news/changes in its monetary policies.
"Policy and the Fed is on auto-pilot at least until Yellen & Co begin considering raising rates around this time next year," ForexLive.com's analyst Adam Button commented in a recent piece. The BOJ is in no hurry to print, the ECB is reluctant to cut and the BOC has been on the sidelines forever."
The EUR/USD declined hard from 1.3825 to bottom at the 50% Fibo retracement of the April 4/11 rally at 1.3785. However, the pair bounced at this level and it recovered above the 1.3800 area where it closed the day.
"At this point, seems like while buyers are still defending the downside, they are also reluctant to push it higher amid ECB’s officers jawboning from the past weeks," comments Valeria Bednarik from FXStreet, "and there is a good chance the pair will remain range bound until upcoming Central Bank meeting brings light on economic policies."
On other pairs, the GBP/USD accelerated Tuesday as the cable closed above the 1.6800 level for the first time since November 2009. The US dollar versus Japanese Yen exchange rate advanced for seventh day in the last eight to close at 102.60.
Main headlines in the American Session
Canadian Feb wholesale sales rise 1.1%
US home prices rise 0.6% in Feb m/m: FHFA
United States Richmond Fed Manufacturing Index beat expectations (0) in April: Actual (7)
US: Existing Home Sales down to 4.59M in March
Wall Street rose on Tuesday amid risk appetite
The JPMorgan G7 Forex volatility index declined to 6.63% today, its lowest level since June 2007. Investors are reluctant to take positions as central banks remain neutral and with no big news/changes in its monetary policies.
"Policy and the Fed is on auto-pilot at least until Yellen & Co begin considering raising rates around this time next year," ForexLive.com's analyst Adam Button commented in a recent piece. The BOJ is in no hurry to print, the ECB is reluctant to cut and the BOC has been on the sidelines forever."
The EUR/USD declined hard from 1.3825 to bottom at the 50% Fibo retracement of the April 4/11 rally at 1.3785. However, the pair bounced at this level and it recovered above the 1.3800 area where it closed the day.
"At this point, seems like while buyers are still defending the downside, they are also reluctant to push it higher amid ECB’s officers jawboning from the past weeks," comments Valeria Bednarik from FXStreet, "and there is a good chance the pair will remain range bound until upcoming Central Bank meeting brings light on economic policies."
On other pairs, the GBP/USD accelerated Tuesday as the cable closed above the 1.6800 level for the first time since November 2009. The US dollar versus Japanese Yen exchange rate advanced for seventh day in the last eight to close at 102.60.
Main headlines in the American Session
Canadian Feb wholesale sales rise 1.1%
US home prices rise 0.6% in Feb m/m: FHFA
United States Richmond Fed Manufacturing Index beat expectations (0) in April: Actual (7)
US: Existing Home Sales down to 4.59M in March
Wall Street rose on Tuesday amid risk appetite