USD Currency Pair 2015
The part of short positions of US dollar in the European currency remains high
EUR/USD attempts to turn higher wasn’t successful: the recovery was once again stopped on the approach to 1.0640, and in the beginning of the European session the pair fell to bids around 1.0580.
It has continued to sell on growth now, and such a behavior of the market is understandable: the yields spread of two-year American and German bonds continues to grow and currently reaches 1.38%, and this occurs due to both the growth of negative yields on German securities (-0.443%) and the increase of treasury yield, where the impulse to break the resistance is around 0.95%.
However, it is worth noting that, despite the developments in the bond market, the EUR/USD is not about to update the lows, and the upcoming ECB meeting remains a factor that can provide some pressure weakening on the Euro.
The market in recent days has laid a lot more aggressive evaluation of the outcome of the ECB meeting. The latter, indeed, may take active measures, but it seems that ECB has to take a real radical position to provide the push for a tangible and sustained fall in the Euro from the current levels.
The upward correction risks remain significant. At least, it is worth remembering that the market lives with expectations, and the rule "buy the rumor, sell the fact" works quite correctly.
The positive effect of the Fed rate hike for the JPY / USD currency pair 2015 was short-lived: the growth once again was stopped close to 123.50, and then the pair turned sharply lower as a reaction to the correction of stock indices, and in recent days it demonstrates a stable thrust to the reduce development.
From the point of view of yield differentials, the situation has not suffered from significant changes, and the dealers blame disappointed speculators for the decline, who hoped for the development of the uptrend, as well as imposing certain expectations on position softening by the Bank of Japan.
Moreover, the increased interest to the profit fixation at the end of the year also has an effect, and dealers do not rule out the development of short term decline of JPY / USD currency pair 2015. The pair currently traded near 120.37, and the bids near 120.25/20 and 120.00 are remained in focus. The figures loss could have a negative impact on the morale and could ensure the development of a correction in the direction of 118.
However, in order to make bulls lose their ground the market should see a huge drop in risk appetite and if it’s not the attempts to reduction will probably continue to attract interest in buying. Differential rates remains a supportive factor for the pair, while Japanese investors remain interested in foreign assets.
The new decline in oil prices on Monday triggered another round of weakening of the ruble and led not only to the breakdown of the August high, but also to the dynamic growth of the pair USD/RUB on more than 200 points to 72.64. In addition, the technical analysis of crude oil prices points to further decline, which would inevitably increase the pressure on the ruble.
At the end of trading in New York, the Canadian dollar traded lower by 0.6%, reaching 11-year lows against the US dollar. CAD / USD currency pair 2015 was trading at 1.3578. The Norwegian krone and Mexican peso also fell against the US dollar.