Daily Forex News & Analysis – 27 May 2013


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The dollar traded overall up on Friday after Durable Goods Orders exceeded expectations, showing a rise of 3.3% in April when only a 1.5% rise had been expected, fuelling speculation the Fed might begin tapering its asset purchases. The greenback ended the day at 1.2931 to the euro and 101.28 to the yen.


The euro fell on Friday despite positive sentiment data from IFO which showed an overall rise in economic optimism, as fears of stimulus tapering weighed on risk appetite. The single currency ended the day at 1.2931 to the dollar and 131.01 to the euro.


The pound traded mixed on Friday after GDP figures continued to show anaemic real growth and  recent BOE minutes revealed 3 board members still voted for more QE. Sterling ended the day at 1.5124 to the dollar and 0.8549 to the euro.


The yen rose on Friday as a result of safety flows after fears increased that the Fed might switch off its stimulus tap. The yen ended the day at 101.28 to the dollar and 153.15 to the pound. Today’s data includes Corporate Service Prices which are expected to show a -0.2% fall year-on-year.


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I am a forex analyst, trader and writer. I have had a career writing articles for websites and journals, starting in the travel sector and then in Forex. I use a combination of technical and fundamental analysis in my forecasting. When I joined Forex4you in 2010 I thought it was a great opportunity to work as an analyst for an international broker. I provide technical forecasts with clear entry points and targets as well as articles on fundamental and trading themes. Good luck and happy trading!