Forex Daily News: July 5, 2010 – US Jobs Data Sends Dollar Down

Posted by admin on July 5, 2010 under daily forex analysis, Daily Forex review, daily technical anlysis, forex market, Forex Trader Review, Online Forex Review, Uncategorized | Be the First to Comment

USD Dollar (USD) – The Dollar weakened against most of the major currencies after the NFP report showed worse than expected data while job losses came out -125k vs. expected -100k. The Unemployment Rate came out 9.5% better than expected 9.8%. Stocks in the US fell with NASDAQ and Dow Jones falling by -0.46% and -0.47% respectively. Crude oil fell for a fifth day in a row hardly managing to close at 72.2$ a barrel. Gold (XAU) recovered a little from its previous losses and closed at 1211$an ounce. Today, US banks will be closed in observance of Independence Day, low liquidity might cause to irregular volatility in the market.

Euro (EUR) – The Euro rose further against the Dollar after the release of the US employment report hitting a 6 week high and extending its rally. The Unemployment Rate came out 10% better than expected 10.1%. The PPI came out unchanged at 0.3% as expected. Trading above the support level of 1.2470 keeps the momentum positive for the pair. Overall, EUR/USD traded with a low of 1.2480 and with a high of 1.22610. Today, the Retail Sales are expected at -0.1% vs. -1.5% previously.

EUR/USD – Last: 1.2544

British Pound (GBP) – After the NFP data came out in US the Sterling has reached 8 week fresh high at 1.5228 but shortly fell below the 1.52 zone. The Construction PMI came out 58.4 worse than expected 58.6. Trading above the support level of 1.5120 keeps the momentum positive for the pair. Overall, GBP/USD traded with a low of 1.5148 and with a high of 1.5228. Today, the Service PMI is expected at 55.2 vs. 55.4 previously.

GBP/USD – Last: 1.5179

Japanese Yen (JPY) – The Dollar recovered versus the Yen after the NFP data came out while attempting to rise back above the 88 zone. Breaching the 87.8 level will turn the momentum to positive for the pair. Overall, USD/JPY traded with a low of 87.31 and with a high of 88.20. No economic data is expected today.

USD/JPY-Last: 87.90

Canadian dollar (CAD) – The US Dollar rose in Forex Trading versus the Canada’s Dollar as investors observed contrarian figures in the US Labor sector. The loss on jobs but decrease in unemployment rate added upside momentum to the pair. Trading above the support level of 1.0530 keeps the momentum positive for the pair. Overall, USD/CAD traded with a low of 1.0554 and with a high of 1.0666. No economic data is expected today.

USD/CAD-Last: 1.0606

Forex Market review – The Dollar Index’s lowest daily close in six weeks

Posted by admin on June 27, 2010 under daily forex analysis, Daily Forex review, forex market | Be the First to Comment

Forex Market review

This Friday saw the Dollar Index’s lowest daily close in six weeks. The level of overall forex trading investor sentiment and the strength of the USD’s own fundamental backdrop will influence the Greenbuck, as both of these subjects are facing dramatic changes with a scheduled G20 meeting, deteriorating financial conditions in already unstable economies and the prominent risk of a negative nonfarm payroll reading on Friday. 

While risk appetite level, the relative economic health and level of yields behind the greenback are in flux, the currency’s status as a safe haven can easily overwhelm most other concerns that develop along the way.

GoLearn Forex Analysis 17/12/2009

Posted by TomShort on December 17, 2009 under daily forex analysis | Be the First to Comment

Is the CAD Headed for a Breakout?  By GoLearn Forex

USD/CAD:

The Canadian Dollar from a technical standpoint is giving every indication it is going to breakout.   Price has been consolidating for several weeks.  You can see more clearly the consolidation in the Chart below depicted by the orange triangle.

Typically we draw a triangle where only one side represents the slope.  However, the triangle drawn below is indicative of investor’s uncertainty with regards to the CAD.  The Canadian economy is holding strong.  The CAD is a commodity currency and will rise and fall as commodity prices rise and fall (in particular Oil).  The Dollar has been rallying which should mean a weaker Loonie, but this rally stems from positive U.S economic data.  The U.S economy and that of their northern neighbor are linked to a certain extent as they feed off of one another.  Therefore, positive U.S data should also be good for the CAD.  Therein lies the conflict and thus you have a dual sided sloping triangle.

The CAD is currently trading above its 50 day MA.  Similar to the AUD and NZD it failed to breach the 100 day MA in spite of the Dollar rally.  As the CAD wedges itself into the triangle we are looking for the following to occur in order to trip an entry signal.  If the Loonie produces a candle south of the 50 day MA and south of the bottom slope of the triangle then look to enter a Long CAD position.  Alternatively, if the CAD produces a candle body north up the upper slope of the triangle and the 100 day MA then enter a Short CAD position.  Lastly, if a Short CAD signal triggers we see a near term take profit level at 1.0880 coinciding with the Fibonacci 23.6% Retrace level.  We view this level as strong point of resistance.

Oil Takes Off by GoLearn Forex

The FOMC meeting came and went without stirring the waters.  In the Euro-zone and London, Equity Markets finished their sessions in positive territory ahead of the highly anticipated U.S FED rate decision.  The accompanying FOMC statement was intentionally left mostly unchanged so as not to roil markets. It served its purpose well as the DJIA finished the day off slightly lower by 10.88 points to close at 10,441.12 while the tech heavy NASDAQ closed up 5.86 points to 2,206.91.

In the Currency Markets the Dollar followed Equity Markets finishing the session nearly flat against its G-7 counterparts.  The AUD gave up .61% still reeling from CB comments that took on a more dovish tone in regards to any near term future rate hikes.

Oil soared to 73.54 during intra-day trading before leveling off the day at 72.66, a gain of $1.97.  Gold climbed $12.70 an ounce to 1,137.90.  On the Agricultural front Soybeans, Cotton and Sugar continued to rally while Copper, Wheat and Corn declined on Dollar strength.

On the economic data docket for today we have the BOJ rate decision to be announced, although no change is expected.  In the U.K, Retails Sales are set to be released while in Canada CPI data will hit the wire.  In the U.S, Jobless Claims will print as will the measure of Leading Indicators and the Philadelphia FED survey.

Upcoming Forex Events for December 17, 2009

GBP  Retail Sales (MoM) Forecast  0.50%  Previous  0.40%

CAD  Core CPI (MoM) Forecast  0.10%  Previous  0.10%

USD Initial Jobless Claims Forecast    470.00K  Previous  474.00K

JPY Interest Rate Decision  Forecast  0.10%  Previous  0.10%

Analysis by http://www.golearnforex.net