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Today’s Live Show: Big Trading Week Ahead for the USD, EUR and GBP

Posted in Uncategorized by forextradingmarkett on January 5, 2010
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Forex traders, join the daily All Things Forex broadcast- a live one hour program covering Forex and major economic events, trend developments, research, analysis, ideas, education, live traders forum, interviews with some of the most respected names in the trading world, and much more.. In the broadcast today: Big Trading Week Ahead for the USD, EUR and GBP. We list the Top 10 economic events that will be crucial for the future fate of the USD, the EUR and the GBP in the

Todays Live Show: Big Trading Week Ahead for the USD, EUR and GBP

Todays Live Show: Big Trading Week Ahead for the USD, EUR and GBP

Todays Live Show: Big Trading Week Ahead for the USD, EUR and GBP Todays Live Show: Big Trading Week Ahead for the USD, EUR and GBP Todays Live Show: Big Trading Week Ahead for the USD, EUR and GBP

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Currency News – Friday, 11 December 2009 December 20th, 2009

Posted in Uncategorized by forextradingmarkett on December 27, 2009
Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Economic News

USD – USD Mixed Against Major Currencies

The Dollar experienced a mixed trading day yesterday, advancing on the Yen but staying little changed against the EUR and U.K. pound. The dollar rose above 76 earlier and lately bought 75.996 and compared to 75.987 on Wednesday. The USD dropped as much as 1.3% versus the New Zealand while the Australian Dollar rose 1.1% against the greenback.

The number of people in the U.S. receiving unemployment insurance continues to decline, dropping to the lowest level since February. The US trade Deficit also declined unexpectedly as a weak Dollar boosted exports oversees.

Looking ahead for today, the US Retail Sales is expected to be released at 13:30 GMT and the Prelim UoM Consumer Sentiment at 14:55 GMT. With mostly better than expected economic data seen lately from the U.S., worse than expected results might prove quite volatile for the USD pairs.

EUR – EUR under Pressure over Ratings Concerns

The EUR was under pressure Thursday over concerns of high debt levels of some of its member countries. Greece had its rating downgraded and Spain had its outlook lowered to negative. Portugal was also warned of a possible downgrade. Late Thursday the EUR was unchanged at $1.4730 and at 129.94 Yen from 129.41 Yen. The Pound was at $1.6274 from $1.6270.

The currency posted little reaction to Thursday’s decision by the Bank of England to leave its key lending rate unchanged at a record low 0.5%. The Bank of England also maintained its asset-buying program at 200 billion pounds ($326 billion), in line with the economists’ forecasts.

While positive economic data continues to come from Germany, Euro-Zone’s largest economy concerns about sovereign ratings in the Euro-Zone’s smaller countries and the potential for choppy economic growth seem to be putting downward pressure on the EUR at the moment, possibly pushing it even lower against the USD.

JPY – Yen Declines as Risk Appetite Returns

As the stream of positive economic data from the U.S continues, the Yen continues to decline against the Dollar as well as riskier currencies as demand for higher-yielding assets returns. The Yen traded at 129.97 per EUR in today’s early trading, after weakening 0.4% yesterday and was at 88.43 against the Dollar. With a return to risk appetite, the JPY returns to be the primary funding currency.

OIL – Oil Prices Decline for 7th Day

Crude levels declined for a seventh straight day, ending at a two month low Thursday as concerns of oversupply and low demand persist. Light, sweet Crude Oil for January delivery on the New York Mercantile Exchange settled down 13 cents at $70.54, the lowest level since Oct. 7th.

With renewed attention to supply and demand, confidence that demand in the world’s biggest energy-consuming country is recovering is deteriorating. With gasoline supplies at the highest level since April and a stronger Dollar, investors’ appetite for commodities continues to decline. With few fundamentals supporting high Oil prices, there is room for Oil level to decline further.

EUR/USD GBP/USD USD/JPY USD/CHF AUD/USD EUR/GBP
Daily Trend down up up down up down
Weekly Trend up up no down no down
Resistance 1.4890 1.6525 90.10 1.0360 0.9245 0.9096
1.4825 1.6425 89.75 1.0335 0.9225 0.9075
1.4775 1.6380 89.25 1.0300 0.9190 0.9055
Support 1.4665 1.6225 88.25 1.0235 0.9115 0.9020
1.4610 1.6160 87.75 1.0195 0.9075 0.9008
1.4530 1.6075 87.40 1.0165 0.9255 0.8990

Technical News

EUR/USD

There is a fresh bullish cross forming on the daily chart’s Slow Stochastic indicating a bullish correction might take place in the nearest future. The upward direction on the hourly chart’s Momentum oscillator also supports this notion. When the upward breach occurs, going long with tight stops appears to be preferable strategy

GBP/USD

The daily chart is showing mixed signals with its RSI fluctuating at the neutral territory. However, the 1 hour Chart’s RSI is already floating in the overbought territory indicating that a bearish correction might take place in the nearest future. When the downwards breach occurs, going short with tight stops appears to be preferable strategy.

USD/JPY

The pair’s bullish momentum continues with full steam, as it crossed the 88.80 level yesterday, and seems ready to test the 89.25 level. Should a breach occur, another bullish move might take place.

USD/CHF

The typical range trading on the hourly chart continues. Both the RSI and Slow Stochastic are floating in neutral territory. The hourlies are also providing mixed signals with no specific direction. Good strategy might be to wait for a clearer signal before entering the market in this pair.

The Wild Card

Silver

Silver prices are testing new lows on a daily basis now as a breach through $17.75 was made yesterday. The daily chart shows that the price has lowered beneath the Bollinger Bands, indicating that the downtrend has more room to go. This could give forex traders a great opportunity to enter a very promising trend.

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Currency News – Wednesday, 16 December 2009 December 20th, 2009

Posted in Uncategorized by forextradingmarkett on December 27, 2009
Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Economic News

USD – Dollar Trades Higher vs. EUR on Rate Outlook

The U.S dollar held near a 2-? month high on the EUR and kept a firmer footing against the Japanese yen on Wednesday as the market waited to see if the U.S. Federal Reserve would give any signal on when Interest Rates might begin to rise.

The greenback was near a 1-week high against the Yen before reports forecast to show U.S. housing starts rebounded and consumer prices gained. Traders increased bets that the Fed will raise its policy rate by June as the Federal Open Market Committee (FOMC) began a 2 day rate-setting meeting.

The U.S dollar traded at $1.4542 per EUR from $1.4538 yesterday when it reached $1.4504, the strongest level since Oct. 2nd. The U.S. currency was at 89.58 yen from 89.61 yesterday after reaching 89.95, the strongest level since Dec. 7th.

Fed policy makers are expected to keep benchmark rates steady and retain the vast majority of the forward-looking portions of its statement on the economy due this afternoon. With data pointing to the upside in the U.S. economy, there is a growing speculation that there will be a change in rhetoric on monetary easing. Analysts said investors were keen to close short positions built up in the Dollar all year before 2009 book closings and that this may support the USD for the rest of the week and into next.

EUR – EUR Falls Broadly on Bank Concerns

The EUR was under pressure amid worries about the health of Austria’s financial institutions after a report that the country’s fourth-largest financial institution was facing capital problems. The single currency fell on Tuesday on Euro-Zone bank concerns and data suggesting growth in the region remained weak, while a slip in German economic sentiment also prompted traders to dump the single currency. The Austrian news added to worries over debt in Greece and Dubai, putting more pressure on the European currency.

The EUR held steady at $1.4525 in early Asian trade, after falling nearly 1% the previous day and hitting $1.4503; its lowest since early October. Against the British Pound, the EUR traded at 89.35 pence from 89.36 yesterday when it dropped 0.6%. The European currency may fall for a 5th day versus the Pound as Greece struggles to address concerns that it isn’t doing enough to reduce its debt, and as Austria has nationalized Hypo Alpe-Adria Bank International AG.

Demand for the EUR broadly weakened after a European Central Bank (ECB) council member said he sees no need to raise Interest Rates in the first half of 2010 as inflation pressures stay muted. A report by Austria’s Die Presse which said monetary authorities had put Oesterreichische Volksbanken, the nation’s No. 4 bank, on a watch list also knocked the EUR. The bank said the report was inaccurate. Still, risk-averse traders sold the currency following the report, which came a day after Vienna said it would nationalize one of its banks to avoid a collapse.

JPY – JPY Falls on Dubai Default Concerns

The Japanese yen fell against 12 of its 16 major counterparts as easing concern of a default in Dubai curbed demand for the Japanese currency. Abu Dhabi yesterday pledged $10 billion of aid to Dubai, allowing Dubai World’s real-estate unit to avoid default on $4.1 billion of bond payments.

With a vast majority of economic news today focusing on Europe and the United States, the Japanese Yen may take a backseat to today’s other major currencies. If the USD can hold its recent strength, and if the EUR continues to fall amid international concerns such as Greece and Dubai’s recent woes, then the JPY may also continue its recent trends.

Crude Oil – Crude Advances on U.S. Industrial Output

Oil prices were near $71 a barrel Wednesday, after rising for the first time in 10 days, on a report that U.S. factories churned out more goods in November than anticipated, a signal that fuel demand will increase.

Crude Oil traded at $70.78 a barrel, up 9 cents. Yesterday, the commodity rose $1.18, or 1.7%, to settle at $70.69. Oil gains were pared after the American Petroleum Institute reported yesterday that crude inventories rose by 924,000 barrels last week.

Crude Oil posted a 1.7% gain, ending a 9-session losing streak, as the Organization of Petroleum Exporting Countries (OPEC) lifted its global demand forecast. Traders also bet on a drop in U.S. inventories but the API estimated these rose by 924,000 barrels last week. The Energy Information Administration will release its more closely followed report Wednesday at 15:30 GMT.

EUR/USD GBP/USD USD/JPY USD/CHF AUD/USD EUR/GBP
Daily Trend up down down down down no
Weekly Trend down down up up down down
Resistance 1.4643 1.6334 90.36 1.0508 0.9037 0.9009
1.4611 1.6302 90.03 1.0476 0.9016 0.8988
1.4580 1.6271 89.72 1.0445 0.8995 0.8967
Support 1.4498 1.6208 89.11 1.0384 0.8954 0.8925
1.4466 1.6177 88.80 1.0352 0.8931 0.8903
1.4432 1.6146 88.48 1.0321 0.8910 0.88.81

Technical News

EUR/USD

This pair is giving off mixed signals between the hourly and 4-hour charts. On the hourly side there appears to be a bearish cross on the Stochastic (slow) while the RSI has also entered the over-bought territory. However, the 4-hour chart shows the RSI in the over-sold territory and a fresh bullish cross on the Stochastic (slow). This pair is definitely awaiting a volatile movement with tightening Bollinger Bands on the hourly chart, but the direction is uncertain. Waiting for a clearer signal may be a wise choice.

GBP/USD

With many indicators floating in the neutral territory, and as this pair continues to float inside a flat trading range, it may also be wise to wait for a more clear indication of direction. However, there do appear to be bullish crosses on both the hourly and 4-hour MACDs, which suggest an impending upward movement. Going long may not be a bad tactic for the next few hours.

USD/JPY

There appear to be fresh bearish crosses on the hourly and 4-hour MACD indicators, suggesting an impending bearish move. Another bearish cross has been completed on the 4-hour Stochastic (slow) and the price is now slowly cascading downward. Going short today may be the best strategy.

USD/CHF

The price of this pair appears to be floating in the over-bought territory on the 4-hour RSI, suggesting downward pressure. With bearish crosses on the hourly and 4-hour MACD, as well as on the 4-hour Stochastic (slow), a downward movement seems imminent. Going short may be a good choice.

The Wild Card

GBP/CHF

The Bollinger Bands on the hourly chart have begun to tighten which suggests a volatile movement is impending. There appear to be fresh bearish crosses on the 4-hour and daily charts’ Stochastic (slow) and the price is also floating in the over-bought territory on the daily RSI, all suggesting a strong bearish expectation. Forex traders won’t want to miss out on what appears to be an imminent downward movement on this pair.

// Popularity: 4% [?]

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Currency News – Thursday, 17 December 2009 December 20th, 2009

Posted in Uncategorized by forextradingmarkett on December 27, 2009
Tags: , , , , , , , , , , , , , , , , , , , , , , , , , ,

Economic News

USD – Dollar Makes Big Gains Following FED Statement

The USD got another boost Wednesday evening after the Federal Reserve Bank (FED) issued a statement saying that there are definite signs that the American economy is on its way to recovery. While the FED stopped short of raising record low interest rates, the positive statement was enough to boost the Dollar against both the EUR and Yen.

Going into trading today, Dollar levels will most likely be effected by this weeks U.S. unemployment claims, set to be released at 13:30 GMT. With most analysts predicting a number around 465K, the news should be good for the greenback, as it would be relatively unchanged from last week’s figure. That being said, if the figure unexpectedly jumps and lands at around the 500K level, investors may lose faith in the pace of the American recovery. This may lead to a decline in the USD, and would result in positive gains for the EUR.

EUR – EUR Drops Below $1.4500

The EUR fell well below the psychologically important 1.4500 mark against the U.S. Dollar in early morning trading, and is currently trading around the 1.4465 level. The decline in value for the European currency can largely be attributed to continuous debt concerns among several Euro nations, as well as the upbeat news coming out of America.

Against the Yen, the EUR dropped in early morning trading, and is currently priced at 129.92. With most investors flocking to the safe haven currencies such as the Dollar and Yen, the EUR/JPY pair may decrease further today.

With no major news events regarding the Euro scheduled for today, traders will have to look to other sources to determine which way the troubled currency is headed. The U.S. unemployment figures are one indicator. If the figures come in as expected and investors are encouraged by America’s pace of recovery, the Euro will likely drop further in afternoon trading. On the other hand, the Euro does stand to make gains if the figures come in at above the forecasted number.

JPY – Yen Takes Losses Against the Dollar

The Yen was also negatively affected by the Dollar’s most recent gains and is currently being traded above 90.00 against the greenback. The Yen is looking better against the Euro, as levels fell to approximately 129.80 in early morning trading.

Looking ahead, the Yen will likely remain at its current levels, as the Japanese government is aiming to keep its value low in order to boost their export industry. That being said any negative economic indicators that may come out of the U.S. would likely lead to a positive impact on the JPY.

Crude Oil – Oil Prices Rise as Inventories Fall

Following a report from the U.S. Department of Energy showing a decline in crude oil supplies, prices shot up and are now being traded at over $74.00 a barrel. While analysts were predicting a decline in supplies, the published figure was well over a million more barrels then forecasted.

Further driving up oil prices was general instability in the Middle East, especially the continuing standoff with Iran over its nuclear program. Looking ahead, prices will likely remain at their current levels for some time, as it appears that no major breakthroughs with Iran are expected to occur in the near future. Traders should pay attention to any major news events coming out of the Middle East, as they are likely to affect the price of crude oil.

EUR/USD GBP/USD USD/JPY USD/CHF AUD/USD EUR/GBP
Daily Trend down no up up down down
Weekly Trend down down up up down down
Resistance 1.4480 1.6325 90.90 1.0545 0.8970 0.8935
1.4460 1.6305 90.70 1.0525 0.8950 0.8915
1.4430 1.6275 90.40 1.0495 0.8920 0.8885
Support 1.4370 1.6215 89.80 1.0435 0.8860 0.8825
1.4340 1.6185 89.50 1.0405 0.8830 0.8795
1.4320 1.6165 89.30 1.0385 0.8810 0.8775

Technical News

EUR/USD

The EUR/USD cross has experienced a bearish trend for the past 2 weeks. However, it seems that this trend may be coming to an end. The RSI of the daily chart shows the pair floating in the over-sold territory, indicating that an upward correction will happen anytime soon. Going long with tight stops might be a wise choice.

GBP/USD

The price of this pair appears to be floating in the over-sold territory on the daily chart’s RSI indicating an upward correction may be imminent. The upward direction on the hourly chart’s Momentum oscillator also supports this notion. When the upward breach occurs, going long with tight stops appears to be preferable strategy.

USD/JPY

The bullish trend is loosing its steam and the pair seems to consolidate around the 90.10 level. The 4 hour chart’s RSI is already floating in an overbought territory suggesting that a recent upwards trend is loosing steam and a bearish correction is impending. Going short with tight stops might be a wise choice.

USD/CHF

The USD/CHF cross has been experiencing much bullish behavior in the past 2 weeks. However, there is much technical data that supports a bearish move for today. The RSI of the daily and 4-hour charts indicates that the pair floats in the overbought territory, leading to the conclusion that a downward correction is imminent. Going short with tight stops may turn out to pay off today.

The Wild Card

GBP/CHF

GBP/CHF sustained upward movement has finally pushed its price into the over-bought territory on the daily chart’s RSI. Not only that, but there actually appears to be a bearish cross on the Slow Stochastic pointing to an imminent downward correction. Forex traders have the opportunity to wait for the downward breach on the hourlies and go short in order to ride out the impending wave.

// Popularity: 4% [?]

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Currency News – Friday, 18 December 2009 December 20th, 2009

Posted in Uncategorized by forextradingmarkett on December 27, 2009
Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Economic News

USD – Dollar Climbs to Three Month High Versus the EUR

The Dollar once again made large gains against a basket of currencies during Thursday’s trading, climbing to a new three month high. Fueling the appreciation of the dollar were fears of Greece defaulting on their sovereign debt as traders looked to avoid the euro. Analysts are also forecasting just when the Fed will initiate its tightening of U.S. monetary policy.

Today the dollar rose by more than 0.9% versus the euro to close at 1.4389, up from an opening price of 1.4522. Driving the change in the exchange rate was the downgrade of Greek sovereign debt by the rating agency, S&P. The firm also warned of potential future downgrades unless major changes to the fiscal status of the nation are undertaken. The downgrade of Greece is weighing on the EUR as traders are now looking at the U.S. economy in a better light relative to the European economy. This is also causing traders to reexamine the potential of the Federal Reserve to increase interest rates. No change was made at the conclusion of the FOMC meeting on Wednesday; however, with the rally of the U.S. dollar, the Fed may reevaluate its decision at it next meeting.

Friday’s trading will be highlighted with a glut of news events and economic data releases from the Euro-zone. The prime market mover will be the German Ifo Business Climate. The survey from manufactures, builders, and retailers is highly respected and shows a high correlation with the German economy. The indicator is s scheduled to be released at 4:00am GMT. The trend of the strengthening dollar may continue into today’s trading day with the EUR/USD seeing a significant support level at 1.4270.

EUR – Greek Sovereign Debt Sinks the EUR

Traders and economists alike are taking a hard second look at the European economy after S&P downgraded the sovereign debt of Greece yesterday. This is causing a shift of opinion on which economy is recovering from the recent recession faster; the U.S. or Europe?

As the debate rages, currency traders are showing their true colors. Some feel the EUR’s run may have extended too far as the EUR/USD climbed to a height of 1.5143 in late November. Since then the pair has fallen and is now trading below the 1.4350 level. Causes of this have been an improvement in U.S. economic sentiment, a potential tightening of U.S. monetary policy and rising interest rates, and the view of overall weakness in the EU economy.

While the stronger economies of Germany and France seem to be pulling out of the economic recession due to large government stimulus packages and previous EUR weakness, the smaller, less fiscally responsible nations of Greece, Spain, and Austria may hold the Euro-zone economy back in its recovery when compared to U.S. One advantage the United States has over the European Union, when it comes to fiscal responsibility national cohesion with only one decision making body in the federal government.

JPY – Yen Rises Against Dollar Where Others Fail

Despite the dollar’s appreciation yesterday against most major currencies, the Yen showed significant strength as the USD/JPY dropped 0.7% and is now trading at 89.5656. In earlier trading, the pair failed to break the significant 89.00 support line.

Japanese officials worry that a strong Yen may have an adverse affect on the Japanese economy. Yesterday, comments were made from deputy Prime Minister Kan, noting he supports a weak yen. A weakening yen could be a blessing to Japan. A falling yen would make Japanese exports cheaper on the world markets, thereby boosting the economic recovery of the island nation and avoiding a second recession.

Crude Oil – Dollar Strength may be putting a Dent in Crude Prices

Crude oil prices were seen falling yesterday but were able to regroup and finish the day even as the dollar rose against the EUR. Prices fell to a low of $72.87 from $74.79 yesterday as the dollar rose against the EUR 0.9%. Crude prices have typically moved in the opposite direction of the dollar’s movement. While this proved to be a positive for crude oil prices during times of dollar weakening, the dollar’s recent bullish run could put a dent in crude oil’s price appreciation.

As economic sentiment improves in the U.S., crude traders may feel the pinch of a stronger dollar. This is natural as the price of crude oil is denominated in U.S. dollars. A rising dollar makes crude prices more expensive and less attractive. A rise in U.S. interest rates would also be a negative for crude oil. With these factors, we could see crude oil drop back down to a fair value of $70.

EUR/USD GBP/USD USD/JPY USD/CHF AUD/USD EUR/GBP
Daily Trend no down down down no up
Weekly Trend down down up up down down
Resistance 1.4460 1.6250 90.55 1.0500 0.8960 0.8970
1.4440 1.6230 90.35 1.0480 0.8940 0.8950
1.4410 1.6200 90.05 1.0450 0.8910 0.8920
Support 1.4350 1.6140 89.45 1.0390 0.8850 0.8860
1.4320 1.6110 89.15 1.0360 0.8820 0.8830
1.4300 1.6090 88.95 1.0340 0.8800 0.8810

Technical News

EUR/USD

The price of this pair appears to be floating in the over-sold territory on the daily chart’s RSI indicating an upward correction may be imminent. The upward direction on the hourly chart’s Momentum oscillator also supports this notion. When the upwards breach occurs, going long with tight stops appears to be preferable strategy.

GBP/USD

The 4-hour chart is showing mixed signals with its RSI fluctuating at the neutral territory. However, the daily Chart’s RSI is already floating in the oversold territory indicating that a bullish correction might take place in the nearest future. Going long with tight stops might be the right strategy today.

USD/JPY

The pair has been range-trading for a while now, with no specific direction. The Daily chart’s Slow Stochastic providing us with mixed signals. All oscillators on the 4 hour chart do not provide a clear direction as well. Waiting for a clearer sign on the hourlies might be a good strategy today.

USD/CHF

The pair has recorded much bullish behavior in the past several days. However, the technical data indicates that this trend may reverse anytime soon. For example, the daily chart’s Stochastic Slow signals that a bearish reversal is imminent. . Going short with tight stops might be a wise choice.

The Wild Card

Gold

Gold prices are once again dropping, and it is currently traded around $1105.40 per ounce. And now, the daily chart’s RSI is giving bullish signals, indicating that gold prices might go up. This might give forex traders a great opportunity to enter a very popular trend.

// Popularity: 4% [?]

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  • November 15, 2009 — Trade Deficit (0)
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  • December 6, 2009 — United World Capital – uwcfx.com (0)
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