Risk Appetite Growing; EUR Pares Losses
July 7th, 2009 Posted in Daily Forex News
After yesterday morning’s short boost to the USD and JPY, as well as Crude Oil’s tumble toward $63, we now see a return of risk appetite following the US’s manufacturing data release. As of this morning the EUR and GBP have been regaining the ground lost to the Dollar and Yen. Today’s data releases will either continue this trend, or remove the risk appetite gained since yesterday.
8:30 GMT: GBP – Manufacturing Production
- Manufacturing makes up about 80% of total industrial production in the UK, making this a significant report to follow.
- After US manufacturing data yesterday showed significant growth, UK data will either support this trend, or reverse it.
- While only modest growth is forecast, a stronger reading will help risk appetite, thus boosting the GBP and EUR.
- A negative result in this report may reverse yesterday’s late-session gains and return traders to the USD and JPY.
Gold Tips:
- Gold prices have been steadily declining lately.
Technically speaking, Gold charts are showing 2 things:
- First: Bollinger Bands on the hourly and daily charts are tightening, suggesting a volatile jump is on the way
- Second: Most pressure on Gold’s price is in an upward direction at the moment.
- However, the “double-top” formation on the weekly chart suggests further downward momentum.
- Today will be an interesting day for Gold traders as its price will no doubt experience heavy volatility.
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