Monday, 27 Jul 2009

Trends Unchanged from Today's Economic Data

Today's trading has put the major currencies right back where they started at the opening of the market. The EUR/USD spiked upwards of 1.43, but now rests near 1.4240 where it began the week. The GBP/USD and USD/JPY have remained flat, while the Australian Dollar gained modestly against most of the other major currencies.

The morning release of German consumer confidence and the Euro-Zone's M3 money supply helped boost short-term risk appetite, while the USD's release of New Home Sales data helped the USD rebound slightly, against most forecasts. However, the overall trend remains unchanged for almost all currency pairs and crosses.

Tomorrow's early morning hours will see some volatility in the Pacific currencies with information being released regarding New Zealand's trade balance and Australia's level of consumer confidence. On the other hand, the CB Consumer Confidence report from the United States at 14:00 GMT will likely set the pace for the day's trading and forex traders would be wise to pay close attention to it.