|Forex News Center|||||Forex News Archive||||
Thursday, 18 Feb 2010
Unemployment Claims in Focus Today
The Forex market awaits crucial U.S. data today in the PPI and Unemployment Claims figures at 13:30 GMT. These publications are set to drive the pace of the forex market throughout the trading day. Forex traders are advised to open their USD positions now, prior to the release of the vital economic data from the leading economies.
USD - USD Gains on Strong U.S Economic Data
The dollar rose against most of its major currency pairs yesterday, lifted by stronger-than-expected U.S. housing and industrial data, and as worries about Greece's fiscal health weighed on the EUR. By yesterday's close, the USD rose to a two-week high against the yen, pushing the oft-traded currency pair to 91.20. The dollar experienced similar behavior against the EUR and closed at 1.3600.
The dollar extended gains against the EUR and JPY after minutes from the Federal Reserve's January meeting showed policy makers saw a need to begin a program of assets sales in the near future and expect the economic recovery to continue. The optimistic tone bolstered investors' expectation that the Fed could increase interest rates sooner than previously thought.
USD trading will be interesting today as another batch of important economic data is expected to be released. Similar to yesterday, the news will start at 13:30 GMT with a series of economic indicators being released starting with PPI figures, unemployment claims and the Philly Fed Manufacturing Index. Surprisingly, almost all of these releases are expected to be higher than their previous figures meaning the USD could continue to show further bullishness today. Traders should stay close to the market today, as there is a strong chance to capitalize on the fluctuations which will likely follow these releases.
EUR - EUR Weakens vs. Rivals
The EUR extended losses against most of its major currency on Wednesday and hit session lows, as bearish investor sentiment over Greece's public finances weighed on the single currency. After yesterday, the 16 nation currency fell sharply against the USD, pushing the oft-traded currency pair to 1.3600. The EUR also saw bearishness against the GBP and closed at 0.8675.
The EUR fell even after European finance ministers on Tuesday gave Greece a one-month reprieve, until March 16, to show its deficit reduction plan was being rolled out effectively. They set the same deadline for them to decide what should happen next.
The EUR has fallen almost 5% against the dollar since the start of the year on concerns about Greece's fiscal health and that of other euro zone peripheral countries. Currency speculators raised net EUR short positions to a record high last week.
JPY - Yen Experiences Mixed Results against Majors
The Japanese Yen completed yesterday's trading session with mixed results versus the major currencies. The JPY fell against the USD yesterday, pushing the oft-traded currency pair to 91.20. The Yen experienced similar behavior against the GBP as the pair rose from 1.4195 to 1.4285 by day's end. The JPY did see some bullishness as well as it gained 100 points against the EUR and closed at 123.60.
The Japanese market should have a heavy effect on the JPY versus its major currency counterparts, as the Overnight Call Rate will be announced today. The rate is expected to remain unchanged but traders should pay close attention to the BoJ Press Conference that will follow to look for expectations of Japan's economic future. A bullish statement from the BoJ could lead some traders to believe the BoJ is forecasting a rosier financial climate in Japan.
OIL - Crude Oil Inventories to be Released Today
Crude oil rose for a second day on increasing optimism that the world economy is emerging from recession and fuel consumption will recover. The crude oil ended above $77 a barrel for the first time in two weeks yesterday as Traders also took positive clues from the recent upsurges in the stock markets.
Today, the release of crude oil inventory is likely to help determine the market's next direction for Black Gold. Moreover, a release of a string of positive economic figures from U.S could help its bullishness. Therefore, traders are advised now to make some profits as the price of Crude Oil is set to remain volatile in the short-medium term.
There is a very distinct bearish channel forming on the 4H chart, as the pair is now floating in its lower section. In addition, all oscillators on the daily chart are pointing down, suggesting that the downtrend might extend. Going short might be the right strategy today
It seems that the Cable has limited its bullish correction after peaking at the 1.5790 level. And now, a bearish cross on the 4H chart's Slow Stochastic indicates that the general downtrend might extend. Going short seems to be the preferable choice today
The hourly chart shows that the pair is currently range-trading within a restricted price range. However, as the RSI on the 4H chart has dropped beneath the 70 line, it appears that bearish momentum might be arising. Going short with tight stops could be the right choice today.
Ever since bottoming at the 1.0650 level, the pair has entered a very strong bullish trend and is currently traded around the 1.0800 level. And now, a flag formation on the 4-hour chart suggests that the bullish move has more room to go
The Wild Card
Gold prices are in the midst of a very strong downtrend, and an ounce of gold is currently traded for about $1100. The hourly chart shows that the current price has dropped beneath the Bollinger Bands' lower border, indicating that the bearish move is still quite strong. This might be a good opportunity for forex traders to join a very popular trend.
|00:00||EUR||German 10-y Bond Auction||-||0.87/1.2||-|
|01:30||AUD||Construction Work Done||q/q||-1.2%||-1.7%||-|
|08:00||CHF||UBS Consumption Indicator||1.41||-||-|
|08:00||EUR||German Import Prices||0.3%||-0.3%||-|
|10:30||GBP||Second Estimate GDP||q/q||0.7%||0.7%||-|
|10:30||GBP||Prelim Business Investment||3.3%||2.3%||-|
|10:30||GBP||Index of Services 3m/3m||0.8%||0.7%||-|
|12:00||GBP||CBI Realized Sales||28||31||-|
|14:30||USD||Core Durable Goods Orders||m/m||-0.1%||0.5%||-|
|14:30||USD||Core PCE Price Index||m/m||0.1%||0.1%||-|
|14:30||USD||Durable Goods Orders m/m||m/m||-1.1%||-0.4%||-|
|15:55||USD||Revised UoM Consumer Sentiment||89.4||90.2||-|
|15:55||USD||Revised UoM Inflation Expectations||2.6%||-|
|16:00||USD||New Home Sales||467K||471K||-|
|16:00||USD||Pending Home Sales||m/m||0.3%||0.9%||-|
|16:30||USD||Crude Oil Inventories||2.6M||-|