Thursday March 4, 2010 - 18:29:38 GMT
Share This Story
Forex Hound - www.forexhound.com
Stocks Trading Mixed Ahead of Weekly Jobless Claims
U.S. equity markets are trading flat to lower ahead of this
morningâ€™s weekly jobless claims report. In addition, investors seem to
be taking a non-committal approach in front of tomorrowâ€™s U.S. Non-Farm
Payrolls Report. The Forex markets indicate that investor sentiment is
shifting back toward risk aversion which could pressure equity markets
today. A downside break could be led by the Dow and NASDAQ which posted
closing price reversal tops yesterday.
Demand for lower yielding
assets is helping to give June Treasury Bonds and June Treasury Notes a
slight lift this morning. A rapid acceleration to the downside in the
equity market could lead to more upside pressure in the Treasuries. The
key area to watch in the T-Bonds is 117â€™23. Regaining this area will be
a sign of strength.
The stronger Dollar is helping to keep April
Gold on the defensive. Currently this market is trading lower while
sitting on a major 50% level at $1136.75. Bullish traders will try to
create support at this price in order to set up another rally to
perhaps $1158.52. Falling below $1135.75 could lead to a short-term
profit-taking break. With conditions in Greece easing, look for the
Dollar to have the biggest influence on Gold.
The bullish move in
June Crude Oil is showing signs of easing this morning. The stronger
Dollar and weaker Euro is leading to greater demand for lower risk
assets which is pressuring commodities. Yesterdayâ€™s inventory report
was bearish because of the increase in supply. This means that a rally
in the Dollar will likely lead to a sell-off in crude oil.
morning the European Central Bank is expected to announce that interest
rates will remain at 1.0%. Concerns over sovereign debt issues in the
Euro Zone mean that fiscal austerity will be the new buzz phrase as
almost every member of the European Union will be asked to slash their
budgets especially the so-called PIIGS - Portugal, Ireland, Italy,
Greece and Spain. This is likely to keep the pressure on the Euro in
the long-run as it indicates a deflationary scenario driven by lower
Investors are also monitoring todayâ€™s Greek bond
issuance. Traders are most interested in how well this 10 year bond
auction is being received. Early indications are showing that this
auction may be oversubscribed. This is potentially bullish for the Euro
in the short-run.
Short-term, the March Euro has upside potential
because of the massive amount of shorts in the market still betting on
its demise. If the majority of the over 50,000 short positions are
covered, then expect a strong short-covering rally to drive this market
to a key 50% price level at 1.4009 over the near-term.
British Pound is trading a little better this morning. Bearish
conditions have eased since the sharp break earlier in the week. Look
for the Bank of England to leave interest rates unchanged at todayâ€™s
meeting. Investors will be looking for language outlining a possible
extension or expansion of its current quantitative easing program. If
the BoE hints at flooding the market with more cash, then look for
fresh downside pressure to develop.
The return of risk aversion
is helping to underpin the March Japanese Yen. Additional support is
expected to come from Japanese investor repatriation ahead of the close
of the fiscal year. Currently the Japanese Yen is testing a .618
retracement level at 1.1356. Bullish traders seem reluctant to press
the market at this area which could mean a possible intra-day break may
take place before the buying is resumed. A weak stock market could lead
to an acceleration to the upside however.
The mixed to lower Euro
is helping to pressure the March Swiss Franc this morning. Currently
this contract is trading inside of yesterdayâ€™s range. A rally in the
Euro will send this contract higher and set it on course for a test of
a major 50% upside target at .9526. Fresh Euro selling activity will
increase the chances of a Swiss National Bank intervention which will
help pressure the Swiss Franc.
The March Canadian Dollar is
trading better this morning once again. Expectations of a hike in
interest rates by the Bank of Canada before the Fed, has been the
catalyst driving this market lower this week. Watch for a possible
â€śverbal interventionâ€ť by the Bank of Canada as this pair approaches the
January top at .9780. The BoC is concerned that a rapid rise in its
currency will hurt Canadian exports.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."