Monday July 4, 2005 - 05:08:55 GMT
Share This Story
Tricom Futures and Foreign Exchange -
Forex: US Presidential Order: To Celebrate Independance Day, the World is ordered to Buy USD
While we didn't get the expected pre-long weekend EUR short covering on Friday, we did get the expected breakdown below 1.2000, which we have been calling over the last few weeks. Where to now then? I think our next target is around 1.1800-1.1750, and don't be surprised if we see this level sometime this week. On Friday, we have US employment data, with the expectation of further USD supportive data. Ahead of this, we have the ECB meeting on Thursday, and while the market's not expecting a rate cut, we may start to see some comments which suggest the ECB is taking off its rose coloured glasses, and starting to accept the reality of a slowing EU economy.
Overall, the USD remains the flavour of the month, and as such we should continue to look for opportunities to Sell rallies in EUR/USD, GBP/USD, NZD/USD, GBP/JPY, and/or BUY dips in USD/CHF, USD/JPY, and AUD/NZD. The BOE haven't even suggested a rate cut, yet the GBP has sold off 6 big figures in a week. And, we may still have further downside - a Fib level comes in around 1.7110 which the market maybe gravitating towards.
In currency markets on Friday, the euro fell well below the key psychological level of $1.20, approaching its launch rate six years ago of about $1.1750. The dollar rose to 10-month peaks against the Japanese yen to 111.78 yen, before ending at 111.72 yen, up from 110.80 yen.
U.S. blue-chip stocks and the dollar rose on Friday, but bonds retreated, as news of improved consumer confidence and manufacturing last month suggested that the Federal Reserve is likely to keep raising interest rates.
Oil prices jumped 4 percent as U.S. heating oil rose on fear of tight supplies in the fourth quarter.
U.S. financial and commodity futures markets will be closed on today for the Independence Day holiday.
Today’s Economic Releases:
EU: Trichet speaks to EU parliament
Today’s Top Trades
· Sell EUR/USD strength towards 1.1960-80
. Buy USD/JPY around 111.40-50
. Buy USD/CHF around 1.2940-30
For more ideas send me an email, [email protected]
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."