Wednesday July 6, 2005 - 11:28:15 GMT
Share This Story
FXCM - www.dailyfx.com
Euro and Yen Consolidate – Eyes on ISM
After staging a mild rally during the early part of European session, the euro fell back to the 1.1900 figure on massive selling flows from Germany ahead of the German Factory Orders report. German Factory Orders data actually improved materially jumping to 2.7% increase on a month over month basis versus expectations of only 1% rise. The data continues to confirm our thesis that the lower euro is having a natural recuperative effect on EZ’ s export driven industrial sector, but for now any positive European data is being ignored in favor of US economic news. With that in mind, today’s ISM Non-Manufacturing report may be key to determining the direction of trading for the next few days forward, as the market will focus on both the top line number as well as the employment subcomponent of the report. Also today the release of the Challenger report on corporate layoffs should provide some clues to Friday’s Non Farm Payrolls data.
With the market pausing at the 1.1900 level for the euro and 112.00 level for the yen the ISM and NFP data are likely to be key to future direction of the majors. If the data proves positive dollar bulls may gain enough fuel to drive the rally to the 1.1750 and 113.00 levels respectively. However, should the data disappoint, market sentiment - which has been wildly dollar bullish in its assessment of future US growth - could quickly turn and the long awaited correction in the greenback may finally commence.
FX Spot Overnight
- EUR bounces to 1950 but sells right back to 1900
- JPY rallies to 111.90 on euro weakness
- GBP remains at 7550 as UK data neutral
- CHF flows euro weakness at 3060
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."