Thursday July 28, 2005 - 02:44:37 GMT
Share This Story
Tricom Futures and Foreign Exchange -
Forex: If you can play with a Yo-Yo, you can traded the EUR
The USD weakened on Wednesday, snapping a three-day advance against major currencies after unexpectedly strong U.S. economic data failed to push it through a key technical level against the euro.
A surprise increase in orders for durable goods in June briefly pushed the dollar up early in the New York session, but options-related buying kept the euro above $1.1950 and its subsequent rally spilled over into other currencies.
The Federal Reserve's latest snapshot of the U.S. economy , its so-called "Beige Book," was released later in the day but also failed to give the dollar much support. It showed that economic activity continued to expand in June and early July, suggesting a relatively robust economy. But it also said labor market hiring was mixed and pricing pressures eased or were flat in most regions, which, on the margins, could temper expectations of dollar-supportive interest rate rises. The Fed has raised benchmark interest rates nine times since June last year to 3.25 percent, and has shown no signs of stopping any time soon.
All eyes are now on the first estimate of U.S. gross domestic product for the second quarter, which will be released on Friday. If the data shows growth of 3.5 percent or more, then the dollar could head back up again, pushing the euro back down toward that key $1.1950 support again.
The NZ central bank announced earlier today kiwi rates would be left unchanged, as expected, and also toned down their statement, but not as much expected.
So far this morning, we've seen the USD retreat further from the NY close. The PBOC Vice Governor made some comments earlier suggesting the Yuan maybe allowed to fluctuate with the market somewhat more than traders expect. It seemed like a somewhat nothing comment, but it's been a quite news day thus far.
The EUR looks like it might extend a little further towards 1.2100-20, but i think we will eventually test 1.1800 in coming weeks before turning around. A break below 1.2930 in USD/CHF could get a bit ugly. Otherwise, i think the day will be fairly uneventful ahead of tomorrow's US GDP.
Today’s Economic Releases:
JPN: Retail Sales
US: Weekly Jobless Claims
Today’s Top Trades
· Buy AUD/NZD around 1.1110-20
· Sell EUR/USD around 1.2080-90
· Sell NZD/USD around .6810-20
For more ideas send me an email, email@example.com
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."