Forex News Blog
Back to The Headlines
Thursday October 26, 2006 - 07:57:17 GMT
Share This Story
ACM - www.ac-markets.com
Dollar fell again as Fed made softer comment on US economy.
By Jean-Claude Braha - ACM Senior Trader
Yesterdays News and Events:
The Dollar slipped yesterday after the Federal Reserve warned about the risk of inflation; but also noted that the US economy was slowing and that crude oil prices have fallen. This statement disappointed investors which had expected the Fed to take a harder line against inflation. As widely expected, the FOMC kept the Fed funds at 5.25% for the third consecutive meeting. In addition, the Fed comment provided little support for the view that US interest rates would rise further. In the last two weeks, analyst have been hesitating from a small chance of a cut in US rates early next year to a small chance of a rate rise. First, with little reaction after the meeting, investors have done some technical buying on EurJpy which stimulated buying in Euro against Dollar. In late US session, EurUsd was 1.2610, up 0.4% on the day and only 0.2% from 1.2580 level before the Fed released its rate decision. The dollar dropped 0.4% against the Yen at 118.90 from intraday 119.35 high. The dollar rose against New Zealand Dollar after the RBNZ kept interest rates unchanged at 7.25%. The NZD went sharply lower even as the Central Bank said is may need to tighten again to control inflationary pressures.
Todays Key Issues:
US September Durable Good Orders due at 12:30 GMT is expected 1.9% vs -0.5% and ex-transportation 1% vs -2%. CAD October Business Condition Orders due at 12:30 GMT is expected -1% vs 4%. US September New Home Sales due at 14:00 GMT is expected 1â€™050K unchanged (previous month was up 4.1%). NZD September Trade Balance due at 21:45 GMT expected -850M vs -961M.
The Risk Today:
EURUSD extended the previous day's recovery from 1.2525 on Wednesday, but so far it is holding below resistance 1.2660. Only a move above this resistance would open the door for run to 1.2700 and 12880. USDCHF continues to correct the rally from 1.2550 to 1.2707, with initial support at 1.2605 (61.8% retracement). But its overall favorable tone will remain intact as long as support from last Thursday's 1.2550 low holds. On the top side, focus remains on the 1.2743 and 1.2770 short term resistances. GBPUSD partly recovered from recent lows and remains below resistance at 1.8860, and only a move above there would put it out of this down trend. A break of the Oct 18 reaction low at 1.8660 and then 1.8650 (61.8% retracement of the 1.8516-1.8863 rise) would be the first sign of the bear's return, clearing the way for a run at 1.8516. USDJPY's recent pullback from Tuesday's 119.67 high has shown little power and held above minor support at 118.66.But as long as last Thursday's 118.05 low holds, we can still hope for a run back at 119.90.
Resistance and Support:
|EURUSD ||GBPUSD ||USDJPY ||USDCHF |
|1.2880 K ||1.9075 T ||121.40 T ||1.2930 T |
|1.2700 S ||1.8901 S ||120.00 P ||1.2800 P |
|1.2660 M ||1.8860 S ||119.90 S ||1.2736 S |
|1.2630 ||1.8805 ||118.85 ||1.2615 |
|1.2485 M ||1.8660 M ||118.05 M ||1.2605 M |
|1.2450 T ||1.8601 P ||117.40 S ||1.2550 S |
|1.2400 S ||1.8516 K ||116.06 T ||1.2400 K |
|S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot |
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."
Actionable trading levels delivered to YOUR charts in real-time.
Register To Test Your Amazing Trader
GVI Trading. Potential Price Risk Scale
Mon 10 Sep 2018
AA: Major, A: High, B: Medium
AA 08:30 GB- GDP, Trade, Output
Tue 11 Sep 2018
AA 08:30 GB- Employment Decision
A 09:00 DE- ZEW Survey
Wed 12 Sep 2018
A 12:30 US- PPI
A 14:30 US- EIA Crude
A 18:00 US- Beige Book
Thu 13 Sep 2018
A 1:30 AU- Employment
AA 11:00 GB- Bank of England Decision
AA 11:45 EZ- European Central Bank Decision
A 12:30 US- Weekly Jobless
AA 12:30 US- CPI
Fri 14 Sep 2018
A 08:30 GB- GDP
AA 12:30 US- Retail Sales
A 13:15 US- Industrial Production
AA 14:00 US- prelim University of Michigan
John M. Bland, MBA
co-founding Partner, Global-View.com
Global-View Affiliate Program
We are starting an affiliate program to market some of our products.
Send me an email if you would be interested or if you know someone who would like to be an affiliate. Generous commissions payout for those accepted.
Put the word "affiliate" in the email subject line.
Start trading with forex broker Markets Cube
Max McKegg's Daily Forex Trading Forecasts
Veteran FX Trader, Max McKegg, forecasts all the Major currencies and the Australasians; providing Daily and Medium Term Trading forecasts to subscribers, who include large Banks the world over, as well as individual traders in more than 30 different countries.
Request a TRIAL of Max's Forex Service.