Forex News Blog
Back to The Headlines
Monday November 13, 2006 - 10:47:39 GMT
Share This Story
ACM - www.ac-markets.com
Dollar is under pressure with concern of China reserves.
By Jean-Claude Braha - ACM Senior Trader
Yesterdays News and Events:
The Dollar went down against the Euro and Sterling on Friday because of Chinaâ€™s plan to diversify its $1 trillion in Forex reserves. Peopleâ€™s Bank of China Governor Zhou Xiaochuan drove direction of the Currencies Market for the second day. He spoke again in Frankfurt on Friday that China could diversify its assets across different currencies and investments. Analysts noted that China has revealed such plan before, but diversification to other currencies will hurt the Dollar, which makes 70% of its reserves. Latest days Zhouâ€™s comment gave investors perfect excuse to sell the Dollar especially as interest spread is now smaller and helped demand for European currencies as Investors are always looking for higher yield. EurUsd rose to a 2 1/2-month high at 1.2901 and GbpUsd was up at 1.9180, the 18-month high. The Dollar and other currencies came under pressure against the Yen overnight after the Bank of Japan Governor Toshihiko Fukui said he was concerned about a possible closing of carry trades, in which investors borrow the low-yielding Japanese currency and buy higher-yielding as Euro, Sterling and Dollar. GbpJpy fell to an eight-year low last week at 225.30. Last week, EurJpy was up to 151.48 an 8-year high.
Todays Key Issues:
Light announcement day; ECBâ€™s Trichet and EUâ€™s Mc Creevy speak on Payment Systems at 13:15 GMT. US October Monthly Budget Statement due at 19:00 GMT is expected -$49B vs -$47.4B. JPN Gross Domestic Product (3Q) due at 23:50 GMT is expected 0.2% unchanged and 1% unchanged annualized.
The Risk Today:
EURUSD starts the week on a firmer note and remains bullish above 1.2750. As long as this continues to provide a floor even with a possible set back approaching the resistances of 1.2941 and 1.2981; the sentiment remains positive. USDCHF maintains a bearish tone for now having broken down 1.2400 (76.4% retracement of the 1.2291 to 1.2771 advance). The focus down is on 1.2290 with scope too for 1.2185. Intraday resistance cuts in at Wednesday's 1.2525 high, but we must see a break of 1.2580 to end this latest bear development. GBPUSD had tested key resistance 1.9144 high, with further confirmation it could target 1.9220 trendline resistance. Next focus will be 1.9330. For now, the positive outlook remains intact with immediate support at Friday's 1.9060 low. A turn down, lower than 1.8950, will end this positive trend. USDJPY targets 116.60 early Nov low. Intraday resistance cuts in at 118. Next resistance 118.50 is active again and the negative tone should prevail below it.
Resistance and Support:
|EURUSD ||GBPUSD ||USDJPY ||USDCHF |
|1.2981 S ||1.9220 T ||120.00 P ||1.2800 T |
|1.2941 T ||1.9144 K ||119.90 S ||1.2707 S |
|1.2880 S ||1.9125 M ||118.50 S ||1.2525 M |
|1.2857 ||1.9113 ||117.43 ||1.2380 |
|1.2750 M ||1.9060 M ||117.25 M ||1.2290 S |
|1.2620 S ||1.8950 S ||116.60 S ||1.2230 M |
|1.2450 T ||1.8601 P ||116.06 T ||1.2185 T |
|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
Trading Ideas for 12 March 2018
GVI Trading. Potential Price Risk Scale
Mon 12 Mar 2018
AA: Major, A: High, B: Medium
A 17:00 US- 3-Yr Auction
Tue 13 Mar 2018
A 10:00 DE- ZEW Survey
AA 12:30 US- CPI
A 17:00 US- 10-Yr Auction
Wed 14 Feb 2018
AA 12:30 US- Retail Sales
A 12:30 US- PPI
A 14:30 US- EIA Crude
A 17:00 US- 30-Yr Auction
Thu 15 Mar 2018
A 12:30 US- Weekly Jobless
A 12:30 US- Philly Fed, Empire PMI
A 12:15 US- Industrial Production
Fri 16 Mar 2018
A 10:00 EZ- final HICP
A 12:30 US- Housing Starts/Permits
A 14:00 US- prelim Univ of Mich
John M. Bland, MBA
co-founding Partner, Global-View.com
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.