Forex News Blog
Back to The Headlines
Thursday December 7, 2006 - 10:39:21 GMT
Share This Story
ACM - www.ac-markets.com
Dollar edges modestly higher as ECB meeting is awaited.
By Jean-Claude Braha - ACM Senior Trader
Yesterdays News and Events:
The Dollar advance was fairly modest as investors are waiting European Central Bank meeting at which officials were expected to lift interest rates and comment recent currency advances. ECB may also give clues about the outlook for 2007. So far, most Euro-zone policymakers have said Euro above 1.3000 is no cause for concern but are little worried about a strong Euroâ€™s impact on exports. ADP Employment Services added 158k jobs in November which is an early sign that Friday US non-farm payrolls reports may come out at a bigger than expected net gain. GBP was pressured by softer than expected UK industrial production data and was down more than 0.35% at 1.9662. The Bank of England will also meet today, widely expected to leave rates unchanged; market will focus on inflation risks which could signal futures hikes and help GBP reverse yesterday losses. The New Zealand Dollar jumps up this morning after the Central Bank kept rates steady but said it could not rule out further tightening. NzdUsd traded early at 0.6910 up 0.75%. Also the Bank of Canada kept rates at 4.25%; UsdCad was up 0.45% at 1.1477. And the Reserve Bank of Australia also kept rates steady, while Bank of Japan Policy Board member Kiyohiko Nishimura said today that the BOJ could raise interest rates even if its views on monetary policy do not completely match those o financial markets. Japanese rates are expected to raise 25bp to 0.5% by the end of the first quarter next year. Forex dealers are still bearish on the Dollar because, even on profit taking, the Euro is holding up pretty well and awaited comments from Trichet on Thursday wonâ€™t put EurUsd back soon to 1.2000.
Todays Key Issues:
GB Bank of England Rate decision due at 12:00 GMT is expected unchanged at 5%. Euro European Central Bank Rate decision due at 12:45 GMT is expected 3.5% up 0.25%. Are due at 15:30 GMT; GB October Leading Indicator Index previously 0.2% and Coincident Indicator Index previously 0.2%.
The Risk Today:
EurUsd pulled back modestly yesterday but the outlook for the Euro remains bullish and there is more potential for gains beyond Monday's 1.3364 high to pave the way for an extension towards 1.3400. Beyond 1.3400, the target is 1.3480 (March 2005 high) ahead of the major 1.3666 all time traded high from late-December 2004. Near-term support holds 1.3220. UsdChf down trend remains intact with conditions continuing to provide a bearish market sentiment. The focus is on 1.1760 (76.4% retracement of the major rally from 1.1286 to 1.3287) and then 1.1740 (April 2005 low). Maintain a bearish tone below last Wednesday's 1.2120 high. However; the minor resistance stays at 1.2009 and this level must remain intact to avoid a test of 1.2120. GbpUsd November gains are likely to extend near-term and a break of last Friday's 1.9850 trend high will pave the way for a test of the psychological 2.0000 level ahead of the major resistance at 2.0100 ( Sept 1992). Minor support is located at 1.9616 (yesterday's low), however strong support remains 1.9550, the former key resistance and breakout point. UsdJpy trend remains clearly bearish at this stage having tested 114.44 (50% retracement of the 108.98 to 119.90 decline). The focus now is 114 support and potentially 113.45 (61.8% retracement).
Resistance and Support:
|EURUSD ||GBPUSD ||USDJPY ||USDCHF |
|1.3666 T ||2.0100 T ||119.90 T ||1.2346 K |
|1.3480 K ||1.9900 S ||118.60 S ||1.2120 S |
|1.3400 P ||1.9850 P ||116.60 S ||1.2009 M |
|1.3310 ||1.9692 ||114.96 ||1.1934 |
|1.3220 S ||1.9635 M ||114.45 S ||1.1920 P |
|1.3130 P ||1.9550 S ||114.00 S ||1.1760 S |
|1.2941 M ||1.9435 K ||113.45 T ||1.1740 S |
|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."
Elevate Your Trading With The Amazing Trader!
The Amazing Trader includes:
Register To Test Your Amazing Trader
- Actionable trading levels delivered to YOUR charts in real-time.
- Live trading strategy sessions.
- Market Updates with Trading Tools.
Trading Ideas for 18 December 2017
Register for the Amazing Trader
Amazing Trader EVENT RISK Calendar:
Mon 18 Dec
10:00 EZ- final HICP
Tue 19 Dec
09:00 DE- IFO Survey
13:30 US- Housing Starts/Permits
13:30 US- Current Account
Wed 20 Dec
15:00 US- Existing Homes Sales
15:30 US- EIA Crude
Thu 21 Dec
03:00 JP- BOJ Decision
13:30 CA- CPI & Retail Sales
13:30 US Weely Jobless
13:30 US- GDP
Fri 22 Dec
09:30 US- GB- GDP
13:30 US- core PCE Deflator & Presonal Income
15:00 US- New Homes Sales
15:00 US- final University of Michigan
17:00 US- early Closes
Mon 25 Dec
00:00 Christmas Holidays
Potential Trading Opportunities
John M. Bland, MBA
- POTENTIAL PRICE RISK: Medium Mon--10:00 GMT-- EZ- final November HICP. flash data are rarely changed.
- POTENTIAL PRICE RISK: HIGH- Medium Tue --09:00 GMT-- DE- IFO Survey. Key report but usually not a market-mover
- POTENTIAL PRICE RISK: HIGH- Medium- Tue --13:30 GMT-- US- Housing Starts and Permits. Leading indicators of activity
- POTENTIAL PRICE RISK: HIGH-Medium- Wed --15:00-- US- Existing Homes Sales. Top Housing statistic
- POTENTIAL PRICE RISK: Medium- Wed --15:30-- US- EIA Crude
co-founding Partner, Global-View.com
EXCLUSIVE: Global-View Daily Trading Chart Points Updated
EXCLUSIVE: Global-View Free Forex Database updated
TRADER ADVOCACY ARTICLES
Trader's Advocate Articles..