Forex News Blog
Back to The Headlines
Friday December 15, 2006 - 10:48:33 GMT
Share This Story
ACM - www.ac-markets.com
Dollar raised again on lower expectation for a US rate cut soon.
By Jean-Claude Braha - ACM Senior Trader
Yesterdays News and Events:
The Swiss National Bank raised short-term interest rates by 25bp at a mid-point of 2% on Thursday for the fifth consecutive quarter and said it would continue to tighten policy despite ultra-low inflation. The bank said it expected inflation in 2007 to fall to 0.4% compared with its previous forecast of 1.1%. In addition, it expects inflation to rise slightly to 0.9% in 2008. The Dollar rose at first yesterday after a good reading of US jobless claims at giving investors new incentive to buy the currency. The report showed that the number of people filing initial unemployment claims last week fell to 304k more sharply than economists had expected around 320k supporting the view of a robust labour market. However, while housing and manufacturing data have been weak, reports on employment, service sector activity and consumer spending paint a healthier picture of the US economy and financial futures traders have already priced the expectation of no rate cut in the first quarter. Last Tuesday, the Fed left rates at 5.25% and said nothing in its post-meeting to suggest a rate cut any time soon. In addition, expectation for a rate hike in Japan has been recently lowered after comments that the Bank of Japan will keep policy unchanged on its 19th December meeting. EurUsd, having hit a session low at 1.3141, was down -0.5% at 1.3155. UsdChf ended up 0.65% at 1.2137 after spotting high at 1.2161. UsdJpy rose at 117.89 up 0.28% and EurJpy hit new record hit at 155.59 before hedging lower at 154.88 down -0.2%.
Todays Key Issues:
Are due at 10:00 GMT; Eurozone November CPI expected 0% vs 0.1% (MoM) and 1.8% unchanged (YoY), Eurozone Core CPI expected 1.6% vs 1.5%, Eurozone October Industrial Production expected 0.4% vs -1% (MoM) and 4.4% vs 3.3% (YoY). Are due at 13:30 GMT; US November CPI expected 0.2% vs -0.5% (MoM) and 2.1% vs 1.3% (YoY), CPI ex-food & energy expected 0.2% vs 0.1% (MoM) and 2.7% unchanged (YoY), US December Empire Manufacturing expected 18.3 vs 26.7. US November Industrial Production due at 14:15 GMT is expected 0.1% vs 0.2%.
The Risk Today:
EurUsd would certainly hold at 1.3130 support. A break of this level would be needed to threaten the immediate positive tone for a setback towards 1.3030 (38.2% retracement of the 1.2843 to 1.3368 advance). While 1.3130 remains intact, the focus is still on 1.3293, the high from. UsdChf had overcome the formerly resistant 1.2120 level is now heading for next resistance 1.2185. A move through this would be necessary to end the broader bear channel that has kept this pair under pressure since mid-Oct 1.2771 high. Renewed weakness below the 1.1920 would reinstate a bearish tone for a fresh assault on the 1.1880 trend. GbpUsd remains constructive above 1.9435 (38.2% retracement of the 1.8835 to 1.9849 advance). As long as this continues to hold, it could favor a move through 1.9730 and will re-focus attention on the 1.9850 pivot point high early December. UsdJpy has scope for further corrective gains towards 118.60 (76.4% retracement of the 119.90 to 114.43 decline).
Resistance and Support:
|EURUSD ||GBPUSD ||USDJPY ||USDCHF |
|1.3480 K ||1.9900 S ||119.90 T ||1.2346 K |
|1.3400 P ||1.9850 P ||118.60 S ||1.2221 S |
|1.3370 S ||1.9730 M ||117.90 M ||1.2185 S |
|1.3170 ||1.9625 ||117.89 ||1.2137 |
|1.3130 P ||1.9550 S ||116.60 M ||1.1920 P |
|1.3085 S ||1.9435 K ||114.00 S ||1.1880 T |
|1.2941 M ||1.9340 S ||113.45 T ||1.1760 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..