Forex News Blog
Back to The Headlines
Friday January 12, 2007 - 10:02:40 GMT
Share This Story
ACM - www.ac-markets.com
Bank of England unexpectedly increases rates to 5.25%.
By Jean-Claude Braha - ACM Senior Trader
Yesterdays News and Events:
GbpUsd rose 0.63% to 1.9443 after the Bank of England surprised markets with an increase in UK rates to 5.25%. GbpUsd made 1.9537 intraday high. EurGbp dropped sharply after announcement -0.94% to 0.6632. The Euro dived to its lowest since late November against the Dollar after the European Central Bank suggested it may not raise rates again next month as some had anticipated. The markets interpreted ECB President Mr. Trichet‚Äôs remarks as offering no clear signal that rates would raise next month and perhaps not in March. Mr. Trichet said after the ECB left rates at 3.5% that policy remained accommodative but the bank would not use ‚Äústrong vigilance‚ÄĚ in setting monetary policy. EurUsd was down -0.35% to 1.2893 after pointing an intraday high 1.3016. EurJpy posted some gains to 155.16 +0.33% but down from the session high 156.35. Meanwhile, the UsdJpy also rallied reaching its highest level in over a year, above 120 psychological level, +0.81% at 120.34. Investors doubt that a rate raise next week from the Bank of Japan will boost the Yen, given that it will still be the lowest yielding currency within the Group of Seven, and could not be the start for a large unwinding in the carry trades.
Todays Key Issues:
Euro November OECD Leading Indicator is due at 11:00 GMT, previously 109.4. Are due at 13:30 GTM; US December Import Price Index expected 0.6% vs 0.2% (MoM), US December Advance Retail Sales expected 0.7% vs 1% (MoM) and Retail Sales Less Auto expected 0.6% vs 1.1% (MoM). US November ¬£Business Inventories due at 15:00 GMT is expected 0.4% unchanged. US December monthly Budget Statement due at 19:00 GTM is expected $20B vs $11B.
The Risk Today:
EurUsd outlook remains bearish with further Euro weakness to test supports between 1.2925 and 1.2900 (50% retracement of the 1.2483-1.3368 rally). Further downside focuses at 61.8% retracement of the 1.2483-1.3368 climb lies at 1.2820. Strength above Tuesday's high of 1.3050 would halt the current slide. UsdChf has cleared the 61.8% retracement of the 1.2771 to 1.1879 decline at 1.2430. The outlook remains constructive with target on 1.2540. Initial support lies at 1.2400. GbpUsd's yesterday rebound rise through 1.9456 former initial resistance and is exposing next resistances 1.9530 to 1.9570 (61.8% retracement of the 1.9755 to 1.9260 decline). A break of this area would expose 1.9755 (Jan high). Initial support is now at the former 1.9456, but only a break of Thursday's 1.9315 low would reinstate a short-term bearish theme. UsdJpy has resumed the bull trend, clearing 119.90 (Oct high) and 120 psychological level. This exposes the 121.40 high from December 2005. Key support is at 117.98.
Resistance and Support:
|EURUSD ||GBPUSD ||USDJPY ||USDCHF |
|1.3400 T ||1.9850 P ||122.15 S ||1.2770 T |
|1.3130 P ||1.9755 S ||121.40 T ||1.2585 M |
|1.3050 S ||1.9530 M ||120.37 M ||1.2540 S |
|1.2900 ||1.9465 ||120.36 ||1.2500 |
|1.2980 K ||1.9456 M ||119.90 T ||1.2430 K |
|1.2900 T ||1.9315 S ||118.00 P ||1.2400 M |
|1.2820 S ||1.9180 M ||117.44 S ||1.2220 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:
Upgrade Your Trading experience. Try the Amazing Trader
- Actionable trading levels delivered to YOUR charts in real-time.
- Live trading strategy sessions.
- Market Updates with Trading Tools.
Trading Ideas for 26 February 2018
Upgrade Your Trading. Try The Amazing Trader
GVI Trading. Potential Price Risk Scale
Mon 26 Feb 2018
AA: Major, A: High, B: Medium
A 15:00 US- New Homes Sales
Tue 27 Feb 2018
A 08:55 DE- Jobless
B 13:30 US- Durable Goods
A 15:00 US- CB Consumer Confidence
A 15:00 US- Pending Homes Sales
AA 15:00 US- Powell House Testimony
Wed 28 Feb 2018
A 10:00 EZ- flash HICP
AA 13:30 US- GDP
A 15:30 US- EIA Crude
Thu 1 Mar 2018
A All Day final Mfg PMIs
A 13:30 US- Weekly Jobless
AA 13:30 US- Core PCE Deflator
AA 15:00 US- Powell Senate Testimony
A 15:30 US- EIA Crude
Fri 2 Mar 2018
AA 15:00 US- final 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.