Forex News Blog
Back to The Headlines
Thursday March 8, 2007 - 11:34:33 GMT
Share This Story
ACM - www.ac-markets.com
The Dollar fell after report showed US economy lost strength.
By Jean-Claude Braha - ACM Senior Trader
News and Events:
The Dollar fell on Wednesday after a Federal Reserve report showed evidence of slowing US economy ahead of the key February payrolls report due on Friday. The ADP employer survey suggests that US private non-farm payrolls increased by a small 57k in February, with a 100,000 increase in services being partially offset by a 29,000 decline in manufacturing and a 14,000 decline in other goods-producing industries (mainly construction). The forecast for change in Non-Farm payrolls due Friday is between 100k vs 200k against 111k in January. The Beige Book report on US economy showed 4 of 12 districts reported slowing activity in the later part of February. This report pushed down the Dollar and renewed expectations that the Federal Reserve may have to cut interest rates more than once this year. Even before the Beige Book, dealers had already started positioning themselves for lower-than-expected payrolls growth in February by setting up bets against the Dollar.
EurUsd rose 0.31% to 1.3177 after hitting 1.3186 intraday high. EurUsd is trading in 1.3071-1.3260 since mid-February. UsdChf fell -0.58% to 1.2164. UsdJpy fell -0.95% to 115.69 with most of de decline during US session. EurJpy was only down -0.63% at 152.45 after posting its biggest weekly loss in 2 Â½ years last week.
New Zealand's Central Bank raised interest rates as expected to 7.5%, the highest in the industrialized world, and comments it may lift them further due to persistent inflationary concerns. NzdUsd fell -1.04% to 0.6777 following the announcement , as traders interpreted the Central Bank statement as less hawkish than expected and believes that another quarter rise as unlikely. The Reserve Bank of New Zealand said that the 0.25% increase from 7.25%, a level maintained since December 2005, was necessary to cool a robust housing market and domestic demand.
Today's Key Issues:
GB 10:30 GMT: February BRC Shop Price Index previously -0.6% (MoM) and 1.8% (YoY)
Euro 12:00 GMT: January German Industrial Production 0.3% vs -0.5% (MoM) and 6.1% vs 5.2% (YoY)
GB 12:00 GMT: Bank of England announces Rates decision
Euro 12:45 GMT: European Central Bank announces Rates decision
CAD 13:30 GMT: February Housing Starts 215k vs 249.3k and January New Housing Price Index 0.3% vs 5% (MoM)
Euro 13:30 GMT: Trichet speaks at European Central Bank news conference
US 13:30 GMT: Initial Jobless Claims (March 3rd)
JPN 23:50 GMT: January Machine Orders 2.1% vs -0.7% (MoM) and 0.9% vs -3.8% (YoY)
The Risk Today:
EurUsd recovered from Monday's 1.3073 low. Further advance above the nearby 1.3189 minor resistance (61.8% of 1.3261-1.3072) would confirm a return of the underlying bull trend from the 1.2666 mid-January low, opening the door toward the 1.3250 (76.4% retracement of the 1.3368-1.2865 decline) and 1.3260 late-February trend high. On the downside, a break of 1.3074 would confirm the short term negative trend and expose further downside toward 1.3024. There market would target 1.2990 (61.8% retracement of the 1.2865 to 1.3191 advance).
GbpUsd remains heavy after the recent break of the bottom of the large trading range at the 1.9402 Mid-February low. Focus remains on the 1.9146 Pivot support from last November. Initial resistances are 1.9360, therefore resistance at the 1.9403 should cap the upside for the near term.
UsdJpy recent bounce from 115.15 appears corrective. UsdJpy is still under pressure following the sharp losses over last week. Only a move above 117.44 resistance to 118 pivot area would put the bear on hold in the short term. Until then, note that there is little support below 115.15 until the 114.38 support.
UsdChf recent recovery from Monday's low 1.2109 lost strenght in front of resistance from Friday's 1.2263 high. Only a move above there would offset the broader downward pressure from the 1.2575 late January high. Until then, note that there is little support below the current 1.2108 trend low until 1.2030 trendline support and 1.1980 December low.
Resistance and Support:
|EURUSD ||GBPUSD ||USDJPY ||USDCHF |
|1.3364 T ||1.9750 S ||119.90 K ||1.2575 S |
|1.3290 T ||1.9403 S ||118.00 P ||1.2477 S |
|1.3250 S ||1.9360 M ||117.44 S ||1.2363 M |
|1.3170 ||1.9325 ||116.60 ||1.2200 |
|1.3074 S ||1.9220 M ||114.44 S ||1.2109 S |
|1.2990 S ||1.9188 S ||114.07 M ||1.2030 T |
|1.2900 T ||1.9146 P ||111.96 S ||1.1980 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 19 February 2018
Upgrade Your Trading. Try The Amazing Trader
GVI Trading. Potential Price Risk Scale
Mon 19 Feb 2018
AA: Major, A: High, B: Medium
00:00 CN, US- Holiday
Tue 20 Feb 2018
00:00 CN- Holiday
A 10:00 US- ZEW Survey
Wed 21 Feb 2018
00:00 CN- Holiday
A All Day flash PMIs
A 15:00 US- Existing Homes Sales
A 15:30 US- EIA Crude
AA 19:00 US- Fed Meeting Minutes
Thu 22 Feb 2018
A 09:00 DE- IFO Survey
A 09:30 GB- GDP
AA 13:30 CA- Retail Sales
A 13:30 US- Weekly Jobless
Fri 23 Feb 2018
A 10:00 EZ- Final HICP
AA 13:30 CA- CPI
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.