Forex News Blog
Back to The Headlines
Tuesday March 27, 2007 - 08:01:11 GMT
Share This Story
ACM - www.ac-markets.com
Dollar slips on disappointing new-home sales data
By Jean-Claude Braha - ACM Senior Trader
News and Events:
The Dollar fell against most major currencies on Monday after February US New Home Sales data dropped to the lowest rate since June 2000, boosting expectations of a Federal Reserve interest rate cut. This apparent collapse in New Home Sales to only 848k in February, from 882k (revised down from 937k) in January and 1'047k in December, seems to suggest that the housing market has gone into free fall again. This fall in the last two months can be attributed to the unseasonably cold weather; but this report is still worrying as sales were revised down over the past six months and the number of home for sale rebounded to a 5 month high. Analysts said Monday's economic data was quite a turnaround from expectations that the worst of the housing market slowdown was over. The data renewed some fears that weakness in the sub-prime mortgage market could undermine the broader housing market and other economic sectors. Speaking in Beijing on Monday, Chicago Fed President Micheal Moskow said problems with high-risk mortgages were not spilling over to the rest of the US housing market. However, traders would await Fed Chairman Ben Bernanke' congressional testimony on Wednesday.
EurUsd rose 0.41% to 1.3329 after hitting intraday high 1.3347. UsdChf dropped -0.34% to 1.2154 and GbpUsd rose 0.43% to 1.9685 after hitting 1.9724 high.
The Dollar pared losses against the Yen and ended 0.16% to 118.24 after an intraday low 117.64. Expectations for Japanese inflation data set for release on Thursday eroded some Yen support.
Today's Key Issues:
EUR 09:00 GMT: March German IFO Business Climate 106.5 vs 107, Current Assessment 111 vs 111.6 and Expectations 102.3 vs 102.6
GB 09:30 GMT: 4Q Total Business Investment 3.3% unchanged (QoQ) and 11.1% unchanged (YoY).
February BBA Mortgage approvals 47K vs 37.8k
USD 10:00 GMT: Fed's Pianalto speaks in Prague on currencies
GB 10:45 GTM: Bank of England Governor King testimony, February inflation report
US 15.00 GMT: March Consumer Confidence 109. vs 112.5 Richmond Fed Manufacturing Index previously -10
US 22:00 GMT: ABC Consumer Confidence March 25th previously -5
NZD 23:45 GTM: February Building Permits previously 3.9%
The Risk Today:
EurUsd return in positive area over 1.3260 support. The outlook remains positive to neutral. Renewed weakness below 1.3260 would pave the way for a decline towards 1.3200 (50% retracement of the rally from 1.3072 to 1.3412). A break there would open the risk down toward 1.3180. On the topside, initial resistance is at 1.3347. There is little resistance toward 1.3411 and then 1.3480.
GbpUsd outlook remains positive following the push through last week's 1.9500 high and the 1.9517 former resistances. 1.9675 resistance has been cleared and open the way for 1.9750 important resistance, early February high. Initial supports marks 1.9582 yesterday low.
UsdJpy continues its choppy consolidation phase, but as long as the 118.50 to 118.88 range resistance holds; focus remains on the downside with a support 116.81. Renewed weakness may clear following 115.76 and the 115.55 support and open the way for a run toward 115.15 trend low from early March.
UsdChf downtrend from 1.2573 to 1.2030 seems not over. The recent correction has found resistance at 1.2218 (the overnight high, key and pivotal resistance) and 1.2228; a clear break of those level is required to suggest scope for gains towards 1.2263. There is still a possibility to see further weakness below 1.2030, after what there's little support till the 1.1881 early December low.
Resistance and Support:
|EURUSD ||GBPUSD ||USDJPY ||USDCHF |
|1.3666 T ||1.9850 P ||119.90 K ||1.2342 S |
|1.3480 S ||1.9750 S ||118.88 M ||1.2263 M |
|1.3343 M ||1.9675 T ||118.50 S ||1.2218 P |
|1.3335 ||1.9695 ||118.10 ||1.2160 |
|1.3260 S ||1.9582 M ||117.17 S ||1.2030 S |
|1.3200 S ||1.9188 S ||115.15 M ||1.1984 P |
|1.3180 S ||1.9146 P ||114.44 S ||1.1881 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
GVI Trading. Potential Price Risk Scale
Mon 23 July 2018
AA: Major, A: High, B: Medium
A 14:00 US- Existing Homes Sales
Tue 24 July 2018
Wed 25 July 2018
A 08:00 DE- IFO Survey
A 14:00 US- New Homes Sales
A 14:30 US- EIA Crude
Thu 26 July 2018
AA 11:45 EZ- European Central Bank Decision
A 12:30 US- Weekly Jobless
A 12:30 US- Durable Goods
Fri 27 July 2018
AA 12:30 US- GDP
A 14:00 US- Final University of Michigan
John M. Bland, MBA
co-founding Partner, Global-View.com
Global-View Affiliate Program
We are starting an affiliate program to market some of our products.
Send me an email if you would be interested or if you know someone who would like to be an affiliate. Generous commissions payout for those accepted.
Put the word "affiliate" in the email subject line.
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.