Forex News Blog
Back to The Headlines
Wednesday April 4, 2007 - 09:50:03 GMT
Share This Story
ACM - www.ac-markets.com
Yen slides as Japan outflows expected to resume
By Jean-Claude Braha - ACM Senior Trader
News and Events:
The Yen dropped to a one-month low versus the Dollar on Tuesday on expectations that Japanese investors will resume selling the currency as they park money overseas in the fiscal year just started. Japanese mutual funds and corporations often repatriate overseas profits before book closing at the end of March, buoying the Yen. Traders said that with the new fiscal year under way, speculation was growing that these flows will reverse and the Yen come under renewed pressure as Japanese investors resume purchases of higher-yielding overseas assets. UsdJpy was up 0.87% to 118.89 while EurJpy was up 0.46% to 158.32 after posting intraday high 158.86 and GbpJpy closed up 0.58% to 234.47 from earlier high 235.11.
The Australian Dollar retreated from a decade high against the Dollar ahead of an interest rate decision, with investors betting the Reserve Bank of Australia will hike rates to 6.5%. AudUsd traded down -1% to 0.8081.Sterling slipped -0.26% to 1.9733, easing ahead of a rate decision by the Bank of England on Thursday. Markets are pricing a small chance that the BoE will raise rates from 5.25%.
Investors will turn their attention today on the February Factory Orders report, which is expected to show a modest rebound, as well as the Institute for Supply Management's non-manufacturing index which is expected to have climbed very slightly in March.
Elsewhere, news came Tuesday that the Brazilian Central Bank is planning to diversify the portfolio of the nation's foreign-currency reserves. The idea is gradually to raise part of reserves in assets not linked to the US Dollar said Rodrigo Azevedo, Brazil's Central Bank Monetary Policy Director.
Today's Key Issues:
EUR 08:00 GMT: March Euro-zone Purchasing Managers Index Services 57.6 vs 57.5
GB 08:30 GMT: March Official Reserves (Changes) previously $403M, March Producer Manufacturing Index for Survives 57.4 to 57.6 vs 57.4
EUR 09:00 GMT: February Euro-zone Retail Sales 0.5% to 0.6% vs -1.0% (MoM) and 1.1% vs -0.1% (YoY)
US 11:00 GMT: MBA mortgage Application (March 30) 12.5% vs -0.2%
US 12:50 GMT: March ADP Employment Change 128k vs 57k
CAD 12:30 GMT: February Building Permits -8.5% vs 11.3% (MoM)
US 14:00 GMT: February Factory Orders 2.2% vs -5.6%, March ISM non-Manufacturing 55 vs 54.3
US 17:15 GMT: Fed's Fisher speaks in Austin on US economy
The Risk Today:
EurUsd continues to hold above support 1.3260 low, and only a break there would damage the case for another leg higher and open the way toward 1.3200 (61.8% retracement of the 1.3072-1.3412 rally). Focus remains on the 1.3411 trend high from previous week, with strong resistance at the 1.3480 reaction March 11 high.
GbpUsd The rebound from Friday's 1.9546 low has pushed above the 1.9750. Further advance might clear the 1.9850 pivot point and extend it with little resistance until the 1.9917 January trend high. The next upside trigger and minor resistance is 1.9824. Initial support is 1.9750 (former resistance).
UsdJpy consolidation phase is over and it has taken on a more positive bias, pushing beyond the 118.50 to 118.99 yesterday high. Sustained up-move above the top end of this area would confirm a bullish resolution towards 119.5 (61.8% retracement of 122.20 to 115.15 decline), ahead of 120.00 round number resistance. On the flipside, it will take a break of last Friday's 117.17 to diminish the bullish trend.
UsdChf is holding below resistance at 1.2230 and last Friday's high 1.2240. But it will take a break of the 1.2080 to mark a return of the broader bear trend and open the door toward its 1.2030. Lower than that, there is little support till the 1.1881 early December low. On the topside, a break of 1.2230 would instead reinstate a short-term bullish theme and open focus on 1.2356 early March high.
Resistance and Support:
|EURUSD ||GBPUSD ||USDJPY ||USDCHF |
|1.3666 T ||2.0100 T ||119.90 K ||1.2342 S |
|1.3480 S ||1.9917 T ||118.88 M ||1.2263 M |
|1.3411 M ||1.9850 P ||118.50 S ||1.2230 S |
|1.3355 ||1.9760 ||118.80 ||1.2200 |
|1.3260 S ||1.9750 S ||117.17 M ||1.2030 S |
|1.3200 S ||1.9675 M ||116.76 S ||1.1984 P |
|1.3180 S ||1.9188 S ||115.15 T ||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."
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 23 October 2017
Register for the Amazing Trader
Amazing Trader EVENT RISK Calendar:
Tue 24 Oct
All Day flash PMIs
Wed 25 Oct
01:30 AU- CPI
08:00 DE- IFO Survey
08:30 GB- GDP
14:00 CA- BOC Decision
14:30 US- EIA Crude
Thu 26 Oct
11:45 EZ- ECB Decision
12:30 US- Weekly Jobless
14:00 US- Pending Homes Sales
Fri 27 Oct
12:30 US- GDP
14:00 US- final Univ of Michigan
Potential Trading Opportunities
John M. Bland, MBA
- POTENTIAL PRICE RISK: Medium Tue-- All Day Global flash PMIs. First good look at October economic performances.
- POTENTIAL PRICE RISK: HIGH Wed-- 01:30 GMT AU- CPI. Top Inflation indicator.
- POTENTIAL PRICE RISK: HIGH Wed-- 08:00 GMT DE- IFO Survey. Top German indicator.
- POTENTIAL PRICE RISK: HIGH Wed-- 14:00 GMT CA- BOC Decision. No Policy Change Expected.
- POTENTIAL PRICE RISK: Medium Wed-- 14:30 GMT US- EIA Crude. Top Weekly WTI Statistic.
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..