Forex News Blog
Back to The Headlines
Friday April 20, 2007 - 09:57:22 GMT
Share This Story
ACM - www.ac-markets.com
Yen drifts higher on China possible interest hike
By Jean-Claude Braha - ACM Advanced Currency Markets, Geneva, Switzerland
News and Events:
The Yen edged higher on Thursday as worries about a possible near-term interest rate hike in China to slow its red-hot economy prompted investors to unwind trades funded by low rates in the Japanese currency. Any slowdown in China as a result of higher rates could crimp demand for emerging market and other risky assets that have supported the Carry-trade, a strategy in which investors borrow cheaply to buy higher-yielding assets or currencies. Data showed that China's economy grew at an 11.1% annual pace in the 1st quarter and March inflation rose above the Central bank's 3% comfort level. The Yen gains against high-yielding currencies such as US Dollar, Australian and New Zealand Dollar. UsdJpy went down to 117.61 low yesterday before trimming to 118.43 close. EurJpy closed to 161.37 after posting 159.62 intraday low. AudYen dropped to 97.45 low before cutting losses to 98.89. It was reversing from Tuesday decade high 100.04.
GbpJpy traded 237.28 at close reversing form intraday low 235.25. Sterling rose Tuesday to 239.44 high against the Yen. GbpUsd was down 0.26% to 2.0036 after hitting a 26-year peak on Wednesday at 2.0133. EurUsd consolidate near 2-year high 1.3638 after notching 1.3561 yesterday low. EurUsd is still in sight of the record high at 1.3666 set in December 2004.
Today's Key Issues:
CHF 7:15 GMT: March Producer & Import Prices 0.3% unchanged (MoM) and 2.3% vs 2.2% (YoY)
GB 8:30 GMT: March Retail Sales 0.5% vs 1.4% (MoM) and 4.7% vs 4.9% (YoY)
CAD 12:30 GMT: February Retail Sales -0.3% vs -0.2% (MoM) and Ex-autos 0.3% unchanged (MoM)
US 16:00 GMT: Treasury Secretary Paulson keynote speech at China Conference
US 19:50 GMT: Fed's Mishkin speaks on US economic outlook.
The Risk Today:
EurUsd continues to narrow the distance toward the 1.3666 all-time high from December 2004. Initial support comes from Monday's 1.3525 low, but only a break of the 1.3482 support would damage the bull trend in the near run. Initial minor resistance is 1.3631.
GbpUsd posted a 26-year high on Wednesday at 2.0133. Potentially, the next barrier is 2.0230. There, the rise from 1.9591 would equal the distance made in the 1.9184-1.9823 preceding rise. Initial support cuts in at Monday's 1.9941 high. Only a break of 1.9850 former resistance would put the bull trend on hold in the short term. Initial support is at the 1.9986 yesterday low.
UsdJpy Yen has recovered ahead of the 117.52 (50% retracement of the 115.15 to 119.89 advance), but a recovery beyond 119.04, the high from April 18 is minimally required to offset the immediate bear threat. A return of the bull trend would drive toward 119.88 and the nearby 120 psychological round resistance. Further advance would show 120.54 (76.4% retracement of the 122.20-115.15 decline). Initial minor support is 117.73 before 116.82 strong support. Still away from trend low 115.15 trendline support
UsdChf may break again the 1.2030 mid-March low and would targets 1.1984 trendline support and the nearby early-December low at 1.1881. Initial resistance is at the 1.2068 April 13 low, but minimally, a break of 1.2150, the high from April 17 would be necessary to relieve the heavy tone.
Resistance and Support:
|EURUSD ||GBPUSD ||USDJPY ||USDCHF |
|1.4848 T ||2.0230 T ||120.00 T ||1.2285 P |
|1.3666 T ||2.0100 T ||119.90 K ||1.2247 S |
|1.3595 M ||2.0085 M ||119.49 S ||1.2150 S |
|1.3625 ||2.0050 ||118.70 ||1.2050 |
|1.3525 M ||2.0000 M ||117.73 M ||1.2030 S |
|1.3482 M ||1.9986 S ||116.82 S ||1.1984 T |
|1.3395 S ||1.9850 P ||115.15 T ||1.1881 P |
|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..