Forex News Blog
Back to The Headlines
Monday April 30, 2007 - 08:35:52 GMT
Share This Story
ACM - www.ac-markets.com
Dollar dropped to record low after weak US GDP
By Jean-Claude Braha - ACM Advanced Currency Markets, Geneva, Switzerland
News and Events:
The Dollar dropped to a record low against the Euro on Friday after the weakest reading of US economic growth in 4 years suggested the economy could be at danger of falling behind the rest of the world.
US GDP growth slowed to only 1.3% annualized in Q1, from 2.5% in the final quarter of last year. Consensus was 1.8%. Consumption increased by 3.8%. Fast rising energy prices and falling consumer confidence suggest that consumption growth will slow in Q2. The biggest negative contribution from growth came from residential investment, which contracted by 17% and wiped 1% off GDP. Overall, this report will reignite talk of Fed rate cuts. If Q2 does prove to be even weaker, then the Fed would start to cut.
For the first time singe its launch in January 1999, the Euro rose at 1.3681 high. At Friday close, EurUsd rose to 0.46% at 1.3656. Many analysts and money managers said the falling Dollar is part of a long-term trend that is not about to end. EurJpy also rose to a record high of 163.33 in the wake of the Bank of Japan's decision to keep interest rates on hold at 0.5% and to cut their outlook on inflation.
UsdJpy was largely unchanged at 119.51 after hitting 119.77 intraday high. Sterling rose 0.37% against the Dollar at 1.9981 after hitting intraday 2.0044 high and 1.9866 low in volatile market. GbpUsd jumped to a 26-year high of 2.0133 two weeks ago.
Today's Key Issues (time in GMT):
8.00 Euro March Euro-zone M3 9.7% vs 10% (YoY) and 9.8% vs 9.9% 3 months Avg.
08.30 GB March BBA Mortgage Approvals 77k vs 54.7k
09.00 Euro April Euro-zone Consumer Confidence -3 vs -4
09.00 Euro April Euro-zone Industrial Confidence 7 vs 6
09.00 Euro April Euro-zone Economic Confidence 111.7 vs 111.2
09.00 Euro April Euro-zone Services Confidence 23 vs 22
09.00 Euro April Euro-zone CPI estimate 1.8% vs 1.9% (YoY)
09.30 GB April GfK Consumer Confidence Survey -8 unchanged
12.30 US March Personal Income 0.5% vs 0.6%
12.30 US March Personal Spending 0.5% vs 0.6%
12.30 US March Personal Consumption Expenditures Core 2.2% vs 2.4% (YoY)
12.30 CAD February GDP 0.2% vs 0.1% (MoM)
13.45 US April Chicago Purchasing Managers Index 54 vs 61.7
The Risk Today:
EurUsd cleared the 1.3666 December 2004 former all-time high and reached a new peak at 1.3681 on Friday. As long as last Monday's low at 1.3540 continues to hold, odds will favor another leg higher. There's little resistance above 1.3670 till 1.3750, where the rise from the January 1.2865 low would equal the distance made in the October-December (1.2483-1.3368) rise. Initial support comes in at 1.3584.
GbpUsd is holding above the 1.9824 April 3 breakout high. Last Friday 1.9866 low marks support of the bull trend. A return above congestion from 2.0064 to 2.0071 would clear the way for a run at 2.0133, April 18 trend high. 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. On the downside, a move below 1.9850 support would damage the underlying short-term bull.
UsdJpy breakout from consolidation has the 119.90 Mid-April high in its sights. There's little resistance above there till the Fibonacci 120.54 area (76.4% retracement of the 122.20-115.15 decline). Solid support is at last Monday's 118.23 low.
UsdChf remains bearish - the subsequent recovery from 1.1996 is holding below last Monday's 1.2128 high and only a move above there would put the underlying bear trend on hold. Focus remains on Key support from early December at 1.1881.
Resistance and Support:
|EURUSD ||GBPUSD ||USDJPY ||USDCHF |
|1.3750 T ||2.0133 T ||120.54 S ||1.2285 P |
|1.3681 S ||2.0071 M ||120.00 T ||1.2150 S |
|1.3666 K ||2.0000 K ||119.90 K ||1.2128 M |
|1.3615 ||1.9935 ||119.40 ||1.2075 |
|1.3584 M ||1.9866 S ||119.04 M ||1.2031 S |
|1.3540 S ||1.9850 P ||118.23 S ||1.1984 T |
|1.3395 S ||1.9615 S ||115.15 T ||1.1881 K |
|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
Tue 17 July 2018
AA: Major, A: High, B: Medium
AA 08:30 GB- Employment
A 13:15 US- Industrial Production
AA 14:00 US-Powell Testimony
Wed 18 July 2018
AA 08:30 GB- CPI
A 12:30 US- Housing Starts/Permits
AA 14:00 US-Powell Testimony
Thu 19 July 2018
AA 1:30 AU- Employment
AA 08:30 GB- Retail Sales
A 14:30 US- EIA Crude
A 12:30 US- Weekly Jobless
Fri 20 Jun 2018
A 12:30 CA- CPI/Retail Sales
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.