Forex News Blog
Back to The Headlines
Friday May 18, 2007 - 08:40:28 GMT
Share This Story
ACM - www.ac-markets.com
Dollar near 3-month high against Yen before G8 meeting
By Jean-Claude Braha - ACM Advanced Currency Markets, Geneva, Switzerland
News and Events:
The Dollar held near a three-month high against the Yen on Thursday after an unexpectedly large rise in US business activity, backing the view that interest rates will stay on hold for some time. The strong reading in the Philadelphia Federal Reserveâ€™s business activity index for May followed data showing that initial filing for US unemployment fell for the fifth straight week.
Analysts said the data backed a view that the US manufacturing sector recovers after a recent slowdown, and that the Fed probably will not cut interest rate from 5.25% this year.
The Yen weakened after the Bank of Japan left interest rates at 0.5% as expected yesterday, following data that showed the Japanese economy grew at a slightly softer-than-expected pace in the 1Q. Analysts expect the BoJ to raise rates to 0.75% as soon as August or September. However, they also expect the European Central Bank and the Bank of England to have raised borrowing costs as well, keeping the Yen at a disadvantage against higher yielding currencies.
Looking ahead, the only major economic data due today in US is the University of Michigan Consumer Sentiment survey for May. The Index is expected to decline to 86.5, from Aprilâ€™s final reading of 87.1; pushed down by rising gasoline prices and slowing jobs growth.
Today's Key Issues (time in GMT):
G8 meeting of Finance Ministers start
08.30 GB April Retail Sales 0.6% vs 0.3% (MoM)
08.30 GB April Retail Sales 4.7% vs 4.8% (YoY)
12.30 CAD March Retail Sales 0.7% vs 0.1% (MoM)
12.30 CAD March Retail Sales Ex-Auto 1% vs 1% (MoM)
14.00 US May University of Michigan Consumer Confidence survey 86.5 vs 87.1
The Risk Today:
EurUsd sold off sharply from Wednesday's 1.3610 high, but weakness below 1.3458 would be necessary to undermine the broader bullish tone. On the up-side, a break of 1.3610 would target 1.3623 en route to the 1.3681 trend high from end April. This would open the way toward 1.3750 trendline resistance.
GbpUsd remains heavy, having tested again 1.9771 support (38.2% retracement of the 1.9184-2.0134 advance). Renewed slippage beyond 1.9746 would reinforce the heavy tone and pave the way for an extension to 1.9659 (50% retracement of the 1.9184 to 2.0134 advance). Only a return above last week's 2.0000 high would reverse the immediate heavy tone originating from the 2.0133 peak.
UsdJpy is set for further gains having cleared the 120.55 level - a sign that recent sideways action is resolving to the upside. There's little resistance above this area until the 121.64 high from February 22. Maintain a bullish bias above last Friday's 119.48 low.
UsdChf maintains the pattern of higher highs and higher lows originating from late April 1.1994 low. Further gains beyond 1.2285 are needed to suggest the advance is anything more meaningful than a correction. Initial support is around last Wednesday's 1.2142 low.
Resistance and Support:
|EURUSD ||GBPUSD ||USDJPY ||USDCHF |
|1.3750 T ||2.0133 T ||122.22 T ||1.2388 S |
|1.3623 S ||2.0071 M ||122.05 M ||1.2309 S |
|1.3565 S ||2.0000 K ||121.64 S ||1.2285 P |
|1.3495 ||1.9745 ||121.25 ||1.2275 |
|1.3458 S ||1.9710 M ||120.54 M ||1.2142 M |
|1.3413 T ||1.9659 S ||119.55 T ||1.2083 S |
|1.3370 S ||1.9522 T ||118.90 S ||1.2002 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 9 July 2018
AA: Major, A: High, B: Medium
AA 12:00 EZ- Draghi EU Parliament Testimony
Tue 10 July 2018
AA 08:30 GB- Ind/Prod Output, Trade
AA 09:00 DE- ZEW Survey
Wed 11 July 2018
A 12:30 US- PPI
A 14:00 CA- Bank Of Canada Decision
A 14:30 US- EIA Crude
Thu 12 July 2018
AA 12:30 US- CPI
Fri 13 July 2018
A 14:00 US- Prelim 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.