Forex News Blog
Back to The Headlines
Wednesday May 23, 2007 - 09:01:55 GMT
Share This Story
ACM - www.ac-markets.com
Dollar edges upward as rate cut view eases
By Jean-Claude Braha - ACM Advanced Currency Markets, Geneva, Switzerland
News and Events:
The Dollar traded near six-week highs against the Euro and a three-month peak against the Yen on Tuesday as trader s further trimmed expectations of a Federal Reserve interest rate cut this year. Unexpectedly resilient US economic data has prompted investors to scale back the implied chances of a Fed easing this year to around 70% from 100% at the beginning of the year.
Investors also focused on the first day of a two-day meeting between US Treasury Secretary Henry Paulson and Chinese vice Premier Wu Yi in Washington. Paulson warned the Chinese delegation Washington was growing increasingly impatient for Beijing to speed up policy changes that would help narrow the record US trade deficit. Analysts said the talks will be closely watched for any signs China is willing to let its currency strengthen more rapidly after last week's widening of the Yuan's daily trading band against the Dollar to 0.5% from 0.3%.
UsdChf was unchanged at 1.2302 after a report quoted Swiss National Bank President Jean-Pierre Roth saying the central Bank must be â€śparticularly vigilantâ€ť on the inflation risk posed by the Swiss. The Euro, which on Monday rose to its highest since August 1998 against the CHF, tumbled to an intraday low of 1.6530, before trading back up to 1.6547. The Euro has fallen more than two cents from its record high against the Dollar as speculators reduced bets on a further strengthening in the Euro-zone currency, which had swelled to a record high last week by one industry measure. In fact, Euro long positions have become so extended that even a unexpectedly strong reading in the Zew survey of German investors sentiment, which rose to an eight-month high in Aprils, failed to give the currency a boost on Tuesday. UsdJpy was slightly up on the day at 121.71, new three-month high.
Today's Key Issues (time in GMT):
08.30 ECB's Tumpel-Gugerell, EU's Almunia speak in Tallinn
08.30 GB Bank of England Minutes for Monetary Policy Meeting
10.00 Euro-Zone Industrial New Orders 1.1% vs -0.7% (MoM)
10.00 Euro-Zone Industrial New Orders 6.9% vs 4.7% (YoY)
12.30 CAD April Leading Indicator 0.4% vs 0.4% (MoM)
14.30 US Fed hosts Open Board Meeting on truth-in-lending regulations
15.45 US Treasury Secretary Paulson meets with Chinese Officials in Washington
The Risk Today:
EurUsd The sharp break from 1.3612 is holding just on May 11 1.3458 low. Only a break there would undermine the underlying bullish long-term trend and shifts focus to 1.3371 (38.2% retracement of 1.2865-1.3683). Until then, look for a move above last Thursday's 1.3545 high to revive the bull trend and bring focus back on the 1.3623 resistance.
GbpUsd remains heavy below 1.9875, keeping its focus on 1.9659, the 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 trend peak. Initial resistance cuts in at 1.9792.
UsdJpy is testing resistance at the 121.64 February 22 reaction high. Penetration there would shift focus to the January 122.22 top. Initial support holds 120.54 level.
UsdChf maintained a bullish tone and pushed above the 1.2285 early April high. Further gains beyond this level suggest the advance is more meaningful than just a correction and would target 1.2356. Initial support is 1.2196 before 1.2142.
Resistance and Support:
|EURUSD ||GBPUSD ||USDJPY ||USDCHF |
|1.3750 T ||2.0133 T ||122.22 T ||1.2356 S |
|1.3623 S ||2.0000 K ||122.05 M ||1.2309 S |
|1.3565 S ||1.9792 M ||121.64 S ||1.2285 P |
|1.3450 ||1.9740 ||121.60 ||1.2295 |
|1.3458 S ||1.9710 M ||120.54 M ||1.2196 M |
|1.3413 T ||1.9659 S ||119.55 T ||1.2142 M |
|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."
Elevate Your Trading With The Amazing Trader!
The Amazing Trader includes:
Upgrade Your Trading experience. Try the Amazing Trader
- Actionable trading levels delivered to YOUR charts in real-time.
- Live trading strategy sessions.
- Market Updates with Trading Tools.
Trading Ideas for 19 February 2018
Upgrade Your Trading. Try The Amazing Trader
GVI Trading. Potential Price Risk Scale
Mon 19 Feb 2018
AA: Major, A: High, B: Medium
00:00 CN, US- Holiday
Tue 20 Feb 2018
00:00 CN- Holiday
A 10:00 US- ZEW Survey
Wed 21 Feb 2018
00:00 CN- Holiday
A All Day flash PMIs
A 15:00 US- Existing Homes Sales
A 15:30 US- EIA Crude
AA 19:00 US- Fed Meeting Minutes
Thu 22 Feb 2018
A 09:00 DE- IFO Survey
A 09:30 GB- GDP
AA 13:30 CA- Retail Sales
A 13:30 US- Weekly Jobless
Fri 23 Feb 2018
A 10:00 EZ- Final HICP
AA 13:30 CA- CPI
John M. Bland, MBA
co-founding Partner, Global-View.com
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.