Forex News Blog
Back to The Headlines
Tuesday June 5, 2007 - 09:58:52 GMT
Share This Story
ACM - www.ac-markets.com
The Dollar weakened against major high-yielding currencies
By Jean-Claude Braha - ACM Advanced Currency Markets, Geneva, Switzerland
News and Events:
The Dollar weakened across the board on Monday, failing to sustain last week's gains as investors saw few prospects for a US rate hike, while the Euro and other currencies linked to rising interest rates strengthened. The Euro hit a record high against the low yielding Yen, while the Australian and New Zealand dollars also hit fresh multi-year peaks against the Japanese currency. On Monday, the EurJpy hit 164.36 high and last traded at 164.17. It already moved higher this morning up to 164.61.
The European Central Bank meets on Wednesday and is expected to raise its benchmark rate by 0.25% to 4% and possibly signal further increases. Central Banks in Britain, Australia and New Zealand are expected to hold rates steady at their own policy meetings this week. The prospect of higher rates in these economies has supported their currencies. In addition, with Japanese interest rages still stuck at 0.5%, the lowest in the developed world, investors continue to embrace carry trades, which involve borrowing Yen cheaply to finance purchases of higher-yield currencies and assets. Analysts said that “Risk appetite remains fairly strong, supporting carry trades. The ECB meeting this week should indicate that the ECB has a lot more to do while the economy in Japan is sluggish”.
Yesterday, a French presidential source said that President Nicolas Sarkozy will raise his concerns over Foreign Exchange rates at a Group of Eight summit in Germany this week. The source said Sarkozy planned to discuss currencies at an opening session of the summit on Thursday and would also raise the issue when he met Chinese President Hu Jintao on the Sidelines of the gathering in the Baltic resort of Heiligendamm.
Today's Key Issues (time in GMT):
08.00 EUR May Euro-zone PMI services 57.1 vs 57
08.30 GB May Purchasing Managers Index - services 57 vs 57.2
09.00 EUR April Euro-zone Retail Sales 0.5% vs 0.5% (MoM)
09.00 EUR April Euro-zone Retail Sales 1.9% vs 2.6% (YoY)
12:15 US Bernanke, Fukui, Trichet speak to conference in South Africa
14.00 US May ISM non-manufacturing 55.4 vs 56
14.00 US May ISM non-manufacturing prices paid 61 vs 63.5
15.00 US Fed's Warsh speaks in London on Financial Markets
15.30 US Treasury Secretary Paulson speaks on US-China Economic Relations
21.00 US June ABC Consumer Confidence previously -9
23.01 GB May Nationwide Consumer Confidence 92 vs 90
23.30 AUD Reserve Bank of Australia Rate Decision 6.25%
The Risk Today:
EurUsd market continues to favor further downside in EURUSD. A break of last Friday's 1.3393 new trend low would open the door for a run at 1.3370 (38.2% retracement of 1.2865-1.3683). Minor resistance hold 1.3521 level, last week's high.
GbpUsd cleared resistance at 1.9900, last week's high and a sustained move above this level would open the way toward 2.0000 key level. Only a move below the 1.9734 would open the door toward the 1.9677 trend low and resume bear trend towards 1.9659 (50% retracement of the 1.9184 to 2.0134 advance). Initial support is yesterday 1.9814 low.
UsdJpy bull trend remains intact with the focus on the January-February 122.10 to 122.22 highs. Not far off is 122.38 (61.8% of 135.18-101.65 big 5 years decline). Last Friday 122.14 high would mark minor resistance. Support lies at 120.86, May 25th low.
UsdChf recent corrective pullback bottomed last Tuesday at 1.2200, with the recovery from there likely to push to a new trend high above 1.2332 and test resistance at 1.2356 (61.8% retracement of the 1.2575-1.1994 decline). A break of 1.2200 would open the way toward 1.2125.
Resistance and Support:
|EURUSD ||GBPUSD ||USDJPY ||USDCHF |
|1.3750 T ||2.0133 T ||122.22 T ||1.2573 T |
|1.3623 S ||2.0000 K ||122.05 S ||1.2356 S |
|1.3521 M ||1.9964 M ||121.99 M ||1.2309 M |
|1.3500 ||1.9925 ||121.90 ||1.2230 |
|1.3416 T ||1.9677 T ||120.54 M ||1.2200 M |
|1.3393 M ||1.9659 S ||119.55 T ||1.2154 T |
|1.3370 S ||1.9522 T ||118.90 S ||1.2125 S |
|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..