Forex News Blog
Back to The Headlines
Wednesday August 15, 2007 - 09:14:59 GMT
Share This Story
ACM - www.ac-markets.com
Dollar rises to 1-month high amid credit fears
By Jean-Claude Braha - ACM Advanced Currency Markets, Geneva, Switzerland
News and Events:
The dollar rose to a one-month high against a basket of major currencies on Tuesday as growing signs that U.S. credit market turmoil is spreading overseas left investors seeking safety.
News that a Canadian trust was not able to repay some short-term debt sent investors slashing their bets against the greenback, particularly after last week's news that French bank BNP Paribas had frozen some funds because of sub-prime concerns.
Analysts said "Across global asset prices, it looks like there is some position unwinding going on and that is filtering through to FX where some of the biggest positions are long Euro, long Sterling and short Dollar".
The EurUsd was down 0.55% to 1.3532 the lowest in six weeks. It began to weaken overnight after reports that Spanish bank Santander is facing up to 2.2 billion euro ($3 billion) exposure to high-risk U.S. loans.
Against the yen, the EurJpy was down 1.16% at 159.04 while the UsdJpy was down 0.61% at 117.55, as major U.S. stock indexes all fell more than 1 percent.
The equities markets on Wall Street continued to dictate the yen's direction. For the past several weeks, falling stocks have usually been interpreted as weakening appetite for risk, lifting the Yen.
GbpUsd dipped below 2.0000 after UK July inflation came in below the Bank of England's 2 percent target rate for the first time in over a year. It last traded at 1.9956, down 0.78%.
The UsdCad rose 1.24% to 1.06900 after two Canadian trusts said on Tuesday that they were unable to place asset-backed deals. On Monday, niche Canadian investment bank Coventree Inc. said the credit problems caused by losses in the U.S. sub-prime mortgage sector had left it unable to replace maturing debt. Analysts said, "We got a bit of news out that there might be more trouble up here in the asset-backed sub-prime sector".
The euro faced pressure as expectations of a rate hike in the euro zone were offset by weaker-than-expected growth data and further European Central Bank action to calm short-dated money markets. That contrasted somewhat with U.S. data showing the U.S. trade balance unexpectedly narrowed in June, while July producer prices rose more than expected. Federal Reserve officials have said inflation remains their main concern and analysts said signs of accelerating inflation would prevent the central bank from cutting interest rates.
Today's Key Issues (time in GMT):
08.30 GB Bank of England Minutes for August 1-2 meeting
08.30 GB July Jobless Claims change -10k vs -13.8k
08.30 GB July ILO Unemployment Rate 5.4% vs 5.4%
12.00 NOK Norges Bank rates decision 4.5% to 4.75% vs 4.5%
12.30 US August Empire Manufacturing Index 18.5 vs 26.5
12.30 US July CPI inflation 0.2% vs 0.2% (MoM)
12.30 US July CPI inflation 2.4% vs 2.7% (YoY)
12.30 US July CPI ex-food & energy 0.2% vs 0.2% (MoM)
12.30 US July CPI ex-food & energy 2.2% vs 2.2% (YoY)
12.30 CAD June Manufacturing shipments -0.2% vs -0.1%
13.15 US July Capacity Utilization 81.8% vs 81.7%
13.15 US July Industrial Output 0.3% vs 0.5% (MoM)
17.00 US August NAHB Housing Market Index 23 vs 24
The Risk Today:
EurUsd correction from July 1.3852 high accelerate yesterday and early this morning breaking down 1.3610 and 1.3550 supports. Initial resistance holds 1.3550 pivot point and former support. Renewed strength over this may focus again on 1.3750 resistances and pivot point. Looking for supports around 1.3500 and at 1.3309 on the 1-year up Trendline.
GbpUsd extended downtrend from 2.0654 July high and broke yesterday 2.0017 support (61.8% retracement of 1.9624 to 2.0654 advance) and 2.0000 pivot point. Rebound looks limited to 2.0103 former support. .
UsdJpy remains weak under 119.50 resistance and last week Trendline resistance at 119.78. Tested this morning; 116.58 holds Trendline support. Downtrend remains strong and further weakness will open the door toward 115.59 Keylevel. Strong resistance holds 119.50 end of July high. Initial resistance holds 118.38 Friday/Monday closing/opening.
UsdChf extend its recovery from early August 1.1819 low to 1.2111 yesterday close. Further strength may open the way toward 1.2183 (38.2% retracement of 1.2771 â€“ 1.1819 decline). Market traded down to 1.1819 last week new key support. Former resistance 1.2044 marks initial support.
Resistance and Support:
|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..