Forex News Blog
Back to The Headlines
Thursday August 23, 2007 - 09:14:41 GMT
Share This Story
ACM - www.ac-markets.com
Short-covering and risk-taking revival pushes USDJPY over 116.00
By James Brandt - ACM Advanced Currency Markets, Geneva, Switzerland
News and Events:
Traders focused on the outcome of Bank of Japan‚Äôs rate decision. The dollar-yen carry trade may be king again, squeezing out short positions. Investors were more focused on the voting result, as the BOJ voted by 8-1 to keep rates steady. It was widely believed that the non-unanimous vote would signal a possible rate hike in September or October as board member Atsushi Mizuno expressed a more hawkish view. Traders will keep an eye on any remarks from Governor Fukui.
The turn in the global equity markets has reignited an appetite for risk. Although conditions have not recovered completely, there has been a rebuilding of the carry trade by some big players in the market.
The Euro rose yesterday as traders interpreted the European Central Bank‚Äôs policy stance expressed by its president on August 2nd remains intact. What was he saying on August 2nd?... ‚ÄúStrong vigilance‚Ä¶‚ÄĚ indicated the ECB may still want to hike rates. Traders long EURUSD yesterday were paid handsomely on their positions.
Today‚Äôs most interesting chart is AUDJPY. With the carry trade coming back, at least temporarily, this pair has a way to go technically speaking. Our short term target is 99.55, the 61.8% Fibonacci retracement of the 107.88 ‚Äď 86.07 bear trend. Be careful, this is only for the brave.
Today's Key Issues (time in GMT):
08:30 UK Total Business Investment (QoQ) 2.50% vs. -0.60%
08:30 UK Total Business Investment (YoY)
12:30 US Initial Jobless Claims 315K vs. 322K
12:30 US Continuing Claims
The Risk Today:
EurUsd: The pair never broke down out of the upward trend, bouncing off the lower trend line at 1.3360 on August 16th. The pair has since retraced 38.2% from its 1.3860 high. Look for a breakout to 13610, the 50% retracement. On the downside, should EURUSD break down through 1.3450, look for the start of a big leg down to 1.3260.
GbpUsd: for those looking to Winnipeg this pair, a short at 1.9800 could be a very profitable bet down to 1.9620, a strong support level. On the upside, should we close above 1.9980 today, look for a move to 2.0043, the 38.2% retracement of the 2.0673-1.9654 slide.
UsdJpy The pair is bullish assuming the carry trade stays intact. There are no obstacles up to 117.90, the 50% retracement of the 124.22-111.58 slide, as long as the pair keeps above 114.60 at today‚Äôs close.
UsdChf finds strong support at 1.2032, however the pair may want to test the upper trend line again at 1.2180 before moving back into the long term downward channel.
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 18 December 2017
Register for the Amazing Trader
Amazing Trader EVENT RISK Calendar:
Mon 18 Dec
10:00 EZ- final HICP
Tue 19 Dec
09:00 DE- IFO Survey
13:30 US- Housing Starts/Permits
13:30 US- Current Account
Wed 20 Dec
15:00 US- Existing Homes Sales
15:30 US- EIA Crude
Thu 21 Dec
03:00 JP- BOJ Decision
13:30 CA- CPI & Retail Sales
13:30 US Weely Jobless
13:30 US- GDP
Fri 22 Dec
09:30 US- GB- GDP
13:30 US- core PCE Deflator & Presonal Income
15:00 US- New Homes Sales
15:00 US- final University of Michigan
17:00 US- early Closes
Mon 25 Dec
00:00 Christmas Holidays
Potential Trading Opportunities
John M. Bland, MBA
- POTENTIAL PRICE RISK: Medium Mon--10:00 GMT-- EZ- final November HICP. flash data are rarely changed.
- POTENTIAL PRICE RISK: HIGH- Medium Tue --09:00 GMT-- DE- IFO Survey. Key report but usually not a market-mover
- POTENTIAL PRICE RISK: HIGH- Medium- Tue --13:30 GMT-- US- Housing Starts and Permits. Leading indicators of activity
- POTENTIAL PRICE RISK: HIGH-Medium- Wed --15:00-- US- Existing Homes Sales. Top Housing statistic
- POTENTIAL PRICE RISK: Medium- Wed --15:30-- US- EIA Crude
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..