Daily Forex Bullteins and Market News Analysis

Forex Market Bulletin, Aug 04, 2011

noreply@blogger.com (Daily Forex Market News and Bullteins) — Thu, 04 Aug 2011 08:38:00 +0000

Pulse of the Market

· Greenback slips as risk aversion cools and NFPs are pulling investors forward

· Single Currency puts in for a modest bounce ahead of an important ECB decision

· Swiss Franc retracement and volatility tame despite SNB removing all the stops

· Australian Dollar struggles to leverage the sentiment rebound after weak data

The Greenback ended yesterday’s trading session on a mixed note a day after President Obama signed the debt relief bill into law. The measure gave the Treasury Department breathing room and will cut the deficit by more than $2T over the next decade. While a strong step in the right direction, the bill falls short of what ratings agencies Moody's, Fitch and S&P were looking for. As such, their negative outlook for the U.S's AAA credit rating remains in place. The deal was a compromise on both sides of the passageway with the Democrats giving up their push for an increase in Federal tax revenues and the Republicans gaining far smaller cuts to government spending than initially sought. It is far from ideal from any perspective, but it does put an end to the so called "debt crisis" and avoids an imminent default. As such, investors' attention has shifted back towards the larger theme of a slowing global economy. ISM manufacturing disappointed earlier this week as the measure showed the sector that had led the economic recovery through much of 2010 slowing by more than expected. Yesterday’s, ISM non-manufacturing also showed a decline, registering 52.7, down from 53.3 in June. The Euro traded in a wide range yesterday, but has pulled back from its recent weekly highs. The Single Currency gained, supported as the primary alternative to the Dollar, as fears remain that the U.S may face a credit downgraded despite the recent debt deal. However, the Euro's upside has been limited ahead of a key ECB meeting today at which the Bank is unlikely to raise interest rates. British Pound was higher yesterday supported by an unexpectedly positive PMI services report and as investors turn away from both the U.S and Euro Zone. U.K services unexpectedly grew at the fastest pace in four months, led by demand at business services and tech companies. A decline had been expected, and as such, the positive reading has translated into a boost for the Cable. The Japanese Yen gained yet again, inching back towards its all time highs in the low 76.00. Japanese Finance Minister Noda told reporters yesterday that the BoJ would aim for "maximum effect" in any intervention to weaken the Yen. The Commodity Currencies traded lower yesterday with the Canadian Dollar, Australian Dollar and New Zealand Dollar all weakening.

Time(GMT)	Economic Release	IMP	Actual	Forecast	Prior
	Bank of Japan Rate Decision	High			0.10%
11:00	BOE Asset Purchase Target (AUG)	High		200B	200B
11:00	Bank of England Rate Decision	High		0.50%	0.50%
11:45	European Central Bank Rate Decision	High		1.50%	1.50%
12:30	U.S Continuing Claims (JUL 23)	Low		3700K	3703K
12:30	U.S Initial Jobless Claims (JUL 30)	Low		405K	398K
23:50	Japan Official Reserve Assets (JUL)	Low			$1137.8B

Euro

The Single Currency enjoyed a rally in the European trading session after being under pressure most of the week. EUR/CHF was the main source of strength up over 2% on Swiss intervention via its central bank. July PMI services slipped to 51.4 vs. 53.7 previously. Overall, the EUR/USD traded with a low of 1.4142 and a high of 1.4343 before closing the day around 1.4319 in the New York session.

Yen

The Japanese Yen surged in the Asian trading session today as the MOF confirmed intervention and the BOJ ended it's rate meeting one day early. EUR/JPY and AUD/JPY surged with the USD/JPY which itself moved from 77.00 Yen to 79.00 Yen. Overall, the USD/JPY traded with a low of 76.77 and a high of 77.39 before closing the day around 77.05 in the New York session.

British Pound

The British Pound tracked the stocks and Euro higher supported on stronger than expected PMI data. July Services PMI jumped to 55.4 vs. 53.9 previously. GBP/CHF surged with the Swiss intervention while GBP/JPY soared with Japanese intervention. Overall, the GBP/USD traded with a low of 1.6250 and a high of 1.6430 before closing the day at 1.6424 in the New York session.

Canadian Dollar

The Canadian Dollar touched the lowest level in three weeks in yesterday’s trading session as crude oil dropped and U.S service industries grew at the slowest pace since February 2010, adding to concern Canada’s largest trading partner is faltering. Overall, USD/CAD traded with a low of 0.9566 and a high of 0.9645 before closing the day at 0.9621 in the New York session.

Australian Dollar

The Australian Dollar found support under 1.0700 after falling when local economic data missed expectations. June Retail Sales fell -0.1% vs. +0.3% forecast m/m. AUD/JPY reacted to the USD/JPY intervention in Asia but the AUD/USD is struggling. Overall, the AUD/USD traded with a low of 1.0777 and a high of 1.0787 before closing the day at 1.0740 in the New York session.

Euro-Yen

EUR/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is also issuing a bullish stance. The RSI is above 52 and lies above the neutral zone. Overall, the cross has gained 0.77%.

Sterling-Yen

Currently GBP/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing bullish and MACD is also indicating a bullish stance. The RSI is above 59 reading and lies above the neutral zone. The pair has gained 0.69%.

Aussie-Yen

Currently, the cross is trading below 14, 50 and 100 days moving average. Fast stochastic gives bullish and MACD is indicating a bearish stance. The RSI is above 48 reading and lies below the neutral region. The pair has lost 0.32%.

Euro-Sterling

This cross is trading above below 14, 50 and 100 days moving average. Fast stochastic is indicating a bearish and MACD is also issuing a bearish signal. The RSI is above 37 reading and lies below the neutral region. The pair has lost 0.07%.

Sterling-Swiss

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bullish stance and MACD is indicating a bearish tone. The RSI is above 35 and lies below the neutral region. The pair has gained 1.75%.

Appendix

Daily Pivot Points
			Trading Range
Contract	S3	S2	S1	Pivot	R1	R2	R3
EUR/USD	1.3992	1.4067	1.4193	1.4268	1.4394	1.4469	1.4595
USD/JPY	76.13	76.45	76.75	77.07	77.37	77.69	77.99
GBP/USD	1.6126	1.6188	1.6306	1.6368	1.6486	1.6548	1.6666
USD/CHF	0.7431	0.7520	0.7609	0.7698	0.7787	0.7876	0.7965
USD/CAD	0.9497	0.9532	0.9576	0.9611	0.9655	0.9690	0.9734
EUR/JPY	107.87	108.46	109.40	109.99	110.93	111.52	112.46
GBP/JPY	124.33	124.79	125.68	126.14	127.03	127.49	128.38
CHF/JPY	96.86	97.99	99.02	100.15	101.18	102.31	103.34
AUD/JPY	80.78	81.41	82.14	82.77	83.50	84.13	84.86
EUR/GBP	0.8625	0.8659	0.8688	0.8722	0.8751	0.8785	0.8814
EUR/CHF	1.0478	1.0637	1.0830	1.0989	1.1182	1.1341	1.1534
GBP/CHF	1.2076	1.2238	1.2441	1.2603	1.2806	1.2968	1.3171

Sources: News, Charts & Quotes (Courtesy: Reuters, US Department Of Treasury)

Forex Market Bulletin, Aug 03, 2011

noreply@blogger.com (Daily Forex Market News and Bullteins) — Wed, 03 Aug 2011 08:23:00 +0000

Pulse of the Market

· U.S government pushed through a budget solution just before the U.S found itself in a technical default

· Euro’s slide relatively calmed while credit default swap rates on France, Italy and Spain hit record highs

· British Pound countenance an additional potential economic beat in service sector data

· Japanese Yen has been rising speedy in recent days and that has set alarm bells ringing

The Greenback traded higher yesterday, gaining against a majority of its peers as it appears the government will successfully raise the debt ceiling. After weeks of intense bipartisan divide, the House of Representatives passed through a plan to raise the debt ceiling and cut government spending by a wide margin. However, with the debt debate in the rear view mirror, investors have turned to more pressing matters in the U.S like sluggish economic growth, a worsening manufacturing sector, falling retail sales and eroding consumer and business confidence. Nevertheless, the U.S Dollar remains on firm ground as its historical role as a "safe haven" asset will likely remain intact with no imminent default on debt looming. The Euro consolidated towards the bottom end of its ranges yesterday as Euro Zone debt came back into focus. Much of the region's problems had fallen out of focus over the past two weeks with investors watching U.S struggles with the debt ceiling. A report yesterday showed that Euro Zone PPI unexpectedly slowed to 5.9% from 6.2% in the previous month, likely reducing the scope for further ECB tightening. Investors have begun to fear that Euro Zone officials were so focused on Greece during their series of emergency meetings in July, that the EFSF did not sufficiently address the potential for a Spanish or Italian bailout. On the other hand, concern that the U.S government may still lose its AAA credit rating will provide support for the Euro as the primary alternative to the U.S Dollar in the near term. British Pound remains towards the bottom of its recent ranges yesterday after weak manufacturing and construction data. A gauge of construction fell from 53.6 in June to 53.5 in July and manufacturing tumbled from 51.4 to 49.1, the lowest reading in more than two years. The Confederation of British Industry cut its growth forecast for the U.K economy yesterday after GDP hardly grew in second quarter. The Japanese Yen has eased from its recent highs, but still remains well supported in the low 77.00 Yen. A Japanese newspaper reported that in recent talks between Japanese and U.S officials, the Japanese expressed their intent to intervene and weaken the Yen. Investors are also speculating that Japanese officials may amplify the effects of the intervention by easing monetary policy as well. The Commodity Currencies were weaker in yesterday’s trading session as slowing global economic growth dampens demand for the high yielding currencies.

Time(GMT)	Economic Release	IMP	Actual	Forecast	Prior
07:55	German Purchasing Manager Index Services (JUL)	Medium		52.9	52.9
08:00	Euro Zone Purchasing Manager Index Services (JUL)	Medium		51.4	51.4
08:30	U.K Purchasing Manager Index Services (JUL)	Medium		53.2	53.9
09:00	Euro Zone Retail Sales (MoM) (JUN)	Medium		0.5%	-1.3%
12:15	U.S ADP Employment Change (JUL)	Medium		100K	157K
14:00	U.S Factory Orders (JUN)	Medium		-0.8%	0.8%
14:00	U.S ISM Non-Manufacturing Composite (JUL)	Medium		53.5	53.3

Euro

The Single Currency ended yesterday’s trading session lower against the U.S Dollar. Italian debt was in focus amid the yield on 10 yr bonds continuing to surge higher with investors fleeing the potential next domino to fall. The U.S stock weakness added pressure on EUR/CHF and EUR/JPY and the EUR/USD slipped towards 1.4150. Overall, the EUR/USD traded with a low of 1.4150 and a high of 1.4282 before closing the day around 1.4196 in the New York session.

Yen

The Japanese Yen was well supported with USD/JPY falling towards 77.00 Yen and AUD/JPY crashing lower on risk aversion and the 200 point fall in U.S stocks. The outlook is for more losses with the market testing the BOJ about intervention threats and the lack of support for the U.S Dollar as a safe haven. Overall, the USD/JPY traded with a low of 76.94 and a high of 77.82 before closing the day around 77.12 in the New York session.

British Pound

The British Pound was under pressure against the safe havens but losses were contained with plenty of support under 1.6300. GBP/CHF slipped with EUR/CHF to all time lows but EUR/GBP fell back to 0.8700 as the Euro concerns continued. Overall, the GBP/USD traded with a low of 1.6223 and a high of 1.6328 before closing the day at 1.6297 in the New York session.

Canadian Dollar

The Canadian Dollar fell in yesterday’s trading session, on renewed concerns that slowing growth in the U.S would crimp domestic growth, on a day when the U.S Senate approved a hike in debt ceiling. The Canadian Dollar began its trading week on a weaker note and slid further as personal spending data in the U.S, which consumes nearly 80% of Canada's exports, came in below expectations. Overall, USD/CAD traded with a low of 0.9546 and a high of 0.9616 before closing the day at 0.9611 in the New York session.

Australian Dollar

The Australian Dollar was under heavy selling pressure falling over two big figures on a combination of risk aversion and a dovish RBA statement after the RBA held at 4.75%. Concerns about global growth and market stability trumped the high inflation readings and this pared back investors' expectations for rate hikes later this year. Overall, the AUD/USD traded with a low of 1.0777 and a high of 1.1006 before closing the day at 1.0779 in the New York session.

Euro-Yen

EUR/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is also issuing a bearish stance. The RSI is above 32 and lies below the neutral zone. Overall, the cross has lost 0.44%.

Sterling-Yen

Currently GBP/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing bearish and MACD is also indicating a bearish stance. The RSI is above 34 reading and lies below the neutral zone. The pair has lost 0.04%.

Aussie-Yen

Currently, the cross is trading below 14, 50 and 100 days moving average. Fast stochastic gives bearish and MACD is also indicating a bearish stance. The RSI is above 36 reading and lies below the neutral region. The pair has lost 1.78%.

Euro-Sterling

This cross is trading above below 14, 50 and 100 days moving average. Fast stochastic is indicating a bearish and MACD is also issuing a bearish signal. The RSI is above 38 reading and lies below the neutral region. The pair has lost 0.39%.

Sterling-Swiss

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is also indicating a bearish tone. The RSI is above 23 and lies below the neutral region. The pair has lost 2.64%.

Appendix

Daily Pivot Points
			Trading Range
Contract	S3	S2	S1	Pivot	R1	R2	R3
EUR/USD	1.4005	1.4077	1.4137	1.4209	1.4269	1.4341	1.4401
USD/JPY	75.89	76.41	76.77	77.29	77.65	78.17	78.53
GBP/USD	1.6132	1.6178	1.6237	1.6283	1.6342	1.6388	1.6447
USD/CHF	0.7313	0.7467	0.7546	0.7700	0.7779	0.7933	0.8012
USD/CAD	0.9496	0.9521	0.9566	0.9591	0.9636	0.9661	0.9706
EUR/JPY	106.96	108.08	108.78	109.90	110.60	111.72	112.42
GBP/JPY	123.32	124.30	125.00	125.98	126.68	127.66	128.36
CHF/JPY	96.66	97.56	99.35	100.25	102.04	102.94	104.73
AUD/JPY	79.78	81.43	82.28	83.93	84.78	86.43	87.28
EUR/GBP	0.8613	0.8655	0.8683	0.8725	0.8753	0.8795	0.8823
EUR/CHF	1.0310	1.0565	1.0694	1.0949	1.1078	1.1333	1.1462
GBP/CHF	1.1912	1.2167	1.2297	1.2552	1.2682	1.2937	1.3067

Sources: News, Charts & Quotes (Courtesy: Reuters, US Department Of Treasury)

Forex Market Bulletin, Aug 02, 2011

noreply@blogger.com (Daily Forex Market News and Bullteins) — Tue, 02 Aug 2011 12:35:00 +0000

Pulse of the Market

· Greenback on boundary with deficit time limit and ISM report added fuel to volatility

· Euro haggard in the middle of Dollar volatility, EU trouble and upcoming ECB decision

· British Pound tumbles with risk and helped along by manufacturing contraction

· Japanese Yen give the impression of being at volatility as intervention oratory heats up

The Greenback ended yesterday’s trading session higher against the basket of major currencies. The early gains in the currency and equities were wiped away in a perfect reflection of the prevailing sentiment in the markets yesterday. News that lawmakers in Washington reached a deal over the weekend to raise the debt ceiling triggered widespread enthusiasm in the Asian and early European trading sessions. However this enthusiasm evaporated quickly once the U.S stock market opened for trading and investors received another piece of disappointing economic data. Even though the possibility of losing its prized AAA rating is the greatest risk for the U.S Dollar right now, the lack of a reasonable alternative to the Dollar suggests that a AA rating won’t stop investors from seeking safety in the Greenback. However, restoring investor confidence is a function of getting their fiscal house in order and that seems to be the U.S government's top. Although the troubles are coming out of the U.S, risk aversion has overtaken the market and high beta currencies such as the Euro, British Pound, Australian and Canadian Dollars have suffered as a result. Euro ended the session sharply lower against the U.S Dollar following risk aversion which drove high yielding currencies lower but the Euro was also pressured by renewed concerns about contagion. Rising credit default swap spreads for Italy and Spain has turned the focus to the Euro Zone’s third largest nation. European sovereign debt troubles have played second contrivance to the U.S problems but when the votes are cast and rating agencies have made their decisions about downgrading U.S debt, investors will shift their focus back to fundamentals. In this case, the attractiveness of the Euro will depend on how the German and French economies fare compared to the U.S. The British Pound strengthened against the Euro but weakened against the Greenback as U.K manufacturing unexpectedly shrank the most in more than two years in July. Factories also cut jobs and domestic demand weakened further. Operating conditions deteriorated for the first time in two years during July, a report by Market Economics and the Chartered Institute of Purchasing and Supply showed. The Japanese Yen strengthened against all the major currencies with the exception of the Swiss Franc and commodity currencies as investors seek out safe haven assets. The Yen continued to strengthen as investors further speculated that President Barack Obama and congressional leaders plan to prevent a default and lower the deficit will slow growth in the U.S.

Time(GMT)	Economic Release	IMP	Actual	Forecast	Prior
07:15	Switzerland Retail Sales (Real) (YoY) (JUN)	Medium			-4.1%
07:30	Switzerland SVME-Purchasing Managers Index (JUL)	Medium		52.5	53.4
08:30	U.K Purchasing Manager Index Construction (JUL)	Medium		53.1	53.6
09:00	Euro Zone Producer Price Index (MoM) (JUN)	Medium		0.1%	-0.2%
12:30	U.S Personal Spending (JUN)	Medium		0.2%	0.0%
16:00	U.S Senate Votes on Debt-Limit Bill	High

Euro

The Single Currency traded sharply lower against the U.S Dollar in yesterday’s trading session. The positive mood from Asia waned in Europe and turned to heavy selling in both stocks and the EUR/USD. June EU Unemployment remained at 9.9%. Italian Debt is in focus after the downgrade of some investments and the EUR/USD tumbled with U.S stocks to 1.4200. The EUR/USD traded with a low of 1.4184 and a high of 1.4452 before closing the day around 1.4249 in the New York session.

Yen

The Japanese Yen rallied sharply in Asian trading session to above 78.00 Yen before reversing aggressively to fresh multi month lows on EUR/JPY selling and U.S debt downgrade concerns. Intervention threats at these levels are growing louder and the shorts are careful. Overall, the USD/JPY traded with a low of 76.28 and a high of 78.03 before closing the day around 77.16 in the New York session.

British Pound

The British Pound rallied in Asia before falling back to opening levels and finding support under 1.6300. EUR/GBP fell as the Pound outperformed relative to the troubled Euro. GBP/JPY was extremely volatile falling from 128.00 Yen to 124.00 Yen as the USD/JPY turned wildly. UK Factory PMI slipped into contractionary levels for the first time in 2 years. Overall, the GBP/USD traded with a low of 1.6236 and a high of 1.6474 before closing the day at 1.6294 in the New York session.

Canadian Dollar

The Canadian Dollar weakened on concern that the U.S economy, the main destination for Canadian exports, is losing momentum amid political stalemate delays to raising the U.S debt ceiling. Statistics Canada report showed that the Canadian economy unexpectedly contracted in May by the most in two years. Overall, USD/CAD traded with a low of 0.9489 and a high of 0.9603 before closing the day at 0.9569 in the New York session.

Australian Dollar

The Australian Dollar soared above 1.1000 on the strong AUD/JPY rally in Asian session but could not hold onto the gains and reversed to fresh day lows in the U.S trading session as stock markets slumped. The outlook is mixed with buyers cautious of being caught long if the debt deal fails. Overall, the AUD/USD traded with a low of 1.0921 and a high of 1.1064 before closing the day at 1.0969 in the New York session.

Euro-Yen

EUR/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is also issuing a bearish stance. The RSI is above 34 and lies below the neutral zone. Overall, the cross has lost 0.55%.

Sterling-Yen

Currently GBP/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing bullish and MACD is indicating a bearish stance. The RSI is above 38 reading and lies below the neutral zone. The pair has lost 0.48%.

Aussie-Yen

Currently, the cross is trading below 14, 50 and 100 days moving average. Fast stochastic gives bullish and MACD is also indicating a bullish stance. The RSI is above 47 reading and lies above the neutral region. The pair has gained 0.13%.

Euro-Sterling

Sterling-Swiss

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is also indicating a bearish tone. The RSI is above 26 and lies below the neutral region. The pair has lost 1.22%.

Appendix

Daily Pivot Points
			Trading Range
Contract	S3	S2	S1	Pivot	R1	R2	R3
EUR/USD	1.3870	1.4027	1.4138	1.4295	1.4406	1.4563	1.4674
USD/JPY	74.53	75.41	76.28	77.16	78.03	78.91	79.78
GBP/USD	1.5957	1.6097	1.6195	1.6335	1.6433	1.6573	1.6671
USD/CHF	0.7501	0.7615	0.7724	0.7838	0.7947	0.8061	0.8170
USD/CAD	0.9390	0.9440	0.9504	0.9554	0.9618	0.9668	0.9732
EUR/JPY	104.82	106.76	108.36	110.30	111.90	113.84	115.44
GBP/JPY	119.44	121.81	123.77	126.14	128.10	130.47	132.43
CHF/JPY	96.00	96.75	97.62	98.37	99.24	99.99	100.86
AUD/JPY	81.13	82.43	83.54	84.84	85.95	87.25	88.36
EUR/GBP	0.8626	0.8673	0.8709	0.8756	0.8792	0.8839	0.8875
EUR/CHF	1.0551	1.0788	1.0975	1.1212	1.1399	1.1636	1.1823
GBP/CHF	1.2024	1.2303	1.2533	1.2812	1.3042	1.3321	1.3551

Sources: News, Charts & Quotes (Courtesy: Reuters, US Department Of Treasury)

Forex Market Bulletin, Aug 01, 2011

noreply@blogger.com (Daily Forex Market News and Bullteins) — Mon, 01 Aug 2011 08:20:00 +0000

Pulse of the Market

· Obama said that leaders of both parties had approved an agreement to raise the U.S debt ceiling

· Euro Zone economic docket heavy with EU crisis, ECB decision and Italian GDP on deck

· British Pound might come across diminutive encouragement from Bank of England meeting

· Japanese Yen knocked into anti Dollar sentiment and paying no attention to BoJ decision

The U.S Dollar gained against major rivals in today’s Asian trading session, after U.S lawmakers reached an agreement on a deal to raise the debt ceiling and reduce the deficit. Political leaders in Washington agreed to raise the U.S government debt ceiling in two stages by at least $US2.2 trillion from the current $US14.3 trillion level. Whereas, the Greenback traded lower against the basket of major currencies on Friday. On the economic docket in Friday’s session, the U.S economy expanded by an annualized pace of only 1.3 percent in the second quarter against a forecast of 1.8 percent. Personal consumption grew only 0.1 percent between April and June compared to a downwardly revised growth of 2.1 percent in the first quarter. Manufacturing activity in the Chicago region also slowed while consumer confidence numbers were revised lower. The Euro traded higher against the U.S Dollar in Friday’s trading session. After selling off aggressively between the Asian and European trading sessions, the surprisingly weak U.S GDP numbers renewed demand for Euros. Earlier in Friday’s session, Moody’s decision to put Spain’s credit rating on negative watch caused the currency to plunge sharply as European contamination fears overtook concerns about the credit worthiness of the U.S Dollar. However that changed quickly after investors realized that both parts of the world have major fiscal troubles but growth in the Euro Zone is healthier than growth in the U.S. Germany and France reported strong consumer spending numbers, with retail sales in the Euro Zone’s largest country growing by a whopping 6.3 percent. The British Pound ended the day higher against the U.S Dollar and slightly lower against the Euro despite mixed economic data. Consumer confidence deteriorated in July with the GfK index falling from -25 to -30, a 3 month low. According to Nationwide, house prices rose 0.2 percent in July and mortgage approvals rose from 46.4K to 48.4K. Consumer credit also increased but net lending and money supply decreased. With less fiscal problems than the U.S and Europe, the Pound gained value against the Euro and U.S Dollar last week. The Japanese Yen continued to strengthen against all the majors with the exception of the Swiss Franc. The month over month industrial production printed at 3.9 percent versus the 4.5 percent eyed. The surprise came as major corporations cautioned the threat of the record high Yen.

Time(GMT)	Economic Release	IMP	Actual	Forecast	Prior
	GBP Halifax House Price (3MoY) (JUL)	Low		-2.8%	-3.5%
00:40	U.S President Obama's Press Conference on Debt Agreement	Medium
07:55	German Purchasing Manager Index Manufacturing (JUL)	Medium		52.1	52.1
08:00	Euro Zone Purchasing Manager Index Manufacturing (JUL)	Medium		50.4	50.4
08:30	U.K Purchasing Manager Index Manufacturing (JUL)	Medium		51.0	51.3
09:00	Euro Zone Unemployment Rate (JUN)	Medium		9.9%	9.9%
14:00	U.S ISM Manufacturing (JUL)	High		55.0	55.3

Euro

The Single was back towards the top of its weekly range after trading through a volatile session. The Euro initially came under selling pressure after Moody's put Spain's sovereign debt rating under review and downgraded the rating of six of its provinces. Fear that the debt contagion is spreading to larger Euro Zone members, most notably Spain and Italy, has limited the Euro's upside potential. Overall, the EUR/USD traded with a low of 1.4228 and a high of 1.4412 before closing the day around 1.4368 in the New York session.

Yen

The Japanese Yen continues to grind higher on Friday, edging ever closer to the all time high reached in wake of the earthquake and tsunami earlier this year. The Yen's appeal as a "safe haven" currency has prompted the recent gains as both the U.S and Euro Zone struggled with mounting debt. Officials have made it clear that intervention is unlikely. Overall, the USD/JPY traded with a low of 76.88 and a high of 77.85 before closing the day around 76.96 in the New York session.

British Pound

The British Pound was higher in Friday’s trading session. A measure of British consumer sentiment declined in July, fueling speculation that the BoE will delay raising interest rates. Nevertheless, the unfolding debt saga in the U.S and the Euro Zone has supported the Pound as an alternative to both countries' currencies. Overall, the GBP/USD traded with a low of 1.6260 and a high of 1.6469 before closing the day at 1.6417 in the New York session.

Canadian Dollar

The Canadian Dollar ended the day lower against the Greenback. The proximity of the U.S. and Canada is perhaps the country’s biggest problem. In the month of May, the Canadian economy contracted by 0.3 percent, which was the weakest in 2 years. For the Bank of Canada, these latest numbers will encourage them to keep monetary policy comfortably on hold. Overall, USD/CAD traded with a low of 0.9484 and a high of 0.9588 before closing the day at 0.9551 in the New York session.

Australian Dollar

The Australian Dollar traded lower against the Greenback. This week will be a busy one for Australia. The Reserve Bank of Australia will be the first central bank to meet this week and like the others, rates are expected to remain unchanged. Overall, the AUD/USD traded with a low of 1.0910 and a high of 1.1015 before closing the day at 1.0984 in the New York session.

Euro-Yen

EUR/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is issuing a bearish stance. The RSI is above 40 and lies below the neutral zone. Overall, the cross has lost 0.62%.

Sterling-Yen

Currently GBP/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing bullish and MACD is also indicating a bullish stance. The RSI is above 45 reading and lies below the neutral zone. The pair has lost 0.62%.

Aussie-Yen

Currently, the cross is trading below 14, 50 and 100 days moving average. Fast stochastic gives bullish and MACD is also indicating a bullish stance. The RSI is above 51 reading and lies above the neutral region. The pair has lost 1.07%.

Euro-Sterling

This cross is trading above below 14, 50 and 100 days moving average. Fast stochastic is indicating a bearish and MACD is also issuing a bearish signal. The RSI is above 39 reading and lies below the neutral region. The pair has lost 0.01%.

Sterling-Swiss

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is also indicating a bearish tone. The RSI is above 36 and lies below the neutral region. The pair has lost 1.45%.

Appendix

Daily Pivot Points
			Trading Range
Contract	S3	S2	S1	Pivot	R1	R2	R3
EUR/USD	1.4076	1.4152	1.4260	1.4336	1.4444	1.4520	1.4628
USD/JPY	75.64	76.26	76.61	77.23	77.58	78.20	78.55
GBP/USD	1.6086	1.6173	1.6295	1.6382	1.6504	1.6591	1.6713
USD/CHF	0.7626	0.7739	0.7805	0.7918	0.7984	0.8097	0.8163
USD/CAD	0.9390	0.9437	0.9494	0.9541	0.9598	0.9645	0.9702
EUR/JPY	108.95	109.66	110.12	110.83	111.29	112.00	112.46
GBP/JPY	124.52	125.30	125.82	126.60	127.12	127.90	128.42
CHF/JPY	95.43	96.05	96.90	97.52	98.37	98.99	99.84
AUD/JPY	82.58	83.40	83.96	84.78	85.34	86.16	86.72
EUR/GBP	0.8678	0.8705	0.8728	0.8755	0.8778	0.8805	0.8828
EUR/CHF	1.1047	1.1171	1.1241	1.1365	1.1435	1.1559	1.1629
GBP/CHF	1.2607	1.2751	1.2837	1.2981	1.3067	1.3211	1.3297

Sources: News, Charts & Quotes (Courtesy: Reuters, US Department Of Treasury)

Forex Market Bulletin, July 29, 2011

noreply@blogger.com (Daily Forex Market News and Bullteins) — Fri, 29 Jul 2011 08:32:00 +0000

Pulse of the Market

· Greenback wandering prior to key budget votes and first quarter GDP release

· Single Currency stumbled after sentiment data unpleasant and Italian auction struggles

· British Pound captivating signals further from risk trends than economic data

· Japanese Yen slides after employment, spending and production data disheartened

The U.S Dollar ended yesterday’s trading session on a mixed note. Based upon the price action in the foreign market, in the view of market players everyone who wants to sell U.S Dollars prior to the debt ceiling votes has already been done. Jobless claims fell to 398k from an upwardly revised 422k the previous week which is extremely promising for the labor market. Pending home sales beat expectations, rising 2.4 percent in the month of June but the housing market in general remains weak. Second quarter GDP numbers are scheduled for release today along with the Chicago PMI report and the final University of Michigan Consumer Sentiment survey for the month of July. Second quarter growth is expected to slow from an annualized pace of 1.9 to 1.8 percent. Consumer spending and trade activity weakened between April and June which confirms that growth of the economy lost momentum in the second quarter. As for manufacturing activity in the Chicago region, a rebound is expected given the improvements seen in New York, Philadelphia and Dallas. The Euro lost value against the U.S Dollar for the second day in a row. Amongst the high beta currencies, the EUR/USD has performed the worst in the past two trading sessions. The Euro slipped approximately 200 pips in 2 days. Weaker economic data out of Euro Zone and rising CDS spreads has spelled big trouble for the Single Currency. The number of people filing for unemployment claims in Germany declined less than expected, although it’s considered that the 11k drop still very good, the Euro came under heavy selling after the confidence numbers showed a sharp deterioration in sentiment. The Swiss Franc rose to another record high against the U.S Dollar before rebounding. USD/CHF held near its lows for the past 3 trading days and the outcome of the debt ceiling discussions in the U.S will determine whether this is a pause or bottom. The British Pound held steady against the U.S Dollar but strengthened against the Euro despite weaker economic data. The fact that investors completely ignored the soft CBI Distributive Trades survey shows that economic data is not their top priority. Both the Euro Zone and the U.S are up to their neck in sovereign debt concerns and in that light, Pound has benefitted. The Japanese Yen strengthened across the board yesterday. With the U.S debt crisis dominating the headlines, the Yen is still being looked at as safe haven currency.

Time(GMT)	Economic Release	IMP	Actual	Forecast	Prior
05:00	Japan Annualized Housing Starts (JUN)	Medium		0.809M	0.815M
06:00	German Retail Sales (MoM) (JUN)	Low		1.7%	-2.8%
08:30	U.K Mortgage Approvals (JUN)	Medium		46.0K	45.9K
12:30	U.S Gross Domestic Product (Annualized) (2Q)	High		1.8%	1.9%
12:30	Canada Gross Domestic Product (MoM) (MAY)	Medium		0.1%	0.0%
13:45	U.S Chicago Purchasing Manager (JUL)	Medium		60.0	61.1
13:55	U.S U. of Michigan Confidence (JUL)	Medium		64.0	63.8

Euro

The Single Currency traded lower against the U.S Dollar. Concerns about the EU debt crisis continue to remain close to the surface with apprehension yesterday after weak Italy bonds. German Unemployment fell 11k in July against -13k previously. The EUR/USD found support under 1.4300. Overall, the EUR/USD traded with a low of 1.4253 and a high of 1.4400 before closing the day around 1.4329 in the New York session.

Yen

The Japanese Yen failed to regain 78.00 Yen in yesterday’s trading session even with some moderate U.S Dollar strength and ended near lows with crosses dragging the major lower. EUR/JPY tracked towards 110.00 the low from the recent Greece crisis. Overall, the USD/JPY traded with a low of 77.61 and a high of 78.01 before closing the day around 77.64 in the New York session.

British Pound

The British Pound outperformed most against the other risk currencies in yesterday’s trading session finding support under 1.6300 and EUR/GBP falling to 0.8750. CBI Realized Sales at -5 vs. 0 forecast UK economy struggling to gain traction. Overall, the GBP/USD traded with a low of 1.6293 and a high of 1.6382 before closing the day at 1.6372 in the New York session.

Canadian Dollar

The Canadian Dollar edged lower against the U.S Dollar, trading in a tight range as investors awaited a crucial vote in the United States on a bill to cut the deficit. The Loonie had strengthened earlier in the day but sold off slightly as a vote loomed in the U.S where lawmakers are working to compromise on a deficit reduction plan. Overall, USD/CAD traded with a low of 0.9456 and a high of 0.9521 before closing the day at 0.9491 in the New York session.

Australian Dollar

The Australian Dollar failed to maintain strength as the risk aversion overwhelmed and pushed the Aussie back from fresh record highs to test 1.1000. The Australian Dollar was also pressured as investors waited to see whether U.S lawmakers will be able to agree on a plan to raise the country’s borrowing limit and avoid a catastrophic default. Overall, the AUD/USD traded with a low of 1.0975 and a high of 1.1074 before closing the day at 1.1004 in the New York session.

Euro-Yen

EUR/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is issuing a bearish stance. The RSI is above 36 and lies below the neutral zone. Overall, the cross has lost 0.66%.

Sterling-Yen

Currently GBP/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing bullish and MACD is also indicating a bullish stance. The RSI is above 39 reading and lies below the neutral zone. The pair has lost 0.15%.

Aussie-Yen

Currently, the cross is trading above 14 and below 50, 100 days moving average. Fast stochastic gives bullish and MACD is also indicating a bullish stance. The RSI is above 48 reading and lies below the neutral region. The pair has lost 0.57%.

Euro-Sterling

This cross is trading above below 14, 50 and 100 days moving average. Fast stochastic is indicating a bullish and MACD is issuing a bearish signal. The RSI is above 42 reading and lies below the neutral region. The pair has lost 0.51%.

Sterling-Swiss

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is indicating a bullish tone. The RSI is above 35 and lies below the neutral region. The pair has gained 0.18%.

Appendix

Daily Pivot Points
			Trading Range
Contract	S3	S2	S1	Pivot	R1	R2	R3
EUR/USD	1.4108	1.4180	1.4255	1.4327	1.4402	1.4474	1.4549
USD/JPY	77.10	77.35	77.50	77.75	77.90	78.15	78.30
GBP/USD	1.6227	1.6260	1.6316	1.6349	1.6405	1.6438	1.6494
USD/CHF	0.7926	0.7958	0.7982	0.8014	0.8038	0.8070	0.8094
USD/CAD	0.9393	0.9424	0.9458	0.9489	0.9523	0.9554	0.9588
EUR/JPY	109.42	110.12	110.69	111.39	111.96	112.66	113.23
GBP/JPY	126.06	126.37	126.76	127.07	127.46	127.77	128.16
CHF/JPY	96.08	96.40	96.67	96.99	97.26	97.58	97.85
AUD/JPY	84.33	84.81	85.13	85.61	85.93	86.41	86.73
EUR/GBP	0.8655	0.8695	0.8723	0.8763	0.8791	0.8831	0.8859
EUR/CHF	1.1307	1.1364	1.1420	1.1477	1.1533	1.1590	1.1646
GBP/CHF	1.2946	1.2992	1.3052	1.3098	1.3158	1.3204	1.3264

Sources: News, Charts & Quotes (Courtesy: Reuters, US Department Of Treasury)

Forex Market Bulletin, July 28, 2011

noreply@blogger.com (Daily Forex Market News and Bullteins) — Thu, 28 Jul 2011 12:18:00 +0000

Pulse of the Market

· Greenback rallied and S&P 500 tumbled hit by immediate fundamental headwinds

· Euro stumbled after another Greece downgrade and Schaeuble casts doubt on EFSF

· British Pound investors ignore BoE’s miles and troubled CBI factory economic data

· Australian Dollar sustained its upbeat prejudice in spite of risk aversion

The U.S Dollar ended yesterday’s trading session higher against the basket of major currencies. Lawmakers defended their proposals and actions throughout the day, but their efforts have yielded little in terms of cooperation. Discussions in the markets yesterday centered on the question What if the U.S government defaulted on its debt? And what if the U.S credit rating was downgraded? A default would be 10 times worse than a downgrade but also far less likely. In the opinion, a debt deal will be reached by August 2nd because the consequences of not doing so would just be far too severe and when the announcement is made, the Greenback will rally. Fiscal and monetary policies in the U.S do not support the Dollar and the only reason why the U.S Dollar has rallied at all is because of its safe haven status. According to the Beige Book report, 8 out of the 12 Fed districts saw slower growth with the remaining 4 continuing to grow modestly. Durable goods orders also fell 2.1 percent in the month of June, which was much worse than the market had anticipated. The Euro weakened across the board as the Dow plunged nearly 200 points. Although the foreign exchange market will continue to take its cue from U.S. debt developments, Europe is not without its own problems. Earlier yesterday Standard & Poor’s downgraded Greece’s debt rating from CCC to CC with a negative outlook, adding that they expect bondholders to recover only 30 to 50 percent of their principal. Given the exposure of European banks to U.S debt, what is bad for the U.S will be bad for Europe. However with that in mind, a downgrade or default in the U.S should still be initially Dollar bearish and Euro positive. The latest economic reports show consumer prices rising in the month of July which suggests that rate hikes could still be on the minds of central bankers. The British Pound strengthened against the Euro but weakened against the Dollar. As mixed sentiments pervaded the market, investors sold off high beta currencies driving GBP/USD lower from its one month high. The Japanese Yen strengthened against all the major currencies with the exception of the Australian Dollar.

Time(GMT)	Economic Release	IMP	Actual	Forecast	Prior
07:55	German Unemployment Change (JUL)	High		-15K	-8K
09:00	Euro Zone Consumer Confidence (JUL)	Medium		-11.4	-11.4
10:00	U.K CBI Reported Sales (JUL)	Medium		2	-2
12:30	U.S Initial Jobless Claims (JUL 22)	Low		415K	418K
14:00	U.S Pending Home Sales (MoM) (JUN)	Low		-2.0%	8.2%
23:01	U.K GfK Consumer Confidence Survey (JUL)	Medium		-26	-25
23:15	Japan Nomura/JMMA Manufacturing Purchasing Manager Index (JUL)	Medium			50.7
23:30	Japan Jobless Rate (JUN)	Medium		4.6%	4.5%
23:30	Japan Household Spending (YoY) (JUN)	Medium		-2.3%	-1.9%

Euro

The Single Currency pulled back sharply in yesterday’s trading session with Cyprus and Greece downgraded and comments from the German Fin min that the debt crisis is not over. German CPI climbed 0.5% m/m but is not expected to remain at the elevated levels. Overall, the EUR/USD traded with a low of 1.4338 and a high of 1.4535 before closing the day around 1.4365 in the New York session.

Yen

The Japanese Yen grinded lower for most of the yesterday’s trading session until the U.S Dollar found some bids and rebounded above 78.00 Yen. AUD/JPY was well supported on the strong inflation data whilst the EUR/JPY was the weakest cross falling under 112.00 Yen on risk aversion. Overall, the USD/JPY traded with a low of 77.56 and a high of 78.15 before closing the day around 77.96 in the New York session.

British Pound

The British Pound fell back to the lower 1.6300 region with market wide U.S Dollar strength and heavy GBP/JPY selling pushing Cable lower. EUR/GBP fell below 0.8800 but is still inside the recent range. July CBI Industrial trends showed a sharp slowdown to -10 against -2 previously. Overall, the GBP/USD traded with a low of 1.6311 and a high of 1.6438 before closing the day at 1.6330 in the New York session.

Canadian Dollar

The Canadian Dollar declined as oil and other commodities fell after orders for U.S durable goods declined in June, sparking concern about the strength of the recovery in the world's largest economy. The Loonie advanced earlier to almost the highest level since November 2007. Overall, USD/CAD traded with a low of 0.9408 and a high of 0.9504 before closing the day at 0.9495 in the New York session.

Australian Dollar

The Australian Dollar was the strongest currency in the market breaking to fresh all time highs on the back of strong Q2 CPI figures at 0.9% vs. 0.7% forecast. The market is bullish because the strong CPI numbers may lead to the RBA raising interest rates further this year. Overall, the AUD/USD traded with a low of 1.0935 and a high of 1.1079 before closing the day at 1.1022 in the New York session.

Euro-Yen

EUR/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is also issuing a bullish stance. The RSI is above 38 and lies below the neutral zone. Overall, the cross has lost 0.86%.

Sterling-Yen

Currently GBP/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing bullish and MACD is also indicating a bullish stance. The RSI is above 40 reading and lies below the neutral zone. The pair has lost 0.31%.

Aussie-Yen

Currently, the cross is trading above 14, 50 and 100 days moving average. Fast stochastic gives bullish and MACD is also indicating a bullish stance. The RSI is above 54 reading and lies above the neutral region. The pair has gained 0.75%.

Euro-Sterling

This cross is trading above below 14, 50 and 100 days moving average. Fast stochastic is indicating a bullish and MACD is issuing a bearish signal. The RSI is above 43 reading and lies below the neutral region. The pair has lost 0.53%.

Sterling-Swiss

This cross is trading above below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is indicating a bullish tone. The RSI is above 35 and lies below the neutral region. The pair has lost 0.40%.

Appendix

Daily Pivot Points
			Trading Range
Contract	S3	S2	S1	Pivot	R1	R2	R3
EUR/USD	1.4093	1.4216	1.4290	1.4413	1.4487	1.4610	1.4684
USD/JPY	77.04	77.30	77.63	77.89	78.22	78.48	78.81
GBP/USD	1.6154	1.6233	1.6281	1.6360	1.6408	1.6487	1.6535
USD/CHF	0.7940	0.7968	0.7990	0.8018	0.8040	0.8068	0.8090
USD/CAD	0.9338	0.9373	0.9434	0.9469	0.9530	0.9565	0.9626
EUR/JPY	110.26	111.09	111.55	112.38	112.84	113.67	114.13
GBP/JPY	125.97	126.56	126.94	127.53	127.91	128.50	128.88
CHF/JPY	96.38	96.60	96.93	97.15	97.48	97.70	98.03
AUD/JPY	84.38	84.76	85.35	85.73	86.32	86.70	87.29
EUR/GBP	0.8688	0.8729	0.8763	0.8804	0.8838	0.8879	0.8913
EUR/CHF	1.1314	1.1406	1.1460	1.1552	1.1606	1.1698	1.1752
GBP/CHF	1.2932	1.3001	1.3045	1.3114	1.3158	1.3227	1.3271

Sources:News, Charts & Quotes (Courtesy: Reuters, US Department Of Treasury)

Forex Market Bulletin, July 27, 2011

noreply@blogger.com (Daily Forex Market News and Bullteins) — Wed, 27 Jul 2011 09:40:00 +0000

Pulse of the Market

· Greenback suffered from mixed signals on economic data and budget debate

· Single Currency ignores ECB Noyer’s hawkish annotations and poor bond auctions

· U.K’s 2Q GDP expectations were not fully accounted for in the consensus forecast

· Australian Dollar rush forward to post float highs on strong CPI figures

The U.S Dollar dropped to its lowest level ever against the New Zealand Dollar and Swiss Franc while also slipping to a 3 year low against the Canadian Dollar and a 1 month low against the British Pound. Another day has passed without any progress on the U.S debt ceiling talks and this standoff has led to a great loss of confidence in the U.S government, the U.S economy and the U.S Dollar. The mighty Dollar is losing its luster very quickly with investors bailing out of Greenbacks left and right. The Greenback traded at extreme levels against all of the major currencies with the exception of the Euro and British Pound. Yesterday's U.S economic reports left a lot to be desired. S&P reported an increase in house prices but the rise was marginal. New home sales declined by 1.0 percent which was worse than the economists had expected but this was tempered by an upward revision to the May report. The Euro traded higher against the U.S Dollar following trouble in Washington which has driven the Euro above 1.4500. There was little news out of Europe which is good news for the Euro. German consumer confidence deteriorated slightly but confidence in France improved. Comments from European Central Bank officials were mixed with ECB member Bini-Smaghi saying the Euro Zone economy is not recovering very strongly which is why the ECB is not committed to any specific rate path. The Swiss Franc on the other hand continues to perform extremely well regardless of a decline in the UBS Consumption indicator from 1.88 to 1.48. Since the beginning of the year the Franc has been the best performing currency, rising against all of the majors. The British Pound strengthened against the Greenback but weakened against the Euro. The Cable rose to a six-week high against the U.S Dollar after economic reports showed growth that matched expectations and U.S lawmakers failed to agree on a debt plan, boosting the relative appeal of British assets. The GDP report showed U.K economic output rising 0.2 percent in second quarter which prompted a relief rally. The Japanese Yen weakened against all the major currencies with the exception of the U.S Dollar. There was a crazy spike in yesterday’s trading that sent USD/JPY soaring 70 pips range in less than 5 minutes. However, this price rise was not caused by BOJ intervention but rather by explosions in China which highlights the Yen’s sensitivity to all things.

Time(GMT)	Economic Release	IMP	Actual	Forecast	Prior
	German Consumer Price Index (MoM) (JUL)	Medium		0.3%	0.1%
01:30	Australia Consumer Prices Index (QoQ) (2Q)	Medium	0.9%	0.7%	1.6%
09:30	Switzerland KOF Swiss Leading Indicator (JUL)	Medium		2.11	2.23
12:30	U.S Durable Goods Orders (JUN)	High		0.3%	2.1%
14:30	DOE U.S. Crude Oil Inventories (JUL 22)	Low		-2000K	-3727K
18:00	U.S Fed's Beige Book	Medium
23:50	Japan Large Retailers' Sales (JUN)	Medium		-0.4%	-2.5%

Euro

The Single Currency was the main gainer from the U.S Debt issue and closed above 1.4500 in a strong technical break higher yesterday. Stock markets are under pressure but the usual safe haven demand for the U.S Dollar is not there with Swiss Franc and Japanese Yen in demand instead. Overall, the EUR/USD traded with a low of 1.4356 and a high of 1.4524 before closing the day around 1.4509 in the New York session.

Yen

The Japanese Yen was volatile in yesterday’s trading session testing support under 78.00 Yen before surging on intervention rumors to 78.70 in 15 minutes. The gains were reversed almost as fast and fresh lows were seen in the U.S session as Dollar weakness dominated. Overall, the USD/JPY traded with a low of 77.82 and a high of 78.69 before closing the day around 77.86 in the New York session.

British Pound

The British Pound was one of the strongest currencies in the market yesterday with the second quarter GDP impressing with the 0.2% in line with expectations but a note from the statistics agency saying without Japan/Royal Wedding the number would have been closer to 0.7%. Overall, the GBP/USD traded with a low of 1.6264 and a high of 1.6427 before closing the day at 1.6402 in the New York session.

Canadian Dollar

The Canadian Dollar jumped to its highest point since 2007 on Tuesday, becoming a safe haven for investors as the U.S. greenback faltered and the political impasse in Washington over raising the country’s debt ceiling continued. Canada’s economic health is one reason why the Loonie is attractive to those seeking a safe investment. Overall, USD/CAD traded with a low of 0.9404 and a high of 0.9473 before closing the day at 0.9436 in the New York session.

Australian Dollar

The Australian Dollar tracked the Euro higher able to ignore the falls in the stock markets with U.S Dollar weakness the main story. RBA Governor Steven's speech helped lift as well with positive comments on the economic outlook ahead of today all important CPI numbers. Overall, the AUD/USD traded with a low of 1.0820 and a high of 1.0968 before closing the day at 1.0954 in the New York session.

Euro-Yen

EUR/JPY is trading above 14 and below 50, 100 days moving average. Fast stochastic is giving a bullish tone and MACD is also issuing a bullish stance. The RSI is above 44 and lies below the neutral zone. Overall, the cross has gained 0.41%.

Sterling-Yen

Currently GBP/JPY is trading above 14 and below 50, 100 days moving average. Fast stochastic is issuing bullish and MACD is also indicating a bullish stance. The RSI is above 44 reading and lies below the neutral zone. The pair has gained 0.27%.

Aussie-Yen

Currently, the cross is trading above 14 and below 50, 100 days moving average. Fast stochastic gives bullish and MACD is also indicating a bullish stance. The RSI is above 54 reading and lies above the neutral region. The pair has gained 0.51%.

Euro-Sterling

This cross is trading above 14, 50 and 100 days moving average. Fast stochastic is indicating a bullish and MACD is issuing a bearish signal. The RSI is above 47 reading and lies below the neutral region. The pair has gained 0.14%.

Sterling-Swiss

This cross is trading above below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is indicating a bullish tone. The RSI is above 39 and lies below the neutral region. The pair has gained 0.19%.

Appendix

Daily Pivot Points
			Trading Range
Contract	S3	S2	S1	Pivot	R1	R2	R3
EUR/USD	1.4234	1.4295	1.4402	1.4463	1.4570	1.4631	1.4738
USD/JPY	76.69	77.25	77.56	78.12	78.43	78.99	79.30
GBP/USD	1.6139	1.6201	1.6302	1.6364	1.6465	1.6527	1.6628
USD/CHF	0.7911	0.7954	0.7982	0.8025	0.8053	0.8096	0.8124
USD/CAD	0.9333	0.9369	0.9402	0.9438	0.9471	0.9507	0.9540
EUR/JPY	111.00	111.62	112.30	112.92	113.60	114.22	114.90
GBP/JPY	125.75	126.39	127.06	127.70	128.37	129.01	129.68
CHF/JPY	95.88	96.43	96.81	97.36	97.74	98.29	98.67
AUD/JPY	83.61	84.06	84.68	85.13	85.75	86.20	86.82
EUR/GBP	0.8746	0.8781	0.8812	0.8847	0.8878	0.8913	0.8944
EUR/CHF	1.1432	1.1485	1.1554	1.1607	1.1676	1.1729	1.1798
GBP/CHF	1.2955	1.3009	1.3075	1.3129	1.3195	1.3249	1.3315

Sources: News, Charts & Quotes (Courtesy: Reuters, US Department Of Treasury)

Forex Market Bulletin, July 26, 2011

noreply@blogger.com (Daily Forex Market News and Bullteins) — Tue, 26 Jul 2011 13:04:00 +0000

Pulse of the Market

· S&P restated it may cut the U.S debt rating if a deal doesn’t address the U.S long term debt burden

· Single Currency investors demonstrated modest interest in another Greek downgrade

· British Pound gearing up for the foremost major market mover in weeks

· Australian Dollar meditate on risk appetite inclination against rate outlook

The Greenback ended yesterday’s trading session on a mixed note. Lawmakers in Washington are working hard to reach a deal to raise the debt ceiling but the talks have hit with Republicans and Democrats continuing to bump heads. The persistent weakness of the U.S Dollar suggests that investors are bracing for the worst by reducing their overall exposure to Greenbacks. The U.S Dollar has fallen to an all time low against the Swiss Franc and Japanese Yen. Even though it is believed that U.S government is engaging in an open dialogue with rating agencies every step of the way, it is becoming clearer that the U.S may not be able to avoid a downgrade. A default could be avoided but unless Congress passes a $4 trillion deficit reduction plan by August 2nd, every other alternative could prompt a reaction by rating agencies. In 1979, the government was unable to make its payments on some Treasury bills. In other words, the U.S Treasury defaulted back in 1979 and the conditions then were very similar to the conditions now. The Euro ended the session almost unchanged considering the fact that Moody’s became the second rating agency to downgrade Greek debt from Ca to Caa1. European policymakers have managed expectations well and their warning that a temporary default would occur prepared investors properly. However the main reason why the EUR/USD firmed is because the currency is benefitting from U.S debt concerns. The August 2nd deadline is quickly approaching and no deal is on the table. The biggest beneficiaries of this uncertainty are the Swiss Franc and the Japanese Yen. Risk aversion and anti-Dollar sentiment propelled the Franc and the Yen sharply higher as investors look at these two currencies as the last remaining safe havens. The British Pound weakened against both the U.S Dollar and the Euro as economic data from the U.K caused investors to push rate hike expectations out even further. U.K mortgage approvals rose “slightly” in June the British Bankers’ Association said. U.K house prices fell 0.1 percent in July as the downward trend continues. The key focus is on today’s advance second quarter GDP release. The Japanese Yen strengthened against all the major currencies as risk aversion came back to the market. The Yen usually benefits when investors shift out of riskier assets including stocks and emerging markets, especially the Greenback as the debt ceiling battle continues.

Time(GMT)	Economic Release	IMP	Actual	Forecast	Prior
00:00	Australia Conference Board Leading Index (MAY)	Medium			0.1%
04:00	U.K Nationwide House Prices s.a. (MoM) (JUL)	Low		-0.2%	0.0%
06:00	Switzerland UBS Consumption Indicator (JUN)	Medium			1.91
06:00	German GfK Consumer Confidence Survey (AUG)	Medium		5.6	5.7
08:30	U.K Gross Domestic Product (YoY) (2Q)	High		0.8%	1.6%
13:00	U.S S&P/Case-Shiller Home Price Index (MAY)	Low			138.84
14:00	U.S Consumer Confidence (JUL)	High		57.9	58.5

Euro

The Single Currency was well supported in yesterday’s trading session even with stocks down as the market is wary of buying the U.S Dollar while the debt debate rages on in Washington. Moody's downgraded Greece once again and warned of investor losses from the EU rescue plan. Overall, the EUR/USD traded with a low of 1.4324 and a high of 1.4405 before closing the day around 1.4376 in the New York session.

Yen

The Japanese Yen remained favored and the USD/JPY remained pressured testing 78.00 Yen but holding and closing slightly higher off the level. AUD/JPY and EUR/JPY are struggling while the USD/JPY remains under pressure but stock markets will direct the majority of the movement. Overall, the USD/JPY traded with a low of 78.04 and a high of 78.54 before closing the day around 78.26 in the New York session.

British Pound

The British Pound continued to pivot the 1.6300 level while the investors pushed pause waiting for Greece and U.S debt clarification. EUR/GBP grinded higher after testing 0.8800 and is well supported on the strong EUR/USD movements of late. Overall, the GBP/USD traded with a low of 1.6261 and a high of 1.6327 before closing the day at 1.6275 in the New York session.

Canadian Dollar

The Canadian Dollar finished stronger against its U.S counterpart in yesterday’s trading session, within sight of last week's 3-1/2 year high, as a stalemate in U.S debt talks boosted Canada's flight to safety status. The Canadian currency capped a second straight weekly gain on July 22 on speculation the nation’s central bank will raise interest rates at least once this year. Overall, USD/CAD traded with a low of 0.9433 and a high of 0.9523 before closing the day at 0.9466 in the New York session.

Australian Dollar

The Australian Dollar was under pressure due to weakness in stocks but tracked Gold and Euro higher in the U.S session on the broad U.S weakness. Second quarter PPI was strong as expected at 0.8% Q/Q. Tomorrow’s CPI numbers will be very important to the central banks interest rate decision. Overall, the AUD/USD traded with a low of 1.0794 and a high of 1.0876 before closing the day at 1.0843 in the New York session.

Euro-Yen

EUR/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is also issuing a bullish stance. The RSI is above 45 and lies below the neutral zone. Overall, the cross has lost 0.12%.

Sterling-Yen

Currently GBP/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing bullish and MACD is also indicating a bullish stance. The RSI is above 42 reading and lies below the neutral zone. The pair has lost 0.34%.

Aussie-Yen

Currently, the cross is trading below 14, 50 and 100 days moving average. Fast stochastic gives bullish and MACD is indicating a bearish stance. The RSI is above 49 reading and lies below the neutral region. The pair has lost 0.25%.

Euro-Sterling

This cross is trading above 14, 100 and below 50 days moving average. Fast stochastic is indicating a bullish and MACD is issuing a bearish signal. The RSI is above 51 reading and lies above the neutral region. The pair has gained 0.23%.

Sterling-Swiss

Appendix

Daily Pivot Points
			Trading Range
Contract	S3	S2	S1	Pivot	R1	R2	R3
EUR/USD	1.4251	1.4287	1.4332	1.4368	1.4413	1.4449	1.4494
USD/JPY	77.52	77.78	78.02	78.28	78.52	78.78	79.02
GBP/USD	1.6182	1.6222	1.6248	1.6288	1.6314	1.6354	1.6380
USD/CHF	0.7864	0.7942	0.7999	0.8077	0.8134	0.8212	0.8269
USD/CAD	0.9335	0.9384	0.9425	0.9474	0.9515	0.9564	0.9605
EUR/JPY	111.03	111.52	112.02	112.51	113.01	113.50	114.00
GBP/JPY	126.03	126.56	126.97	127.50	127.91	128.44	128.85
CHF/JPY	95.01	95.57	96.33	96.89	97.65	98.21	98.97
AUD/JPY	83.69	84.05	84.46	84.82	85.23	85.59	86.00
EUR/GBP	0.8758	0.8777	0.8804	0.8823	0.8850	0.8869	0.8896
EUR/CHF	1.1298	1.1408	1.1495	1.1605	1.1692	1.1802	1.1889
GBP/CHF	1.2790	1.2923	1.3019	1.3152	1.3248	1.3381	1.3477

Sources: News, Charts & Quotes (Courtesy: Reuters, US Department Of Treasury)

Forex Market Bulletin, July 25, 2011

noreply@blogger.com (Daily Forex Market News and Bullteins) — Mon, 25 Jul 2011 08:04:00 +0000

Pulse of the Market

· Greenback unpredictability assured, course lacking until debit discuss determined

· Single Currency come across no impetus in EU’s enormous crisis resolution effort

· British Pound may finally take control over its own activity or at least temporarily

· Australian Dollar wavered on rate expectations as CPI readings come within reach

The Greenback ended Friday’s trading session higher against the basket of major currencies. If lawmakers in Washington do not get their act together and do something big or small, the U.S government will officially run out of money on Tuesday August 2nd. If the Senate fails to raise the debt ceiling either temporarily or permanently, panic selling of U.S Dollars could drive the Greenback to fresh lows against all of the major currencies. For the time being, a downgrade or default remains a realistic risk for the U.S economy. This week’s economic reports include second quarter GDP but regardless of the importance of this data and other releases, the focus will remain on the U.S debt talks. If the U.S government manages to raise the debt ceiling and pass a deficit reduction plan by August 2nd, the U.S Dollar should rally. If the debt ceiling is not raised by August 2nd, the U.S government would effectively run out of money and rating agencies would be forced to strip the U.S of its prized AAA rating. The Euro traded lower against the U.S Dollar. Based on the price action Thursday, investors reacted very well to the European Union’s second bailout plan for Greece. However weaker economic data, profit taking and a rating agency action prevented the currency pair from extending its gains on Friday. Fitch became the first rating agency to assign a restricted default rating to Greece which almost immediately stripped the Euro of its earlier gains. Fitch added that it could raise the country’s debt rating back up to junk levels if Greece manages to issue new replacement bonds which could take only days. Downgrades in general will sour the mood in the Euro and the prospect of more rating actions explains why the EUR/USD has weakened on Friday. The British Pound traded higher against the Euro while lower against the U.S Dollar. Although the currency has strengthened in recent days, its domestic economy has been hitting a soft patch. With second quarter GDP scheduled for release tomorrow, there have been many discouraging signs for the recovery. The Japanese Yen strengthened against all the major currencies with the exception of the Australian and New Zealand Dollars as the market oscillated between high and low risk appetites. No economic data was released on Friday causing the markets to take their cue from the Euro Zone and U.S debt news flows. The Canadian Dollar weakened against the Greenback while the Australian and New Zealand Dollars continued to trade higher. Friday’s economic reports from Canada were mixed.

Time(GMT)	Economic Release	IMP	Actual	Forecast	Prior
01:30	Australia Producer Price Index QoQ (2Q)	Medium	0.8%	0.8%	1.2%
08:30	U.K BBA Loans for House Purchase (JUN)	Medium		31000	30509
12:30	U.S Chicago Fed Nat Activity Index (JUN)	Medium		-0.40	-0.37
14:30	U.S Dallas Fed Manufacturing Activity (JUL)	Medium		-7.2	-17.5
23:50	Japan Corporate Service Price (YoY) (JUN)	Low		-0.9%	-0.9%

Euro

The Single Currency broke below 1.4400 but found support and finished close to the figure even as rating agencies looked over the Greece debt deal to decide whether it was a default or not. German IFO fell back to 112.9 vs. 114.5 previously on global growth concerns. Overall, the EUR/USD traded with a low of 1.4323 and a high of 1.4437 before closing the day around 1.4363 in the New York session.

Yen

The Japanese Yen remained under pressure with the Yen and Franc the preferred safe havens in light of the U.S debt worries. Earlier today the USD/JPY traded new lows on news over the weekend that no debt deal had been agreed. These levels are bringing daily comments from BOJ and MOF officials concerns about the strength of the Yen. Overall, the USD/JPY traded with a low of 78.21 and a high of 78.71 before closing the day around 78.43 in the New York session.

British Pound

The British Pound was very quiet in Friday’s trading session pivoting the 1.6300 level consolidating the rally on Thursday. EUR/GBP fell back to test 0.8800 but is grinding higher on the post Greece deal enthusiasm for the Single Currency. Overall, the GBP/USD traded with a low of 1.6263 and a high of 1.6333 before closing the day at 1.6297 in the New York session.

Canadian Dollar

The Canadian Dollar closed lower against its U.S counterpart Friday as investors took in data showing a slower pace of price inflation, which tamped down the urgency to raise interest rates. Statistics Canada said the annual inflation rate was 3.1 percent in June, sliding from 3.7 percent in May. Overall, USD/CAD traded with a low of 0.9421 and a high of 0.9491 before closing the day at 0.9431 in the New York session.

Australian Dollar

The Australian Dollar dealt mixed in Friday’s trading session testing higher in Europe but falling back to opening levels as U.S stocks fell into the close on debt ceiling concerns. Crosses are more interesting with AUD/NZD and AUD/JPY providing plenty of movement. Overall, the AUD/USD traded with a low of 1.0819 and a high of 1.0873 before closing the day at 1.0847 in the New York session.

Euro-Yen

EUR/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is issuing a bearish stance. The RSI is above 42 and lies below the neutral zone. Overall, the cross has lost 0.23%.

Sterling-Yen

Currently GBP/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing bullish and MACD is also indicating a bullish stance. The RSI is above 43 reading and lies below the neutral zone. The pair has lost 0.02%.

Aussie-Yen

Currently, the cross is trading below 14, 50 and 100 days moving average. Fast stochastic gives bullish and MACD is indicating a bearish stance. The RSI is above 46 reading and lies below the neutral region. The pair has gained 0.25%.

Euro-Sterling

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is indicating a bullish and MACD is issuing a bearish signal. The RSI is above 47 reading and lies below the neutral region. The pair has lost 0.23%.

Sterling-Swiss

This cross is trading above 14 and below 50, 100 days moving average. Fast stochastic is issuing a bullish stance and MACD is also indicating a bullish tone. The RSI is above 40 and lies below the neutral region. The pair has gained 0.16%.

Appendix

Daily Pivot Points
			Trading Range
Contract	S3	S2	S1	Pivot	R1	R2	R3
EUR/USD	1.4198	1.4260	1.4312	1.4374	1.4426	1.4488	1.4540
USD/JPY	77.69	77.95	78.19	78.45	78.69	78.95	79.19
GBP/USD	1.6192	1.6228	1.6262	1.6298	1.6332	1.6368	1.6402
USD/CHF	0.8024	0.8082	0.8130	0.8188	0.8236	0.8294	0.8342
USD/CAD	0.9331	0.9378	0.9434	0.9481	0.9537	0.9584	0.9640
EUR/JPY	110.77	111.51	112.08	112.82	113.39	114.13	114.70
GBP/JPY	126.45	126.95	127.39	127.89	128.33	128.83	129.27
CHF/JPY	94.50	94.93	95.40	95.83	96.30	96.73	97.20
AUD/JPY	84.22	84.50	84.78	85.06	85.34	85.62	85.90
EUR/GBP	0.8730	0.8763	0.8787	0.8820	0.8844	0.8877	0.8901
EUR/CHF	1.1465	1.1578	1.1663	1.1776	1.1861	1.1974	1.2059
GBP/CHF	1.3092	1.3184	1.3256	1.3348	1.3420	1.3512	1.3584

Sources: News, Charts & Quotes (Courtesy: Reuters, US Department Of Treasury)

Forex Market Bulletin, July 22, 2011

noreply@blogger.com (Daily Forex Market News and Bullteins) — Fri, 22 Jul 2011 09:11:00 +0000

Pulse of the Market

· Dollar’s link to the Euro is certainly strong enough that the efforts in EU would have remarkable effect

· Euro presented a wide-ranging bailout curriculum with exceptionally numerous holes

· British Pound took no notice of confidence, sales and financing economic data to watch Euro

· Canadian Dollar financiers prepared for retail sales and CPI data to back rate volatility

The Greenback ended yesterday’s trading session lower against the basket of major currencies. President Obama’s deadline for an agreement has been reached in time for legislation to be drafted and passed. Republicans and Democrats are still so divided that investors are almost certain that the market will be disappointed today. The reality of the matter is that there might not be enough time to cut a deal that would raise the debt ceiling and reduce government spending before the U.S Treasury runs out of money on August 2nd. Investors around the world have begun to seriously consider the possibility of a downgrade which would undoubtedly have severe consequences for the financial markets. The prospect of a downgrade has already driven the U.S Dollar to a fresh record low against the New Zealand Dollar, 3 year low against the Canadian Dollar and 3 month low against the Japanese Yen. The U.S Dollar’s safe haven status curtails directly from the U.S government’s long history of repaying its loans on time and missing one interest payment is all it takes to strip away this label. Yesterday’s U.S economic reports were mixed with jobless claims rising more than expected but leading indicators and the Philly Fed survey improving. The Euro was firm throughout yesterday’s trading session but icing on the cake was the EU’s pledge to start a European Monetary Fund. The EMF would operate on the secondary market and enable states to recapitalize banks directly according to French President Sarkozy. Having a support system regionally is big step in the right direction for the Euro Zone. The IMF provides support on a global level and the EMF would provide support on a regional level. The goal of the EMF would be to provide member nations with support in times of financial difficulty while at the same time avoid instability in the region by imposing sanctions on countries that defy the limits on debt. Overall, Greece will receive aid worth 109B Euros with approximately 37B Euros in private sector aid. The sharp rally in the Euro and decline in European CDS spreads indicate that investors are generally satisfied with the EU's plan. British Pound rose to a one month high against the U.S Dollar, following an improvement in risk appetite combined with stronger economic data. The overwhelming support for Greece will benefit banks in the U.K by helping them avoid significant losses. In terms of economic data, retail sales rebounded in the month of June. After falling 1.3 percent the previous month, consumer spending rose 0.7 percent. The Japanese Yen weakened against all the major currencies with the exception of the U.S and Canadian Dollars as risk appetite returned to the market on news that Greek default may contain the debt crisis.

Time(GMT)	Economic Release	IMP	Actual	Forecast	Prior
08:00	German IFO - Current Assessment (JUL)	Medium		122.3	123.3
08:00	German IFO - Expectations (JUL)	Medium		105.0	106.3
09:00	Euro Zone Industrial New Orders (YoY) (MAY)	Medium		10.1%	9.0%
11:00	Canada Consumer Price Index (MoM) (JUN)	Medium		-0.2%	0.7%
12:30	Canada Retail Sales (MoM) (MAY)	Low		-0.3%	0.3%

Euro

The Single Currency fell to 1.4150 in early European trade before staging a remarkably rally on the Greece plan announcement and trading above 1.4400. EUR/JPY and EUR/GBP both enjoyed good gains in a broad Euro rally. In addition to assisting Greece there is interest rate on loans on Ireland and Portugal lowered to help their ability to repay. Overall, the EUR/USD traded with a low of 1.4138 and a high of 1.4433 before closing the day around 1.4422 in the New York session.

Yen

The Japanese Yen gained against the U.S Dollar but was very weak against the crosses in yesterday’s trading session as stocks markets surged. EUR/JPY rallied above 113.00 Yen and could be poised for further gains after finding support at 110.00 Yen and the EU debt agreement was reached. Overall, the USD/JPY traded with a low of 78.27 and a high of 79.01 before closing the day around 78.28 in the New York session.

British Pound

The British Pound broke out of the range to the topside and surged to 1.6300 before stabilizing ahead of closing of yesterday’s trading session. EUR/GBP climbed back above 0.8800 as the Euro outperformed. June Retail Sales were strong at 0.7% against -1.3% previously. Overall, the GBP/USD traded with a low of 1.6120 and a high of 1.6333 before closing the day at 1.6328 in the New York session.

Canadian Dollar

The Canadian Dollar continued to surge in yesterday’s session after the Bank of Canada issued a hawkish report Tuesday on its outlook for raising interest rates and indicated it expects inflationary pressures to rise over the next nine months and global investors pushed into the safety of Canadian assets. Overall, USD/CAD traded with a low of 0.9421 and a high of 0.9491 before closing the day at 0.9431 in the New York session.

Australian Dollar

The Australian Dollar broke above resistance at 1.0800 in yesterday’s trading session as risk appetite surged post EU summit plan and is looking to 1.1000 in coming days. AUD/JPY is back above 85.00 Yen and is an important cross for providing fresh direction to the major. Overall, the AUD/USD traded with a low of 1.0693 and a high of 1.0856 before closing the day at 1.0839 in the New York session.

Euro-Yen

EUR/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is issuing a bearish stance. The RSI is above 44 and lies below the neutral zone. Overall, the cross has gained 0.84%.

Sterling-Yen

Aussie-Yen

Euro-Sterling

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is indicating a bullish and MACD is issuing a bearish signal. The RSI is above 46 reading and lies below the neutral region. The pair has gained 0.35%.

Sterling-Swiss

This cross is trading above 14 and below 50, 100 days moving average. Fast stochastic is issuing a bullish stance and MACD is also indicating a bullish tone. The RSI is above 44 and lies below the neutral region. The pair has gained 0.57%.

Appendix

Daily Pivot Points
			Trading Range
Contract	S3	S2	S1	Pivot	R1	R2	R3
EUR/USD	1.3934	1.4036	1.4229	1.4331	1.4524	1.4626	1.4819
USD/JPY	77.29	77.78	78.03	78.52	78.77	79.26	79.51
GBP/USD	1.5975	1.6047	1.6188	1.6260	1.6401	1.6473	1.6614
USD/CHF	0.8011	0.8074	0.8111	0.8174	0.8211	0.8274	0.8311
USD/CAD	0.9334	0.9378	0.9404	0.9448	0.9474	0.9518	0.9544
EUR/JPY	110.17	110.81	111.86	112.50	113.55	114.19	115.24
GBP/JPY	125.93	126.46	127.15	127.68	128.37	128.90	129.59
CHF/JPY	95.03	95.33	95.69	95.99	96.35	96.65	97.01
AUD/JPY	83.26	83.74	84.30	84.78	85.34	85.82	86.38
EUR/GBP	0.8706	0.8734	0.8782	0.8810	0.8858	0.8886	0.8934
EUR/CHF	1.1449	1.1529	1.1641	1.1721	1.1833	1.1913	1.2025
GBP/CHF	1.3093	1.3161	1.3235	1.3303	1.3377	1.3445	1.3519

Sources: News, Charts & Quotes (Courtesy: Reuters, US Department Of Treasury)

Forex Market Bulletin, July 21, 2011

noreply@blogger.com (Daily Forex Market News and Bullteins) — Thu, 21 Jul 2011 09:21:00 +0000

Pulse of the Market

· Greenback plummeted as intimidation height on deficit countdown and EU troubles ease

· Euro edged up after Germany and France agreed on a joint position for bailing out Greece

· British Pound to be had modest support by additional discouraged BoE minutes

· Canadian Dollar interest rate anticipated rally cooled down after the policy report

The Greenback ended yesterday’s trading session lower against the basket of major currencies. Investors are cautiously hopeful that the debt confrontation will come to a halt in the U.S and Europe this week. President Obama has expressed willingness to cooperate further, avoiding a default that would undoubtedly cause widespread volatility in the financial markets. However Obama’s July 22nd deadline is looking very susceptible right now and the lack of concrete developments over the past few days means it is very possible that a short term debt solution will be needed. If deadline comes to pass with no major news, it could perceive panic and selling of U.S Dollars. In the meantime, U.S economic data continued to disappoint with existing home sales declining in the month of June. Economists were looking for sales to rebound by 1.9 percent but unfortunately it fell for the third consecutive month, by 0.8 percent. If the debt ceiling is not raised, the weakness of the U.S economy will become a far bigger problem for the U.S Dollar. The Euro traded higher against the U.S Dollar in anticipation of a major announcement from Europe. One of the primary focuses of the currency market this week is today’s EU Summit. If they fail to introduce measures aimed at providing additional support for the financial system, investors could return to selling Euros as they realize the EU is all talk and no action. Nevertheless there is a hope because the emergency summit was delayed because the Germans did not want to have a meeting if there was nothing concrete to discuss. On the economic docket, German producer prices rose 0.1 percent. PMI numbers for the Euro Zone are scheduled for release today and these reports are always important because they provide the latest on the health of the Euro Zone economy. The British Pound as well joined the risk rally by appreciating against the U.S Dollar but its gains were limited against the U.S Dollar as it lost value against the Euro. The Japanese Yen strengthened against all the major currencies with the exception of the Swiss franc as investors sought safe haven assets ahead of the European leader meeting over containment of the sovereign debt crisis.

Time(GMT)	Economic Release	IMP	Actual	Forecast	Prior
04:30	Japan All Industry Activity Index (MoM) (MAY)	Medium		1.8%	1.5%
06:00	Switzerland Trade Balance (Swiss franc) (JUN)	Medium			3.25B
07:30	German Purchasing Managers' Index Manufacturing (JUL)	High		54.1	54.6
08:00	Euro Zone Purchasing Managers' Index Manufacturing (JUL)	High		51.5	52.0
08:30	U.K Retail Sales (YoY) (JUN)	Medium		0.0%	0.0%
09:00	Switzerland ZEW Survey (Expectations) (JUL)	Medium			-24.3
11:00	Euro Zone Meeting of Finance Ministers	High
12:30	U.S Initial Jobless Claims (JUL 15)	Low		410K	405K
14:00	U.S House Price Index (MoM) (JUL)	Medium		0.1%	0.8%

Euro

The Single Currency was quiet in yesterday’s trading session, consolidating ahead of the today's important economic summit in which a new Greece deal may be announced. The potential of disunity without the Union is another issue that investors will be closely watching. Overall, the EUR/USD traded with a low of 1.4132 and a high of 1.4239 before closing the day around 1.4216 in the New York session.

Yen

The Japanese Yen strengthened with risk off trade and weak U.S economic data helping push the USD/JPY and crosses lower. USD/JPY broke under support at 79.00 Yen and as it pushes lower the chance of BOJ intervention talk/action grows. The IMF recommended that the BOJ support the economy by picking up its asset purchases, its main policy tool at this point. Overall, the USD/JPY traded with a low of 78.69 and a high of 79.30 before closing the day around 78.76 in the New York session.

British Pound

The British Pound was quiet in a tight range with losses against the Yen and Euro the merely noticeable movement. The MPC minutes remained the same as the previous month and the outlook is for no action from the central bank for the next few months. Overall, the GBP/USD traded with a low of 1.6068 and a high of 1.6166 before closing the day at 1.6151 in the New York session.

Canadian Dollar

The Canadian Dollar strengthened to a two and a half month high against the Greenback in yesterday’s session, after the Bank of Canada discussed the prospect of higher rates and investors became more hopeful about European and U.S debt woes. Overall, USD/CAD traded with a low of 0.9455 and a high of 0.9511 before closing the day at 0.9473 in the New York session.

Australian Dollar

The Australian shrugged was strong even with negative stocks with most investors waiting for more news in regards to the U.S debt ceiling debate and Greece bailout before fresh direction. Major resistance is seen at 1.0800 and could contain while 1.0500 is providing plenty of support in recent weeks. Overall, the AUD/USD traded with a low of 1.0709 and a high of 1.0759 before closing the day at 1.0744 in the New York session.

Euro-Yen

EUR/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is issuing a bearish stance. The RSI is above 39 and lies below the neutral zone. Overall, the cross has lost 0.04%.

Sterling-Yen

Currently GBP/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing bullish and MACD is indicating a bearish stance. The RSI is above 39 reading and lies below the neutral zone. The pair has lost 0.34%.

Aussie-Yen

Currently, the cross is trading below 14, 50 and 100 days moving average. Fast stochastic gives bearish and MACD is also indicating a bearish stance. The RSI is above 43 reading and lies below the neutral region. The pair has lost 0.39%.

Euro-Sterling

Sterling-Swiss

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bullish stance and MACD is also indicating a bullish tone. The RSI is above 40 and lies below the neutral region. The pair has lost 0.41%.

Appendix

Daily Pivot Points
			Trading Range
Contract	S3	S2	S1	Pivot	R1	R2	R3
EUR/USD	1.4045	1.4089	1.4152	1.4196	1.4259	1.4303	1.4366
USD/JPY	77.92	78.31	78.53	78.92	79.14	79.53	79.75
GBP/USD	1.5993	1.6030	1.6091	1.6128	1.6189	1.6226	1.6287
USD/CHF	0.8085	0.8131	0.8162	0.8208	0.8239	0.8285	0.8316
USD/CAD	0.9392	0.9424	0.9448	0.9480	0.9504	0.9536	0.9560
EUR/JPY	110.96	111.31	111.64	111.99	112.32	112.67	113.00
GBP/JPY	125.55	126.13	126.67	127.25	127.79	128.37	128.91
CHF/JPY	95.19	95.46	95.79	96.06	96.39	96.66	96.99
AUD/JPY	83.50	83.96	84.29	84.75	85.08	85.54	85.87
EUR/GBP	0.8709	0.8739	0.8769	0.8799	0.8829	0.8859	0.8889
EUR/CHF	1.1518	1.1561	1.1605	1.1648	1.1692	1.1735	1.1779
GBP/CHF	1.3081	1.3139	1.3186	1.3244	1.3291	1.3349	1.3396

Sources: News, Charts & Quotes (Courtesy: Reuters, US Department Of Treasury)

Forex Market Bulletin, July 20, 2011

noreply@blogger.com (Daily Forex Market News and Bullteins) — Wed, 20 Jul 2011 10:00:00 +0000

Pulse of the Market

· Greenback took no notice of budget movement, earnings and suffers for risk rally

· Euro unpredictably steady in spite of Portugal surprise slit and rising Greece uncertainty

· BoE rate decision has been a non-event for the Sterling for a number of months now

· Australian Dollar ragged among a rally in capital markets and dovish turn from RBA

The U.S Dollar ended yesterday’s trading session on a mixed note. With only 2 more days until President Obama’s deadline, lawmakers in Washington are working quickly to reach a deal that would avoid driving the U.S Dollar to fresh lows and trigger sharp volatility across the financial market. Yesterday Moody’s placed 5 out of 15 Aaa states on review for downgrade, reminding everyone about the susceptibility of the U.S sovereign debt rating. Meanwhile the latest U.S economic reports modestly contributed to the rally. Housing starts jumped 14.6 percent last month while building permits rose 2.5 percent. As in recent months, these housing markets numbers have been extremely volatile, yet the rebound is however encouraging especially when investors are taking a break from the selling. Existing home sales are scheduled for release today and a rebound is also expected after the sharp decline in May. The Single Currency traded slightly higher yesterday. Unfortunately continued concerns about the European sovereign debt crisis have prevented the EUR/USD from enjoying the same gains as other high yielding currencies. Euro failed to hold onto all of its gains after German Chancellor Merkel told investors not to get their hopes up for a spectacular solution to the European sovereign debt crisis tomorrow. The IMF also threw cold water on the EUR/USD rally by warning about the danger of contamination and the consequences of a default. There is no question that the European sovereign debt crisis is a tough one to solve and the chance of it going away anytime soon. The economic sentiment portion of the German ZEW survey fell from -9 to -15 while the current situation component increased to 90.6 from 87.6. The British Pound strengthened against the U.S Dollar and Euro as risk flows returned to the market. There was no U.K economic data from the U.K yesterday but the Bank of England will release the minutes from their most recent monetary policy meeting today. Also on the docket today is nationwide consumer confidence. The market expects a 51 reading following 55 from May as consumer are feeling the squeeze from inflation. The Japanese Yen weakened against all the majors except for the Swiss Franc. With debt talks on both sides of the Atlantic seemingly reach closer to resolution, investors picked up risky asset putting downward pressure on the Yen.

Time(GMT)	Economic Release	IMP	Actual	Forecast	Prior
05:00	Japan Leading Index (MAY)	Medium			99.8
06:00	German Producer Prices (MoM) (JUN)	Low		0.0%	0.0%
08:30	Bank of England Minutes	High
14:00	Euro Zone Consumer Confidence (JUL)	Medium		-10.2	-9.8
14:00	U.S Existing Home Sales (JUN)	Medium		4.90M	4.81M
14:30	Canada Monetary Policy Report	High
23:01	U.K Nationwide Consumer Confidence	Medium		49	55

Euro

The Single Currency gained to the 1.4200 level in yesterday’s trading session on the back of the positive sentiment change and some progress on the second Greece Bailout plan ahead of tomorrow’s EU Summit. German ZEW was poor falling to -15.1 against -9 previously. Overall, the EUR/USD traded with a low of 1.4068 and a high of 1.4216 before closing the day around 1.4150 in the New York session.

Yen

The Japanese Yen found support under 79.00 Yen and finished near the highs of the recent range on strong cross buying. AUD/JPY reclaimed the 85.00 Yen level with the 200 point gain in the Dow Jones providing the fuel for the rise. Overall, the USD/JPY traded with a low of 78.81 and a high of 79.26 before closing the day around 79.17 in the New York session.

British Pound

The British Pound rallied with the rest of the risk currencies but found resistance at last week’s high near 1.6180. The market is volatile with news coming from both directions lately and providing plenty of trading opportunities between 1.5900-1.6200. Overall, the GBP/USD traded with a low of 1.6040 and a high of 1.6176 before closing the day at 1.6122 in the New York session.

Canadian Dollar

The Canadian Dollar strengthened to its highest level against the U.S Dollar in two and a half months yesterday after the Bank of Canada indicated more firmly than before that it was closer to raising interest rates with the domestic economy seen growing at a healthy pace. Overall, USD/CAD traded with a low of 0.9480 and a high of 0.9600 before closing the day at 0.9499 in the New York session.

Australian Dollar

The Australian shrugged off weakness in Asian session on the back of neutral RBA minutes to track the stock markets and break back above 1.0735. The RBA has dropped the need to raise rates at some stage from their minutes this month with a more balanced view of the economy which had shown some signs of slowing in recent months. Overall, the AUD/USD traded with a low of 1.0598 and a high of 1.0740 before closing the day at 1.0731 in the New York session.

Euro-Yen

EUR/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is issuing a bearish stance. The RSI is above 38 and lies below the neutral zone. Overall, the cross has gained 0.44%.

Sterling-Yen

Currently GBP/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing bullish and MACD is indicating a bearish stance. The RSI is above 41 reading and lies below the neutral zone. The pair has gained 0.60%.

Aussie-Yen

Euro-Sterling

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is indicating a bullish and MACD is issuing a bearish signal. The RSI is above 41 reading and lies below the neutral region. The pair has lost 0.16%.

Sterling-Swiss

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bullish stance and MACD is also indicating a bearish tone. The RSI is above 41 and lies below the neutral region. The pair has gained 1.23%.

Appendix

Daily Pivot Points
			Trading Range
Contract	S3	S2	S1	Pivot	R1	R2	R3
EUR/USD	1.3925	1.3997	1.4073	1.4145	1.4221	1.4293	1.4369
USD/JPY	78.45	78.63	78.90	79.08	79.35	79.53	79.80
GBP/USD	1.5913	1.5977	1.6049	1.6113	1.6185	1.6249	1.6321
USD/CHF	0.8041	0.8096	0.8168	0.8223	0.8295	0.8350	0.8422
USD/CAD	0.9333	0.9406	0.9453	0.9526	0.9573	0.9646	0.9693
EUR/JPY	110.20	110.67	111.35	111.82	112.50	112.97	113.65
GBP/JPY	125.95	126.37	127.01	127.43	128.07	128.49	129.13
CHF/JPY	94.36	95.04	95.54	96.22	96.72	97.40	97.90
AUD/JPY	82.88	83.31	84.13	84.56	85.38	85.81	86.63
EUR/GBP	0.8698	0.8727	0.8750	0.8779	0.8802	0.8831	0.8854
EUR/CHF	1.1382	1.1448	1.1555	1.1621	1.1728	1.1794	1.1901
GBP/CHF	1.2911	1.3005	1.3147	1.3241	1.3383	1.3477	1.3619

Sources: News, Charts & Quotes (Courtesy: Reuters, US Department Of Treasury)

Forex Market Bulletin July 2011

noreply@blogger.com (Daily Forex Market News and Bullteins) — Tue, 19 Jul 2011 08:08:00 +0000

Pulse of the Market

· Greenback demonstrated mixed progress across majors as debt troubles persist

· Single Currency stabilizes as crises headlines recede, ECB reports no bond purchases

· Canadian Dollar investors will look to BoC pronouncement to direct rate outlook

· Australian Dollar stumbled after RBA minutes report restrained GDP outlook

The U.S Dollar ended yesterday’s trading session higher against all of the major currencies with the exception of the Japanese Yen against which it held steady for the second trading day in a row. The U.S debt confrontation may be front and center this week, but the desire for safety has still driven investors towards the Greenback. President Obama has given Congress until Friday to reach a deal on raising the debt ceiling. If lawmakers fail to agree on a deficit reduction package by that time, even the Greenback’s safe haven status may not be able to save the U.S Dollar. Rating agencies already warned that the U.S will lose its esteemed AAA rating if the debt ceiling is not increased. If the debt ceiling is increased by August 2nd, the U.S would avoid a downgrade by the top 3 rating agencies. The latest TIC report showed foreign investors selling Dollars for the first time in 11 months. Demand for U.S Dollars fell by $67.5B in May, which was the first negative print since June 2010 and the largest sale of U.S Dollars since July 2009. The Euro ended the session lower against the U.S Dollar. Even though the traded lower against the Greenback, the currency’s recovery during the second half of the trading session reflects a significant shift in sentiment. There was no clear driver for the twist in the market aside from the Greek Finance Minister’s comment that a European debt deal could be reached on Thursday. With the EU stress tests failing to stabilize the market, a special summit will be held on the 21st to come up with a new rescue plan for Greece and to take a big step towards ending the sovereign debt crisis. No major Euro Zone economic reports were released yesterday but the German ZEW survey and investor sentiment is due for release today. The British Pound traded lower against both the U.S Dollar and the Euro. According to the Right move House Price Index, asking prices in the U.K dropped by an average of 1.6 percent in July. With an inflation rate at more than double the Bank of England’s target, U.K economic recovery is losing momentum. With no economic data on the docket today, the movement of the British Pound would still hinge on the risk flow in the market. The Japanese Yen strengthened against all the major currencies as risk aversion drove investors to safer assets. The European sovereign debt crisis and possible U.S credit downgrade are big uncertainties in the market that could have devastating after-effects.

Time(GMT)	Economic Release	IMP	Actual	Forecast	Prior
01:30	Australia Reserve Bank's Board July Minutes	High
09:00	German ZEW Survey (Economic Sentiment) (JUL)	High		-12.5	-9.0
09:00	Euro Zone ZEW Survey (Economic Sentiment) (JUL)	Medium			-5.9
12:30	Canada Leading Indicators (MoM) (JUN)	Medium		0.8%	1.0%
12:30	U.S Building Permits (JUN)	Medium		595K	609K
12:30	U.S Housing Starts (JUN)	Medium		575K	560K
13:00	Bank of Canada Rate Decision (JUL 19)	High		1.00%	1.00%

Euro

The Single Currency hit lows in yesterday’s European session before stock markets rebounded and hope grew an EU meeting on Thursday will announce an immediate package to support Greece. The market is still very cautious of a contamination in the Debt crisis with Spain/Italy still under pressure and Portugal/Ireland wanting more assistance. Overall, the EUR/USD traded with a low of 1.4013 and a high of 1.4130 before closing the day around 1.4113 in the New York session.

Yen

The Japanese Yen continued to do very little against the Dollar with most of the action on the crosses which are being sold on rallies in the risk averse environment. The levels are close to BOJ intervention after the Earthquake and could find more conduct or character that is right and virtuous from Japanese officials. Overall, the USD/JPY traded with a low of 78.94 and a high of 79.17 before closing the day around 79.02 in the New York session.

British Pound

The British Pound was a distinguished underperformer with EUR/GBP rebounding and British Pound dropping below the 1.6100 level after the recent rally ran out of steam. The outlook is very mixed with more range trading expected until the Bank of England's monetary policy outlook is more clearly outlined. Overall, the GBP/USD traded with a low of 1.6003 and a high of 1.6127 before closing the day at 1.6055 in the New York session.

Canadian Dollar

The Canadian Dollar weakened against its U.S counterpart yesterday as fears of sovereign debt default in Europe and the United States undercut commodity prices and the market awaited an interest rate announcement by the Bank of Canada today. The Loonie is associated with risky assets because of Canada’s heavy reliance on commodity exports for economic growth. Overall, USD/CAD traded with a low of 0.9538 and a high of 0.9634 before closing the day at 0.9593 in the New York session.

Australian Dollar

The Australian Dollar was pushed lower with the Euro in risk off trading in Asian and European session and rebounded aggressively with Gold breaking above $1600 and the U.S Dollar coming under pressure. AUD/NZD hit multi month lows as the New Zealand Dollar outperforms on strong Inflation and rate hike expectations. Overall, the AUD/USD traded with a low of 1.0559 and a high of 1.0653 before closing the day at 1.0606 in the New York session.

Euro-Yen

EUR/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is also issuing a bearish stance. The RSI is above 35 and lies below the neutral zone. Overall, the cross has lost 0.28%.

Sterling-Yen

Aussie-Yen

Currently, the cross is trading below 14, 50 and 100 days moving average. Fast stochastic gives bearish and MACD is also indicating a bearish stance. The RSI is above 39 reading and lies below the neutral region. The pair has lost 0.36%.

Euro-Sterling

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is indicating a bearish and MACD is also issuing a bearish signal. The RSI is above 41 reading and lies below the neutral region. The pair has gained 0.24%.

Sterling-Swiss

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is also indicating a bearish tone. The RSI is above 30 and lies below the neutral region. The pair has gained 0.10%.

Appendix

Daily Pivot Points
			Trading Range
Contract	S3	S2	S1	Pivot	R1	R2	R3
EUR/USD	1.3924	1.3968	1.4041	1.4085	1.4158	1.4202	1.4275
USD/JPY	78.69	78.81	78.92	79.04	79.15	79.27	79.38
GBP/USD	1.5872	1.5938	1.5996	1.6062	1.6120	1.6186	1.6244
USD/CHF	0.8027	0.8064	0.8119	0.8156	0.8211	0.8248	0.8303
USD/CAD	0.9447	0.9492	0.9543	0.9588	0.9639	0.9684	0.9735
EUR/JPY	109.81	110.22	110.88	111.29	111.95	112.36	113.02
GBP/JPY	125.71	126.18	126.53	127.00	127.35	127.82	128.17
CHF/JPY	95.08	95.77	96.20	96.89	97.32	98.01	98.44
AUD/JPY	82.75	83.13	83.47	83.85	84.19	84.57	84.91
EUR/GBP	0.8639	0.8671	0.8730	0.8762	0.8821	0.8853	0.8912
EUR/CHF	1.1301	1.1352	1.1445	1.1496	1.1589	1.1640	1.1733
GBP/CHF	1.2926	1.2981	1.3054	1.3109	1.3182	1.3237	1.3310

Sources: News, Charts & Quotes (Courtesy: Reuters, US Department Of Treasury)

Forex Bulletin, June 20, 2011

noreply@blogger.com (Daily Forex Market News and Bullteins) — Mon, 20 Jun 2011 10:08:00 +0000

FOREX Newsletter

Pulse of the Market

· Greenback ended past week on a notably weak footing on concerns Fed rate decision

· Single Currency struggle for relief with Greece and Moody’s raises a red flag on Italy

· Sterling is finding more of its direction from its counterparts than its own fundamental backdrop

· Canadian Dollar seems to holding strong as rate expectations despite U.S oil drop

The U.S Dollar ended Friday’s trading session lower against the basket of major currencies. Most investors will be waiting for breaking news about Greece, it will be important for everyone to not lose sight of the other big event risk this week, which is the Federal Reserve’s monetary policy announcement. End of the central bank’s $600 billion asset purchase program is near and the question is will the Fed be distressed enough about the recent disappointments in U.S data and the risk that the sovereign debt crisis poses to change their plans on monetary policy. Recent comments from Ben Bernanke suggest that he is worried about the labor market and consumer spending, so tighter monetary policy is not even a consideration. Friday’s economic reports were mixed, which confirms that there is no reason for the central bank to rush. The University of Michigan Consumer Sentiment survey fell from 74.3 to 71.8 in June. Leading indicators on the other hand rose 0.8 percent, which was more than double the market's expectations. The Euro has recovered nicely against the U.S Dollar on Friday thanks to German Chancellor Merkel’s willingness to cooperate but that could change quickly if she receives pressure from her own party and voters. If European officials want to restore confidence in European assets, they will need to get the consent of rating agencies that have said re-profiling, restructuring and rollover could trigger a credit event. European officials must do all they can to reach an agreement and do it quickly. Although there is a hope that European leaders will come up with a rescue plan that satisfies both the rating agencies and the market, it is a tall task and the challenges that have already forced Finance Ministers to start their meeting one day earlier on June 19th. If Greece defaults on their debt, it could tip off a global financial market sell-off. The British Pound ended the session unchanged against the Greenback but it has been a tough for the Cable. Pound fell to its lowest level since the beginning of the month and came within a beat of its 2 month low. The minutes will be released on Wednesday but it won’t take much to guess how central bank feels. The Japanese Yen traded higher against all of the major currencies with the exception of the New Zealand Dollar. While the market is bracing for the next chapter of the Greek tragedy, Japanese Yen was helped by a better sentiment in the domestic economy and risk aversion flow.

Time(GMT)	Economic Release	IMP	Actual	Forecast	Prior
	Japan Cabinet Office Monthly Economic Report	Medium
05:00	Japan Leading Index (APR)	Low			96.4
06:00	German Producer Prices (MoM) (MAY)	Medium		0.1%	1.0%
08:00	Euro Zone Current Account n.s.a (Euros) (APR)	Low			-3.8B
08:00	Italian Industrial Orders s.a (MoM) (APR)	Low		-4.0%	8.1%
08:00	Italian Industrial Sales s.a (MoM) (APR)	Low		-1.0%	2.0%

Euro

The Single Currency extended its gains against its major counterparts. The move higher came as reporters received word that European officials were building a consensus on Greece following a seemingly positive meeting between French President Sarkozy and German Chancellor Merkel. Overall, the EUR/USD traded with a low of 1.4126 and a high of 1.4338 before closing the day around 1.4307 in the New York session.

Yen

The Japanese Yen gained on Friday, pushing ever closer to the key 80.0 barrier against the Dollar. While rising equities in the U.S has prompted investors to close out long U.S Dollar positions, mainly against the Euro, the Japanese Yen remains well supported against its major counterparts in its role as a safe haven investment. Overall, the USD/JPY traded with a low of 80.00 and a high of 80.66 before closing the day around 80.00 in the New York session.

British Pound

The British Pound was slightly higher on a modest improvement in risk sentiment, but remains towards the lower end of its recent ranges. A negative outlook for the U.K economy will continue to weigh on the Pound, but improving risk sentiment will provide downside support. Overall, the GBP/USD traded with a low of 1.6092 and a high of 1.6194 before closing the day at 1.6178 in the New York session.

Canadian Dollar

The Canadian Dollar rebounded against the Greenback despite the 2 percent drop in oil prices. Canadian wholesale sales edged down 0.1 percent in April, following a 0.3 percent gain in March. The April sales report gains in three of the seven industries were offset by declines in the four others, particularly in the miscellaneous and the building material and supplies industries. Overall, the USD/CAD traded with a low of 0.9773 and a high of 0.9867 before closing the day at 0.9799 in the New York session.

Australian Dollar

The Australian Dollar turned positive on Friday as investors assumed riskier positions with the outlook improved for a plan to extend Greece more financial aid. However, gains have been tempered as consumer spending in China, which is Australia’s main trading partner, slowed to less than the average of the past five years. Overall, the AUD/USD traded with a low of 1.0504 and a high of 1.0634 before closing the day at 1.0615 in the New York session.

Euro-Yen

EUR/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is also issuing a bearish stance. The RSI is above 40 and lies below the neutral zone. Overall, the cross has lost 0.14%.

Sterling-Yen

Currently GBP/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing bearish and MACD is also indicating a bearish stance. The RSI is above 36 reading and lies below the neutral zone. The pair has lost 0.67%.

Aussie-Yen

Currently, the cross is trading below 14, 50 and 100 days moving average. Fast stochastic gives bearish and MACD is also indicating a bearish stance. The RSI is above 41 reading and lies below the neutral region. The pair has lost 0.25%.

Euro-Sterling

This cross is trading above 14, 50 and 100 days moving average. Fast stochastic is indicating a bearish and MACD is also issuing a bearish signal. The RSI is above 52 reading and lies above the neutral region. The pair has gained 0.55%.

Sterling-Swiss

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bullish stance and MACD is also indicating a bullish tone. The RSI is above 37 and lies below the neutral region. The pair has lost 0.20%.

Appendix

Daily Pivot Points
			Trading Range
Contract	S3	S2	S1	Pivot	R1	R2	R3
EUR/USD	1.3964	1.4045	1.4176	1.4257	1.4388	1.4469	1.4600
USD/JPY	79.12	79.56	79.78	80.22	80.44	80.88	81.10
GBP/USD	1.6013	1.6053	1.6115	1.6155	1.6217	1.6257	1.6319
USD/CHF	0.8379	0.8411	0.8446	0.8478	0.8513	0.8545	0.8580
USD/CAD	0.9665	0.9719	0.9759	0.9813	0.9853	0.9907	0.9947
EUR/JPY	112.76	113.23	113.85	114.32	114.94	115.41	116.03
GBP/JPY	128.07	128.71	129.07	129.71	130.07	130.71	131.07
CHF/JPY	93.12	93.69	93.99	94.56	94.86	95.43	95.73
AUD/JPY	83.66	84.10	84.50	84.94	85.34	85.78	86.18
EUR/GBP	0.8706	0.8737	0.8790	0.8821	0.8874	0.8905	0.8958
EUR/CHF	1.1869	1.1926	1.2031	1.2088	1.2193	1.2250	1.2355
GBP/CHF	1.3554	1.3597	1.3660	1.3703	1.3766	1.3809	1.3872

Sources: News, Charts & Quotes (Courtesy: Reuters, US Department Of Treasury)

Forex Bulletin, June 17, 2011

noreply@blogger.com (Daily Forex Market News and Bullteins) — Fri, 17 Jun 2011 12:02:00 +0000

FOREX Newsletter

Pulse of the Market

· The Greenback might appreciate further as risk aversion grips the financial market

· Slowing inflation in Europe paired with the ongoing weakness in the economy bear down EUR/USD

· The larger than expected drop in U.K retail sales weighed on the British Pound

· Japan’s number of new condominium sales in the greater Tokyo area rose less than forecast in May

The Greenback ended yesterday’s trading session on a mixed note. Regardless of the sluggish pace of U.S growth, the U.S Dollar is still a safe haven currency and in times of heightened uncertainty, investors will buy Dollars despite how grim the outlook for the U.S economy may be. Yesterday’s economic reports were not all bad, making some investors more comfortable with holding Dollars. Jobless claims dropped to 414k, which is a relief because it indicates that claims are moving in the right direction. Continuing claims also declined from an upwardly revised 3.696 million to 3.675 million. Housing starts grew less than expected but with the upward revision to last month's report. Building permits also jumped 8.7 percent last month, which was the largest increase since the beginning of the year. The Philadelphia Fed manufacturing index turned negative in the month of June with the index falling to its lowest level in nearly 2 years. The Single Currency rebounded to end the day higher against the U.S Dollar as there was both fear and hope in the financial markets. The fear comes from the challenges that the EU and IMF face in crafting a deal for Greece. In order for members of the European Union to agree on a rescue plan for Greece, tough austerity measures need to be taken. Unfortunately the latest political troubles not only slowed down the talks but could put the country’s next aid payment at risk. However the problem is that Greek Prime Minister Papandreou is having a very difficult time gaining support within his own government for the austerity measures and his people have responded with violent protests. And the hope was that there was widespread speculation that China will come and bailout Greece. Although this has not yet confirmed, but this is not the first time that China has come to the aid of Europe as they have been big buyers of Europe’s bailout bonds. The euro also benefitted from the IMF’s confidence that a deal will be reached, allowing them to make their next aid payment in early July. The British Pound extended its losses against the U.S Dollar after the retail sales report printed two times worse than expectations. High commodity prices, deterioration in labor conditions, volatility in the financial market and austerity measures by the government have restrained consumers from spending. Retail sales dropped 1.4 percent in May, erasing the past month’s gains. The Japanese Yen strengthened against all of the major currencies except the Swiss franc, as risk aversion flows came back to the market.

Time(GMT)	Economic Release	IMP	Actual	Forecast	Prior
08:00	Italian Trade Balance (Total) (Euros) (APR)	Low			-3943M
09:00	Euro Zone Trade Balance (Euros) (APR)	Medium		-1.9B	2.8B
12:30	Canada Wholesale Sales (MoM) (APR)	Low		-0.3%	0.1%
13:55	U.S U. of Michigan Confidence (JUN)	High		74.0	74.3
14:00	ECB Publishes June Monthly Report	Medium
14:00	U.S Leading Indicators (MAY)	Low		0.3%	-0.3%

Euro

The Single Currency ended the day slightly higher but with contained gains as the Greek Prime Minister reshuffled his cabinet and put him forward for a vote of no confidence. While many expect that the EU/IMF will likely throw Greece a lifeline, any further "bailout" does not take default or exit from the Euro Zone, but rather provides a bit of breathing room. Overall, the EUR/USD traded with a low of 1.4072 and a high of 1.4218 before closing the day around 1.4211 in the New York session.

Yen

The Japanese Yen was stronger in yesterday’s trading session as investors remain generally risk averse. Regardless of an economy in recession, the yen remains a risk aversion tool with sufficient domestic demand for Japanese government debt. With a default looming in Greece, and weak economic data out of the US, the Yen may likely continue to perform well. Overall, the USD/JPY traded with a low of 80.47 and a high of 81.04 before closing the day around 80.65 in the New York session.

British Pound

The British Pound was lower against the U.S Dollar and the Euro yesterday after disappointing U.K retail sales data. Sales fell 1.4% in May, exceeding the 0.6% decline that was expected. BoE Governor Mervyn King told reporters that officials should hold rates at a record low because weak growth in wages and the struggling economy signal the above target prices will ease. Overall, the GBP/USD traded with a low of 1.6077 and a high of 1.6224 before closing the day at 1.6156 in the New York session.

Canadian Dollar

The Canadian Dollar traded lower as investors' expectations for global growth ease. Canadian Finance Minister Jim Flaherty, urged his counterparts to address waning investor confidence in both the U.S and Europe, Canada's two main export markets. Falling oil prices have also weighed on the Loonie. Overall, the USD/CAD traded with a low of 0.9771 and a high of 0.9896 before closing the day at 0.9812 in the New York session.

Australian Dollar

The Australian Dollar also ended the session lower. The New auto sales drop from -4.1 percent in April to -7.6 percent in May signaling that consumers remained cautious of buying big-ticket items. Overall, the AUD/USD traded with a low of 1.0476 and a high of 1.0589 before closing the day at 1.0555 in the New York session.

Appendix

Daily Pivot Points
			Trading Range
Contract	S3	S2	S1	Pivot	R1	R2	R3
EUR/USD	1.3970	1.4021	1.4116	1.4167	1.4262	1.4313	1.4408
USD/JPY	79.83	80.15	80.40	80.72	80.97	81.29	81.54
GBP/USD	1.5934	1.6005	1.6081	1.6152	1.6228	1.6299	1.6375
USD/CHF	0.8375	0.8424	0.8450	0.8499	0.8525	0.8574	0.8600
USD/CAD	0.9632	0.9701	0.9757	0.9826	0.9882	0.9951	1.0007
EUR/JPY	112.29	112.88	113.76	114.35	115.23	115.82	116.70
GBP/JPY	128.00	128.86	129.59	130.45	131.18	132.04	132.77
CHF/JPY	93.94	94.20	94.67	94.93	95.40	95.66	96.13
AUD/JPY	83.49	84.04	84.58	85.13	85.67	86.22	86.76
EUR/GBP	0.8665	0.8693	0.8743	0.8771	0.8821	0.8849	0.8899
EUR/CHF	1.1772	1.1858	1.1952	1.2038	1.2132	1.2218	1.2312
GBP/CHF	1.3416	1.3530	1.3613	1.3727	1.3810	1.3924	1.4007

Sources: News, Charts & Quotes (Courtesy: Reuters, US Department Of Treasury)

Forex Bulletin, June 16, 2011

noreply@blogger.com (Daily Forex Market News and Bullteins) — Thu, 16 Jun 2011 08:02:00 +0000

FOREX Newsletter

Pulse of the Market

· Greenback rallied as investors worried about Euro Zone contagion from the Greek debt crisis

· EUR/USD fell more than 1.8 percent, which was the steepest decline in more than a month

· U.K jobless claims surged more than forecast, increased to 19.6K in May from 16.9K in April

· Manufacturing sales in Canada decreased 1.3 percent in April to 46.7 billion Canadian Dollars

The Greenback ended yesterday’s trading session higher against every major currency including the Japanese Yen and Swiss Franc which indicates that safe haven flows are not the only reason why investors are buying Dollars. Yesterday currencies and equities fell sharply with the EUR/USD experiencing its largest decline in 6 weeks. Even so the U.S economic data was weak. Manufacturing activity in the New York region slowed to its weakest level since November 2010 while industrial production growth increased less than the market had expected. Foreign purchases of U.S Dollars according to the Treasury's International Capital flow report also fell short of expectations while builder confidence fell to its lowest level in more than 2 years. Consumer prices rose 0.3 percent in May compared to a forecast of 0.1 percent. The current account balance, housing starts, building permits, jobless claims and the Philly Fed survey are scheduled for release today. The biggest story in the financial markets yesterday was the collapse of the Euro. Political, social and economic conflicts never go over well with investors and when the images of violent clashes between demonstrators in Athens and the police appeared on the TV screens, investors reacted by selling Euros. Police were fighting demonstrators with rubber rounds and tear gas; several people were injured and sent to the hospital. The EUR/USD fell more than 1.8 percent, which was the steepest decline in more than a month. The situation in Greece deteriorated rapidly, giving European leaders very little time to react. Greece is running out of time and reshuffling the Cabinet will only have limited effect because budget cuts are needed to convince countries like Germany to offer aid. The pressure is on for European officials to reach an agreement and the reaction in the EUR/USD shows just how much impact Greece’s problems can have on the financial markets. The British Pound erased a two day gain against the U.S Dollar as sovereign debt troubles hit all high beta currencies. U.K jobless claims surged more than forecast last month. According to the Claimant Count report, the number increased to 19.6K in May from 16.9K in April. Japanese Yen traded higher against all of the major currencies, except for the U.S Dollar. Japanese machine tools orders for May came out at 34.0 percent, slightly lower than the expected 34.2 percent.

Time(GMT)	Economic Release	IMP	Actual	Forecast	Prior
07:30	Swiss National Bank Rate Decision (JUN 16)	High		0.25%	0.25%
08:30	U.K Retail Sales (MoM) (MAY)	Low		-0.6%	1.1%
09:00	Euro Zone Consumer Price Index (MoM) (MAY)	Medium		0.0%	0.6%
12:30	U.S Building Permits (MAY)	Medium		557K	563K
12:30	U.S Housing Starts (MAY)	Medium		545K	523K
12:30	U.S Initial Jobless Claims (JUN 10)	Low		420K	427K
14:00	U.S Philadelphia Fed. (JUN)	Medium		7.0	3.9

Euro

The Single Currency fell sharply following the demonstrations in Greece combined with news Moody's placed three major French Banks for possible downgrade review. Support at 1.4400 broke quickly and the pair continued to plummet to fresh month lows under 1.4200. April Industrial Production rose 0.2% m/m as expected. Overall, the EUR/USD traded with a low of 1.4155 and a high of 1.4450 before closing the day around 1.4179 in the New York session.

Yen

The Japanese Yen moved higher in yesterday’s trading session as the U.S Dollar outperformed on safe have flows. The Japanese Yen did strengthen against risk currencies though with EUR/JPY breaking below the key 115.00 Yen level and NZD/JPY sharply back to 65.00 Yen. Overall, the USD/JPY traded with a low of 80.37 and a high of 81.04 before closing the day around 80.96 in the New York session.

British Pound

The British Pound was under heavy pressure on risk aversion and weak May Jobs data. U.K May Claimant Count came at +19.6k vs. 7k which was expected. EUR/GBP broke lower and this did provide support for the Cable which found a base under 1.6200. Overall, the GBP/USD traded with a low of 1.6167 and a high of 1.6382 before closing the day at 1.6191 in the New York session.

Canadian Dollar

The Canadian Dollar tumbled to its lowest point in 1-1/2 weeks yesterday, pressured by weak Canadian and U.S data and renewed concerns that the Greek debt crisis could escalate. The manufacturing sales in Canada decreased 1.3 percent in April to 46.7 billion Canadian Dollars. Overall, the USD/CAD traded with a low of 0.9668 and a high of 0.9827 before closing the day at 0.9787 in the New York session.

Australian Dollar

The Australian Dollar was very strong in the Asian session when RBA governor spoke hawkish about the chance of rate hikes if the July CPI data was above the bank's target rate. This was reversed in the stock slump and Euro crash later in the day but losses were limited so far. Overall, the AUD/USD traded with a low of 1.0534 and a high of 1.0713 before closing the day at 1.0575 in the New York session.

Euro-Yen

EUR/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is also issuing a bearish stance. The RSI is above 43 and lies below the neutral zone. Overall, the cross has lost 1.22%.

Sterling-Yen

Currently GBP/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing bullish and MACD is indicating a bearish stance. The RSI is above 44 reading and lies below the neutral zone. The pair has lost 0.50%.

Aussie-Yen

Currently, the cross is trading below 14, 50 and above 100 days moving average. Fast stochastic gives bullish and MACD is indicating a bearish stance. The RSI is above 46 reading and lies below the neutral region. The pair has lost 0.43%.

Euro-Sterling

This cross is trading below 14, 50 and above 100 days moving average. Fast stochastic is indicating a bearish and MACD is also issuing a bearish signal. The RSI is above 45 reading and lies below the neutral region. The pair has lost 0.73%.

Sterling-Swiss

This cross is trading above 14 and below 50, 100 days moving average. Fast stochastic is issuing a bullish stance and MACD is also indicating a bullish tone. The RSI is above 41 and lies below the neutral region. The pair has lost 0.22%.

Appendix

Daily Pivot Points
			Trading Range
Contract	S3	S2	S1	Pivot	R1	R2	R3
EUR/USD	1.3778	1.3966	1.4073	1.4261	1.4368	1.4556	1.4663
USD/JPY	79.87	80.12	80.54	80.79	81.21	81.46	81.88
GBP/USD	1.5896	1.6032	1.6111	1.6247	1.6326	1.6462	1.6541
USD/CHF	0.8355	0.8399	0.8463	0.8507	0.8571	0.8615	0.8679
USD/CAD	0.9535	0.9602	0.9694	0.9761	0.9853	0.9920	1.0012
EUR/JPY	112.16	113.35	114.07	115.26	115.98	117.17	117.89
GBP/JPY	129.12	129.89	130.49	131.26	131.86	132.63	133.23
CHF/JPY	93.87	94.27	94.58	94.98	95.29	95.69	96.00
AUD/JPY	83.99	84.62	85.11	85.74	86.23	86.86	87.35
EUR/GBP	0.8654	0.8701	0.8729	0.8776	0.8804	0.8851	0.8879
EUR/CHF	1.1868	1.1973	1.2033	1.2138	1.2198	1.2303	1.2363
GBP/CHF	1.3637	1.3709	1.3759	1.3831	1.3881	1.3953	1.4003

Sources: News, Charts & Quotes (Courtesy: Reuters, US Department Of Treasury)