Forex News, Advices, Strategies
Euro and Gbp accelerating fall
Thu, 2 Jul 2009 19:02:00 CDT
FXstreet.com (Buenos Aires) - With the first Asian hour, European currencies finally break under supports zones, triggering a 50/70 pips rally that send Euro to the lows 1.3900 while Gbp continues hovering around the 1.6330 zone. Market players seem to just be waiting for the Nikkei opening, that is expect to fall accelerating dollar and yen gains, after Wall Street nearly 3% lost early in America. Oil and gold also fell heavily early Thursday, with gold around 928/oz. and oil at $ 66.50 a barrel.
Supports for Euro lie at 1.3920, 1.3880 and 1.3810 zone, while resistance are located at 1.3990 1.4040 and finally 1.4080. For Gbp, supports come at 1.6320, 1.6255 and 1.6200, base of past weeks range. Resistances on the other hand are at 1.6380 1.6420 and 1.6490 zone.
For more information, read our latest forex news.
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4 Reasons To Take A Look At Silver ETFs
Thu, 2 Jul 2009 19:01:51 CDT
Reuters - U.S. mortgage applications climbed last week from a seven-month low, the Mortgage Bankers Association said on Wednesday, adding to emerging signs that the three-year housing market collapse may be abating.
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Forex Pin Bars: Hammers And Shooting Stars
Thu, 2 Jul 2009 19:01:36 CDT
As commodities continue to remain attractive, what is driving the increased demand of silver and its exchange traded funds (ETFs)?
Devangi Josji for the Economic Times states that rising industrial usage and a rebound in investment is what is making silver attractive.
Silver’s exceptional electric conductivity makes it ideal for use in electronic ...
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Emerson Electric (EMR) - Dividend Stock Analysis
Thu, 2 Jul 2009 19:01:03 CDT
Pin bars are essentially the equivalent of hammers and shooting stars in the candlestick world. These single-bar price action indicators can be exceptionally effective confirming factors for potential market turns in the forex market. Used in conjunction with other trade decision factors, most notably support and resistance, pin bars can give valuable ...
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Australia's Supply of Services Grow for First Time in 15 Months
Thu, 2 Jul 2009 19:00:37 CDT
The level of services provided in Australia in May grew for the first time in 15 months as renewed risk-appetite came on the back of governmental cash...
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Government Spending Faces Large Structural Deficits, N.Z.'s English Says
Thu, 2 Jul 2009 18:24:17 CDT
New Zealand's government faces the threat of large structural budget deficits that could last a decade if not curbed, Finance Minister Bill English said...
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Video: 07/02 Economy Loses 467,000 Jobs
Thu, 2 Jul 2009 18:05:32 CDT
Investors have realized the value in water investments, as companies that manage potable water for consumption or irrigation are becoming profitable. The scarcity of water has taken the resource to a commodity-level investment and exchange traded funds (ETFs) are a way to get good portfolio exposure.
For investors interested in the water sector, ...
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US Dollar, Japanese Yen Up Sharply as Disappointing US NFPs Stoke Flight-to-Safety
Thu, 2 Jul 2009 17:25:20 CDT
- Euro Down as ECB Leaves Door Open to Further Rate Cuts - Swiss Franc Gain vs. Euro Presents SNB Intervention Risks Through Friday - British Pound Falls...
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Video: 07/02 Investors Steer Clear Of Higher-Yielding Currencies
Thu, 2 Jul 2009 17:14:30 CDT
The economy continues to lose jobs, now at a faster rate than in the last few months. While the unemployment rate jumped to 9.5%
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Video: 07/02 Valdes: V-Shape Recovery Unlikely
Thu, 2 Jul 2009 17:01:28 CDT
Poor jobs data from the United States and Europe has led the way for further declines within higher-yielding currencies this session.
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Video: 07/02 Continental Has High Hopes
Thu, 2 Jul 2009 16:44:59 CDT
June’s monthly candle closed with a ‘doji’ at Fibonacci resistance - that’s a bearish development as we start the new month of July. Let’s take a look at the S&P 500 monthly chart to see its current structure.
We see the S&P 500 is still below levels from 1998 - in fact, price ...
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NZDUSD ST Channel Break and RSI Signal
Thu, 2 Jul 2009 16:06:09 CDT
The NZDUSD has broken below a short term channel. This is a good sign for breakout traders but a break of .6150 is required in order to break the month...
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Markets fell sharply; Dollar and Yen stronger
Thu, 2 Jul 2009 15:07:00 CDT
FXstreet.com (Córdoba) – Wall Street plunged today. The Dow Jones and the Nasdaq fell more than 2% following the slump in European markets. Oil collapsed falling below $67 a barrel. Neither gold could escape the bear market and dropped 1.05%. A bad unemployment report change investor’s mood. The Yen and the Dollar rose across the board.
EUR/USD is testing the support at 1.4000. The pair was unable to hold position below that level and pullback to 1.4030. But in the final hour of operations at Wall Street Greenback got stronger and started to rise again. GBP/USD also fell but a smaller pace.
USD/JPY bottomed today at 95.70 during the American session. The pair rallied downside after the jobs reports. The Yen rose across the board today with strong gains against CHF, EUR and GBP.
For more information, read our latest forex news.
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High Yields With Low Risk – Is It Possible With ETFs?
Thu, 2 Jul 2009 15:00:30 CDT
Emerson Electric Co. (EMR), a diversified global technology company, engages in designing and supplying product technology and delivering engineering services to various industrial and commercial, and consumer markets worldwide. The company operates through five segments: Process Management, Industrial Automation, Network Power, Climate Technologies, and Appliance and Tools. The company is ...
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Sell Signal on SP500 Monthly Chart
Thu, 2 Jul 2009 14:59:50 CDT
Junes monthly candle closed with a doji at Fibonacci resistance...
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Walter Industries WLT Some Major Outperformance in the Coal Space
Thu, 2 Jul 2009 14:59:45 CDT
Long time readers will know I made a lot of outperformance in the coal space in late...
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Canada: Boom in Private Health Care Business
Thu, 2 Jul 2009 14:59:37 CDT
Private forprofit clinics are a booming business in Canada a country often...
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Forex: USD/CHF in range between 1.0820 and 1.0860
Thu, 2 Jul 2009 14:44:00 CDT
FXstreet.com (Córdoba) – The Dollar is rising against the Swiss Franc for the day. Since the American session the pair has been moving inside a range between 1.0860 and 1.0820. So far today the pair is rising 0.87% from the opening price. Against the Euro the Swissy is rising. The pair keeps rising after the Swiss National Bank intervened in the market. EUR/CHF is testing levels below 1.5180 after breaking below the support zone at 1.5200.
Ralph Shell, ForexRazor's analyst, comments: “It looks like traders are selling the USD off on the CHF, daring the Swiss National Bank to come and intervene again. We prefer the long side in the 1.07/1.0750 range which we hope is close enough to a point where fear of intervention will discourage selling. The EURCHF 1.50 level may be of more concern to the SNB than the USD so let's don't get too aggressive with this trade”.
For more information, read our latest forex news.
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Video: 07/02 Asian Markets Mixed
Thu, 2 Jul 2009 14:38:16 CDT
The Cable is reacting negatively to the negative unemployment data points from both the U.S. and EU. Additionally, Britain’s construction PMI contracted from its previously release, coming in below analyst expectations. The positive sentiment the Pound has garnered over the past couple months has been dented by the disappointing GDP ...
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The Case For Investing In Water ETFs
Thu, 2 Jul 2009 14:00:56 CDT
When exchange traded funds (ETFs) and other assets in the markets perform an impressive nosedive, investors tend to question their portfolios and investment strategies. But there is a way to still generate yields while reducing risk in the long run.
People shouldn’t give too much credence to spur-of-the-moment, reactionary investment ideas after ...
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British Pound Crosses
Thu, 2 Jul 2009 13:53:28 CDT
-GBPCHF reverses from near channel resistance / Fibonacci extension -GBPCAD testing Fibonacci extension as resistance -GBPAUD and GBPNZD working higher...
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Forex: EUR/USD recovery finds resistance at 1.4030
Thu, 2 Jul 2009 13:41:00 CDT
FXstreet.com (Córdoba) – The Euro is recovering against the Dollar after falling constantly following the unemployment report. EUR/USD tested levels below 1.4000 but it was rejected from those levels and started to recover. The pair has found resistance at 1.4030. On the upside the next resistance lies at 1.4055. The Euro lost yesterday’s gains and is falling 0.95% so far today but is far from intra-day low (1.3986).
Ralph Shell, ForexRazor's analyst, comments: “Once again the pair is knocking on the door of the high ground above 1.41, and if we spend a little time consolidating the gains, there might be more. Forget the reason or the explanations for the move, markets often do what they do because they can. We are currently trading at 1.4120, and looking at the chart, there has to be stops above 1.4140.” And also affirms that during a holiday shortened week anything can happen: “Failure to hold the gains may result in a reversal day”.
For more information, read our latest forex news.
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Forex: GBP/USD back above 1.6400
Thu, 2 Jul 2009 13:08:00 CDT
FXstreet.com (Córdoba) – The Pound is recovering against the Dollar. GBP/USD is now above the price it had before the release of the employment report. The pair has risen after bottoming 1.6320 (intra-day low) but is still down 0.50% from the opening price. On the recovery path GBP/USD has found resistance at the 1.6430 zone.
Ralph Shell, ForexRazor's analyst, comments: “This pair has spent the better part of the last month in the 1.62 to 1.65 trading area. A brief visit to new highs this week was quickly repulsed, and we are now flirting with a downside retreat. Some of the short term moving averages have turned down. UK economic news failed to confirm an imminent recovery, but we really have a less ugly contest as things are not that bright on this side of the Atlantic either.”
For more information, read our latest forex news.
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Euro Short Produces Favorable Result; Stops Trailed to Cost (Daily Classical)
Thu, 2 Jul 2009 12:23:31 CDT
• Euro short gains momentum; profits booked and stops trailed • Dollar/Yen well capped by 97.00; 93.55-85 back in focus • Cable price action taking form...
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In A Market Collapse, You Want Your Portfolio To Be Focused On Brazil Or Germany, And Not Hong Kong!
Thu, 2 Jul 2009 12:00:42 CDT
With the worst recesion since the 1930s, broker Alan Valdes says no one should expect a quick and painless recovery, just look at the employment numbers.
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Sell Signal On S&P 500 Monthly Chart?
Thu, 2 Jul 2009 11:51:42 CDT
The Capgemini/Merrill Lynch World Wealth Report appeared last week and it makes for some grim reading. But it also provides global investors with some insights into the best markets to invest in.
The global population of high net worth individuals, or HNWIs - those with investible assets of more than $1 million - declined ...
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Forex: USD/JPY falls below 96.00
Thu, 2 Jul 2009 11:29:00 CDT
FXstreet.com (Córdoba) – The Yen is rising further across the board. USD/JPY is now below 96.00 and fell to 95.79 reaching a fresh intra-day low. So far today the pair is dropping 0.60% from the opening price. The Dollar started to fall after the release of the unemployment report and has continued in that trend after the opening bell in Wall Street.
According to Anna Couling, technical analyst at Master the Markets: “Yesterday's candle on the yen to dollar daily chart merely confirmed what we already know, namely that it is impossible to predict the direction for the pair at this stage. The candle indicated a day of indecision with an upper wick, a narrow body which closed marginally above all three moving average. And also affirms that “given the Japanese Yen's status a safe haven currency, the impact (of NFP) may be somewhat muted when compared to the volatility exhibited in the other majors, so this may not be a defining day for the dollar yen”.
For more information, read our latest forex news.
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Bullish Vibes Radiate From Energy Fund
Thu, 2 Jul 2009 11:07:19 CDT
07/02 Airline carrier Continental Airlines (CAL) announced Thursday that a rise in load factor and a rating upgrade have helped the company overcome another slide in pasenger traffic.
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It’s Doctors And Politics, Not The Market, That Control The Supply Of Doctors
Thu, 2 Jul 2009 11:02:31 CDT
(XLE) - Energy Select Sector SPDR - Investors were observed making bullish plays on the energy ETF today amid a modest share price rally of less than 1% to $48.17. The August 49 strike price had more than 10,000 calls purchased for an average premium of 2.09 per contract. Traders long of the calls are ...
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S&P 500 Falls Into The 875-900 Range With Sentiment Turning Sour
Thu, 2 Jul 2009 10:51:45 CDT
The marketplace doesn’t determine how many doctors the nation has, as it does for engineers, pilots and other professions. The number of doctors is a political decision, heavily influenced by doctors themselves.
And Congress also controls the supply of physicians by how much federal funding it provides for medical residencies - ...
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EUR/USD Remains Pressured As Europe/London Head Home
Thu, 2 Jul 2009 10:47:35 CDT
The S&P futures are giving way to their downtrend lines at a critical juncture after today’s data confirmed that America’s employment market isn’t improving with manufacturing and production. The futures are playing with fire again, retesting the psychological 875-900 zone as the downside takes a step up in the debate ...
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Currency Market Consolidates Throughout The U.S. Session
Thu, 2 Jul 2009 10:46:24 CDT
Overall, the currency market moved on increased volume on Thursday, as the economic calendar of the U.S. session was loaded with top tier releases. Among them, the NFP and the ECB press conference were the two most important, but so far it seems that the market has priced-in the weaker...
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New York Session Recap
Thu, 2 Jul 2009 10:44:46 CDT
It was another exciting session in NY early on as the buck extended overnight gains on unbridled risk aversion. The overnight comments from China that they did not ask the G-8 to discuss the USD reserve status at the meeting next week provided the spark and a horrendous NFP report...
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Forex: GBP/USD rises above 1.6380
Thu, 2 Jul 2009 10:23:00 CDT
FXstreet.com (Córdoba) - Cable fell after the opening bell in Wall Street to 1.6320 (fresh intra-day low) and rebounded to 1.6380. Currently the pair is testing levels above 1.6380 on an attempt to recover from early losses. The pair dropped after the release of the unemployment report. So far today GBP/USD is 0.80% below the opening price. Support on the downside, lies at 162.80.
According to Valeria Bednarik, collaborator at FXstreet.com: “Under selling pressure, pair seems unable to regain the 1.6420 zone. A descendant trend line, along with 20 SMA should cap the upside, while clear break under today’s low at 1.6330 will accelerate the downside. Bigger time frames support the perspective as daily charts are about to give bearish signals.
For more information, read our latest forex news.
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Australian Dollar: Bullish Bias Above 1215
Thu, 2 Jul 2009 10:10:13 CDT
The EURUSD has moved below the 1.4000 level as London and Europe head home. The pair is moving toward the next target support level at hte 1.3974. This is the midpoint of the move up from the June 16 low to the high reached … [visit site to read more]
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Canadian Dollar: The Bias Remains Bullish
Thu, 2 Jul 2009 10:10:12 CDT
Update on supports and resistances.
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STILL FLOUNDERING BETWEEN THE ROCK THE HARD PLACE
Thu, 2 Jul 2009 10:09:23 CDT
The pundits are shocked, shocked to learn that jobs are still being lost. But theres really nothing surprising in todays jobs report for June, released this morning by the Bureau of Labor Statistics...
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Bookkeeping: Closing Ilumina ILMN on Warning; Will Revisit Later in the Year
Thu, 2 Jul 2009 10:09:20 CDT
I only have about a 0.4 stake in Illumina ILMN so I am going to take about a 8...
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Black Gold Rally Done
Thu, 2 Jul 2009 10:08:42 CDT
A weakening dollar will keep commodity bugs aflutter but what can it mean for...
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Top Performer of the Day
Thu, 2 Jul 2009 10:07:40 CDT
The best performer for me on this overall wonderful day lottery plays notwithstanding is ERY, the triplebearish energy ETF...
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Fall from Grace
Thu, 2 Jul 2009 10:07:40 CDT
Ive got nearly 100 positions to short, but heres just one of them I think GRA looks like a delicious bearish position...
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U.S. Employment Report Creates More Waves
Thu, 2 Jul 2009 10:07:22 CDT
Update on supports and resistances.
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EUR/USD: Trading the Euro-Zone Retail Sales Report
Thu, 2 Jul 2009 10:03:16 CDT
Retail sales in the Euro-Zone is widely expected to remain subdued throughout the year, with economists forecasting consumer spending to fall 0.1% in May,...
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Another Ugly Jobs Report
Thu, 2 Jul 2009 9:58:42 CDT
The U.S. trading week is ending in completely the opposite fashion to its demure start thanks to yet another resounding number of jobs lost during the month of June. As a result of a payroll report reading 467,000 losses and 100,000 more than anticipated, the recovery theme suffered a dramatic setback. The rate of unemployment ...
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EUR/USD Reverses From Our 3rd Tier Downtrend Line
Thu, 2 Jul 2009 9:55:06 CDT
In June, the economy dropped 467,000 jobs, bringing the official (U-3) unemployment rate up to 9.5%, its highest level since the recession of the early 1980’s. In some ways this was a mirror image of the May report, which featured a relatively small decline in jobs (-322,000 revised from an original read ...
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GBP/USD Sinks After Negative Data Stream
Thu, 2 Jul 2009 9:52:02 CDT
The EUR/USD is losing yesterday’s positive momentum after employment data from both the EU and U.S. showed rising unemployment continues to be a thorn in the side of the economic recovery. The EU’s unemployment rate came in at 9.5%, two basis points above analyst expectations, while the previous release was revised ...
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Forex: USD/JPY rebounds at 95.90; back above 96.00
Thu, 2 Jul 2009 9:39:00 CDT
FXstreet.com (Córdoba) – The Dollar fell strong against the Yen after the bad unemployment report. USD/JPY reached in the last hour a fresh intra-day low at 95.91. From there the pair rebounded and found resistance at 96.20. The Dollar lost previous gains and now is 0.50% below today’s opening price trading near 96.00.
According to Valeria Bednarik, collaborator at FXstreet.com: “(USD/JPY) Falling strong, 96.00 is barely holding the downside despite indicators are close to oversold conditions in the hourly. Hourly candle opening under 95.90 or so, could trigger some bearish momentum in the pair, as bigger time frames also support further falls.”
For more information, read our latest forex news.
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Forex: EUR/USD falls 1.00% today to tests 1.4000 level
Thu, 2 Jul 2009 9:26:00 CDT
FXstreet.com (Barcelona) - EUR/USD has fallen further in the American session after rejecting from 1.4201 yesterday's high to falls 1.00% so far today to test 1.4000 level. The pair has accelerate its decline after the worse than expected June US unemployment data and it has fallen around 70 pips in the last two hours. Currently the pair is trading around 1.4000/10.
Valeria Bednarik, FXstreet.com collaborator, comments: "Bearish in the hourly, pair is holding above 1.4040 static support zone, ahead of 1.4000 psychological level. With indicators suggesting more downside pressure, expect the rally to accelerate under that level. 4 hours indicators support the perspective also."
Bednarik provides us with her levels: "Support levels: 1.4040 1.4000 1.3960. Resistance levels: 1.4090 1.4135 1.4170."
For more information, read our latest forex news.
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Guest Columnist for Steven Sears at Barrons Today
Thu, 2 Jul 2009 9:21:24 CDT
Thanks to Steven Sears at Barrons for giving me an opportunity to contribute to...
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Swiss Franc: Rebound
Thu, 2 Jul 2009 9:10:27 CDT
The major Asian/Pacific markets saw mixed results as domestic banks and commodity-related shares controlled the markets.
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Japanese Yen: Under Pressure
Thu, 2 Jul 2009 9:10:25 CDT
Update on supports and resistances.
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British Pound: Rebound Expected
Thu, 2 Jul 2009 9:10:24 CDT
Update on supports and resistances.
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Euro: Rebound Expected
Thu, 2 Jul 2009 9:10:23 CDT
Update on supports and resistances.
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Management Strategies For A Jobless Recovery
Thu, 2 Jul 2009 9:04:55 CDT
Update on supports and resistances.
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US May Factory Orders up 1.2%
Thu, 2 Jul 2009 9:01:16 CDT
FXstreet.com (Barcelona) For more information, read our latest forex news.
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7 Reasons Why Canada’s Dollar Will Continue To Pounce On The U.S. Dollar
Thu, 2 Jul 2009 9:00:42 CDT
You’re a manager for a mid-sized U.S. company that’s been forced to slash its work force because of the global financial crisis. And you’ve just received a new assignment: You’re to take over a key department that was hit harder than most by the layoffs.
Morale and productivity have plummeted. Your mandate: Fix ...
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Forex: NZD/USD drops from 0.6470 to 0.6275
Thu, 2 Jul 2009 8:57:00 CDT
FXstreet.com (Córdoba) – The NZD is collapsing today on weaker oil prices. Crude is falling today more than 3.5% on a worst-than-expected unemployment report. NZD/USD is falling sharply; the pair topped today at 0.6470 during the Asian session but couldn’t hold at those levels and started to fall. The pair extended losses during the European session and after the release of the non-farm payroll report collapsed in a few minutes falling to 0.6280. After the opening bell at Wall Street the pair extended it losses and dropped to 0.6275 reaching a fresh intra-day low and the lowest price in more than a week. On the downside, support lies at 0.6230 (June 16 low).
For more information, read our latest forex news.
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Wall Street collapses on Unemployment data; Dollar rises on risk aversion
Thu, 2 Jul 2009 8:54:00 CDT
FXstreet.com (Barcelona) - US stocks market have opening down after the worse than expected Unemployment and non-farm payrolls June data. Data suggests that companies are cutting hours and reducing payments. Dollar has accelerated its today's advance across the board fueled by risk aversion on economy concern.
Down Jones is dropping 1.85% so far today S&P 500 declines 1.90% and Nasdaq is collapsing 2.15% after the opening bell. US stock index futures has declined further. Oil barrel has falling 3.15% today to trade around 67.13 and Gold is trading around 930.50, 1.15% below opening price.
US unemployment rate rose to 9.5% in June from 9.4% in May, better than 9.6% expected by market. Non-farm payrolls has declined by 467.000, worse than 375.000 decreases expected. May data was 345.000 drop in non-farm employment.
Average hourly earning hasn't risen between May and June, despite 0.2% increases expected by market. Yearly basis, data rose 2.7%, lower that 2.9% expected by markets and well below of 3.0% increases posted in May.
EUR/USD is trading 0.85% lower than opening price, posting 1.4010 as intra-day low- GBP/USD falls 0.95% so far today to trade close to 1.6340, USD/JPY has fallen to post 95.93 as intra-day low, currently is trading 0.45% lower than opening price.
Nick Nasad, analyst at CMS, comments in the FXstreet.com ECB Rates Decision & NFP Release Live Coverage: "The data shows that the outlook that some economists had, and which led to the consensus forecast was too optimistic, and that the labor market in the US will continue to drag down growth, that spells trouble for the biggest economy, which will radiate out to the global economy."
According to Kathy Lien, Director of Currency Research at GFT, Non-Farm Payrolls Still Following 1980s Trajectory: "A total of 467k Americans lost their jobs in the month of June, driving the unemployment rate to a fresh quarter century high of 9.5 percent. The jobless rate was better than the market expected but the total number of job losses was worse. The dollar rallied after NFPs on the fear that the trend of larger job losses is returning. However after the dramatic improvement in May, it is natural to see an increase in job losses especially with layoffs at GM and Chrysler. Government jobs were also cut by 52k which means that private sector payroll reductions represented only 415k jobs. What does concern us is the flat growth in average hourly earnings and the decline in weekly hours because it suggests that companies are cutting hours and reducing pay."
For more information, read our latest forex news.
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Forex Fundamental Outlook
Thu, 2 Jul 2009 8:48:27 CDT
The common currency gaved back most of yesterday's gains ahead of the long holiday weekend in the U.S. As expected, the European Central Bank kept monetary policy unchanged and ECB President Trichet reported interest rates remain "appropriate." Trichet also said recent economic data indicate the global economy has reached an...
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Forex: AUD/USD tumbles after bad employment data
Thu, 2 Jul 2009 8:40:00 CDT
FXstreet.com (Córdoba) – The Aussie fell sharply after the release of the non-farm payroll report. AUD/USD tumbled from 0.8025 to 0.7965 in a few minutes. The pair is back below 0.7950 for the first time since June 25. Currently is testing levels below 0.7960 and reached an intra-day low at 0.7956. On the downside, support lies at 0.7925 (June 24 low) and below at 0.7870.
The Australian Dollar weakened after the jobs report in the U.S. and also the fall in the price of gold, which now is below $930 an ounce.
Nick Nasad, analyst at CMS, comments in the FXstreet.com ECB Rates Decision & NFP Release Live Coverage: "The data shows that the outlook that some economists had, and which led to the consensus forecast was too optimistic, and that the labor market in the US will continue to drag down growth, that spells trouble for the biggest economy, which will radiate out to the global economy."
For more information, read our latest forex news.
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Natural Gas To Europe - The Great Game 2009
Thu, 2 Jul 2009 8:15:33 CDT
There are many dynamics working against the dollar and for the Canadian dollar. I don’t claim that these are the ONLY reasons but I do believe that they are very important dynamics that are all collectively working at the same time to bring down the USD/CAD currency pair.
So let’s take a moment to discuss each ...
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EUR/USD Remains Supported At The 200 Hour Moving Average
Thu, 2 Jul 2009 8:13:01 CDT
Europe needs gas, of which there is no shortage. Although LNG brings welcome diversity, pipeline gas costs less, and Russia has the biggest reserves of the lot. But Russia is a bit strapped right now, as CU pointed out on Monday.
Ordinarily there would be a number of sensible ways around this ...
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Forex: USD/CAD jumps to post 1.1574 as intra-day high
Thu, 2 Jul 2009 8:13:00 CDT
FXstreet.com (Barcelona) - After testing 1.1540 resistance during the European session, USD/CAD has needed the bad US employment data to break it and post a fresh daily high at 1.1574. Currently the pair is trading around 1.1550/60, 0.60% above today's opening price action.
USD/CAD has continued, thus, its recovery from 1.1439, yesterday and 1-week low.
US unemployment rate rose to 9.5% in June from 9.4% in May, better than 9.6% expected by market. Non-farm payrolls has declined by 467.000, worse than 375.000 decreases expected. May data was 345.000 drop in non-farm employment.
Nick Nasad, analyst at CMS, comments in the FXstreet.com ECB Rates Decision & NFP Release Live Coverage: "The data shows that the outlook that some economists had, and which led to the consensus forecast was too optimistic, and that the labor market in the US will continue to drag down growth, that spells trouble for the biggest economy, which will radiate out to the global economy."
According to Kathy Lien, Director of Currency Research at GFT, Non-Farm Payrolls Still Following 1980s Trajectory: "A total of 467k Americans lost their jobs in the month of June, driving the unemployment rate to a fresh quarter century high of 9.5 percent. The jobless rate was better than the market expected but the total number of job losses was worse. The dollar rallied after NFPs on the fear that the trend of larger job losses is returning. However after the dramatic improvement in May, it is natural to see an increase in job losses especially with layoffs at GM and Chrysler. Government jobs were also cut by 52k which means that private sector payroll reductions represented only 415k jobs. What does concern us is the flat growth in average hourly earnings and the decline in weekly hours because it suggests that companies are cutting hours and reducing pay. "
For more information, read our latest forex news.
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Forex: USD/CHF pulls back to 1.0830 after NFP
Thu, 2 Jul 2009 8:11:00 CDT
FXstreet.com (Córdoba) – The Swiss Franc rose slightly after the release of bad unemployment data. USD/CHF current price at 1.0825/35 is near the levels it had before the news. The pair topped at 1.0866, seconds after the important report reaching a fresh intra-day high, but it was rejected from those levels and pulled buck to the actual price. On the downside support lies at 1.0820 and 1.0790. Despite recent corrections, the pair is still up for the day and has risen 0.75% from the opening price.
After NFP the Swissy rose against EUR and GBP but fell sharply to the JPY. EUR/CHF rebounded at 1.5250 and now is heading toward the support zone at 1.5200. GBP/CHF fell from 1.7812 to 1.7720 after the employment report. Now the pair is pulling back and trades at 1.7740/50; 50 pips above today’s opening price.
Nick Nasad, analyst at CMS, comments in the FXstreet.com ECB Rates Decision & NFP Release Live Coverage: "The data shows that the outlook that some economists had, and which led to the consensus forecast was too optimistic, and that the labor market in the US will continue to drag down growth, that spells trouble for the biggest economy, which will radiate out to the global economy."
For more information, read our latest forex news.
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Video: 07/02 Government Steps In To Help Homeowners
Thu, 2 Jul 2009 8:00:00 CDT
Bargain Growth aka Growth at a Reasonable Price (GARP)
Companies 11 through 20 are categorized as stalwarts or companies that can consistently create growth. This is the Peter Lynch style section of the portfolio.
Another Lynch precept is to invest only in companies with debt-to-equity ratios below 0.33. That requirement eliminated three of our ...
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Buying Has Dried Up On Euro And Pound
Thu, 2 Jul 2009 7:57:52 CDT
The EURUSD fell initially off the worse than expected job report as safe haven flow idea spurred on the dollar buying. The price tested the 200 hour MA support at the 1.4023 level, but after reaching a low of 1.4014, the price rebounded. The level will be watched going forward.
The 100 bar ...
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US Job Picture Weaker Than Expected
Thu, 2 Jul 2009 7:54:06 CDT
Despite taking out the June 11th top at 1.4166 yesterday, the September Euro did not accelerate to the upside and even failed to close above this price. Traders would not chase this market higher ahead of today’s European Central Bank announcement and the U.S. Non-Farm Payroll Report.
Like the September British Pound earlier ...
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Forex: USD/JPY drops below 96.50 after unemployment data
Thu, 2 Jul 2009 7:54:00 CDT
FXstreet.com (Barcelona) - USD/JPY has reached intra-day high and low in the minutes after the unemployment and non-farm payrrols data were released today. The pair jumped quickly to 96.88, daily high, to falls strongly in the following minutes. Currently the pair has fallen below to 96.50 to post 96.22 as intra-day low in its way toward 96.00 level.
Nick Nasad, analyst at CMS, comments in the FXstreet.com ECB Rates Decision & NFP Release Live Coverage: "The data shows that the outlook that some economists had, and which led to the consensus forecast was too optimistic, and that the labor market in the US will continue to drag down growth, that spells trouble for the biggest economy, which will radiate out to the global economy."
For more information, read our latest forex news.
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ADP Report Weakens Dollar Ahead Of U.S. Non-Farm Payroll Number
Thu, 2 Jul 2009 7:52:19 CDT
NFP -467K
US Unemployment Rate lower than expectation at 9.5% vs 9.6% expected
Manufacturing -136K
Government lost -52K
Professional and Business lost -118K after losing just -48 last month, Temporary workers fell by -37K
Construction fell by -79K vs -48K last month.
Trade, Transportation and Utilities fell by -51. Retail Jobs lost -21K vs -17K last month
Health ...
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Forex: GBP/USD falls to 1.6350 after NFP
Thu, 2 Jul 2009 7:47:00 CDT
FXstreet.com (Córdoba) – The Cable fell after the Labor Department in the U.S. reported that 467,000 jobs where destroy last month. GBP/USD topped 1.6425 before the release and minutes after the pair is testing 1.6350. The Pound is losing previous gains. The next support lies at 1.6325 (intra-day low).
Cable is collapsing against the Yen. GBP/JPY fell from 159.00 to 157.60 (lowest level in two days) in a few minutes after the jobs report. To the Euro, the Pound is stronger. EUR/GBP fell to 0.8550 from a 3-week high at 0.8625 after the ECB decision and NFP.
For more information, read our latest forex news.
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Forex: EUR/USD test 1.4020 support after bad unemployment data
Thu, 2 Jul 2009 7:46:00 CDT
FXstreet.com (Barcelona) - EUR/USD has reacted down to the June US unemployment data and the pair is collapsing around 60 pips to post 1.4015 has fresh intra-day low. Currently the pair is trading around 1.4015/25, posting 0.90% daily losses from opening price action.
US unemployment rate rose to 9.5% in June from 9.4% in May, better than 9.6% expected by market. Non-farm payrolls has declined by 467.000, worse than 375.000 decreases expected. May data was 345.000 drop in non-farm employment.
For more information, read our latest forex news.
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US Initial Jobless Claims down to 614K; Continuing to 6702K
Thu, 2 Jul 2009 7:34:15 CDT
FXstreet.com (Barcelona) For more information, read our latest forex news.
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US Jun Unemployment Rate increases to 9.5%
Thu, 2 Jul 2009 7:32:39 CDT
FXstreet.com (Barcelona) For more information, read our latest forex news.
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US Jun Nonfarm Payrolls plunge by 467K
Thu, 2 Jul 2009 7:30:25 CDT
FXstreet.com (Barcelona) For more information, read our latest forex news.
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Forex: GBP/USD rises above 1.6400 ahead NFP
Thu, 2 Jul 2009 7:29:00 CDT
FXstreet.com (Barcelona) - After rebounding at 1.6330, Cable has risen further to levels above 1.6400 ahead the US Unemployment data. Currently the pair is trading around 1.6405/15, 0.50% below opening price.
For more information, read our latest forex news.
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Forex: USD/JPY reaches 96.87 fresh intra-day high
Thu, 2 Jul 2009 7:29:00 CDT
FXstreet.com (Córdoba) – USD/JPY broke above 96.70 and rose to 96.87 reaching a fresh intra-day high. The Dollar was able to recover previous losses and now the pair is up 0.28% from the opening price. This happens after the ECB interest rate decision. In a few minutes in the U.S. the number of non-farm payrolls will come out.
According to the Swiss e Trade Strategy Team: “A slight recovery of the dollar against the yen emerged in Asian trading, which is continuing right now in the European morning. Currently trading at 96.65 in low volatility, we expect this recovery to come to a halt at the 96.90 mark today”.
For more information, read our latest forex news.
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Jobs Data Disappoints Green Shooters
Thu, 2 Jul 2009 7:19:52 CDT
The chart above shows the recent trend in the jobs data...
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Forex: EUR/USD continues falling after ECB rate decision
Thu, 2 Jul 2009 7:15:00 CDT
FXstreet.com (Barcelona) - The EUR/USD's rejection from 1.4045, today's low, has been capped after the ECB announcement and the pair has resume its previous down movement and it has fallen below to 1.4050 again. Currently the EUR/USD is trading around 1.4045/55, 0.70% below today's opening price.
ECB has decided to leaves its interest rate unchanged at 1.0%, in line of expectations.
Anna Coulling, analyst at Master The Markets, comments: "The Euro received two significant boosts yesterday which at one point resulted in the EUR/USD touching 1.42. The first salvo was yet anti-dollar rhetoric from Fed Member Yellen clearly stating the necessity and desire to keep interest rates low - indeed he even went so far as to say: "we should want to do more. If we were not at zero, we would be lowering the funds rate" Next the Chinese weighed in with comments surrounding the reserve status of the US Dollar and their wish to have this topic included in next week's G8 summit in Italy."
For more information, read our latest forex news.
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ECB to Hold Rates Steady for Some Time
Thu, 2 Jul 2009 7:01:09 CDT
Today's decision by the European Central Bank to leave its key policy interest rates unchanged was universally expected. That is not to say that the policy outlook is completely clear cut. Today's surprise rate cut by the Swedish Riksbank and growing expectations that the Bank of England may step up...
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Employment And Growth Questioned After NFP Bloodbath
Thu, 2 Jul 2009 6:50:43 CDT
Once again the U.S. monthly employment condition caught the markets, or specifically the analysts, out in regard to the negative numbers that were reported in the Non-farm payroll, initial jobless, and unemployment rate detail. The Trough part of the global business cycle takes a while to get out of, and...
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ECB Interest Rate Decision remains at 1%
Thu, 2 Jul 2009 6:45:30 CDT
FXstreet.com (Barcelona) For more information, read our latest forex news.
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Current Stock Market Rally Based On Short-Term, Speculative Bets
Thu, 2 Jul 2009 6:34:02 CDT
The U.S. Dollar felt pressure overnight on Tuesday because of stronger Asian and European stock markets and struggled even more after the release of the ADP Employment Services Report.
The move into equities triggered more demand for higher yielding assets and kept pressure on the low yielding U.S. Dollar. The move was a surprise because of ...
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Investment News Briefs: Gold Above $940, AIG Shares Plummet, Ford, GM
Thu, 2 Jul 2009 6:27:59 CDT
Through its rhetoric and actions, the Obama Administration has made it clear that no matter the current or future costs, the federal government will not allow a collapse of the banking system. The resulting aura of certitude has, in turn, encouraged investors to roll the dice one more time. Some of these investors are likely ...
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If you dont like stops you are in the wrong place
Thu, 2 Jul 2009 6:20:23 CDT
Stops are a good thing they help you from being wiped out on one silly llittlemove. TTheyalso say you from being stuck in a ppositionthat you know you should not be in but are so mad now that you refuse to cut it lose...
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Dollar vs Interest Rates vs Gold
Thu, 2 Jul 2009 5:39:35 CDT
Ive been getting a lot of questions about correlations in other markets so tonight lets take a look at gold, the dollar and interest rates. Sometimes these three move well together and other times its a mixed bag...
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MrSwing Lite Swing Trading Picks 07022009
Thu, 2 Jul 2009 5:35:08 CDT
Some Potential Swing Trading Opportunities for today...
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Markets Still Watching the Wrong Thing
Thu, 2 Jul 2009 5:15:22 CDT
For much of 2H 2007 and through 1H 2008 it was obvious to many, myself too, that market participants were ignoring credit market signals
blowing out of credit spreads, downgrades of RMBS, CDOs and spiking CDS on all sorts of securities. Remember the stock market put in a record high in...
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No rebound for autos
Thu, 2 Jul 2009 5:14:04 CDT
Autos are worth watching as one sector where economic growth could resume first...
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Stock Market Commentary: Indecision
Thu, 2 Jul 2009 5:13:48 CDT
The last few days have seen some tight trading with doji or small real bodied...
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HighLow
Thu, 2 Jul 2009 5:12:47 CDT
Not exactly an electrifying day, was it Im very lightly positioned right now...
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Risk Aversion Boosts Demand for the Dollar after Worse-Than-Expected Payroll Number
Thu, 2 Jul 2009 5:10:14 CDT
The dollar strengthened across the board as the worse-than-expected non-farm payroll number prompted traders to steer away from high-yields. The EurUsd continues its losing streak thanks to the dollar strength, dipped 160pips from yesterdays high to 1.40 as downward momentum was represented by declining RSI. The GbpUsd fell 100pips and...
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Forex: GBP/USD finds support at 1.6330, back above 1.6350
Thu, 2 Jul 2009 5:08:00 CDT
FXstreet.com (Barcelona) - GBP/USD has finally found support at 1.6330 after falling around 170 pips from 1.6501 in the early Asian session. currently Cable is trading above 1.6350, around 1.6360/70 and posting 0.80% daily declines from opening price action.
George Clement, analyst at Swiss e Trade, comments: "Cable fell further after a weak Asian session in this European morning and is currently trading around 1.6350, just testing a longer-term support zone. We expect this zone to hold in today’s trading and see some recovery potential up to the 1.6450 mark."
For more information, read our latest forex news.
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Forex: EUR/USD tests 1.4080 after capping recovery at 1.4110
Thu, 2 Jul 2009 5:01:00 CDT
FXstreet.com (Barcelona) - After falling around 120 pips from 1.4201 to post 1.4081 as intra-day low and attempting to recover above 1.4100, EUR/USD has fallen again to test 1.4080 support. Currently the pair is trading around 1.4085/95, 0.40% below today's opening price action.
George Clement, analyst at Swiss e Trade AG, doesn't expect too much movement today's: "The pair was in retreat in all of early European trading and is currently priced at 1.4090. We see some recovery potential today, but not beyond yesterday’s levels around 1.4190."
For more information, read our latest forex news.
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Indian Sensex Up 13.02 Points As Economic Survey Fails To Enthuse
Thu, 2 Jul 2009 4:58:45 CDT
Airbus Parent Wins Saudi Security Contract; Automakers Post Losses; Private Sector Payrolls Shrink by 473,000; Gannett to Lay Off at Least 1,000; Pending Home Sales Rise, Mortgages Fall; Gold Breaks $940 Barrier; SEC Approves “Say-on-Pay” Rules; AIG Shares Drop After Split
Pan-European aerospace and defense giant EADS NV - the parent company ...
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US: Employment Report Disappoints
Thu, 2 Jul 2009 4:37:29 CDT
The US employment report for June showed a larger than expected decline in employment. Although some of this was due to the unwinding of temporary census-related hires by the federal government, subtracting these 49K still leaves the overall report a disappointment. Net revisions to April and May amount to a...
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Afternoon Forex Overview
Thu, 2 Jul 2009 4:33:34 CDT
The yen and dollar are down against riskier rivals Friday morning after market sentiment picked up on stronger crude and equities. However, trading has been volatile and largely range bound, indicative of the market's uncertainty ahead of next week's Federal Open Market Committee meeting. The euro's overnight gains are slipping...
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U.S. Market Update
Thu, 2 Jul 2009 4:22:13 CDT
The USD continued its modest recovery as the holiday-shortened week drew to a close. Officials downplaying the reserve currency topic at next week's G8 summit initially aided the USD. Following the US payroll data, the risk aversion theme crept back into the overall sentiment and further favored the USD. EUR/USD...
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ECB: Steady as She Goes
Thu, 2 Jul 2009 4:20:58 CDT
As expected, the ECB left interest rates unchanged in July at 1.00% and provided very few changes to their outlook for inflation and the Eurozone economy. The only notable change in language was the downgrading of inflationary pressures from moderate to low. Outside of this, the ECB continues to see...
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ECB Press Conference Analysis
Thu, 2 Jul 2009 4:15:36 CDT
At the ECB press conference, held after the announcement to hold the minimum bid rate at 1%, as expected, Mr. Trichet re-iterated on Thursday the same messages as in the last few press conferences. The euro-area economy is going through a contraction period, which is likely to continue for the...
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The ECB Continues Supporting the Economy
Thu, 2 Jul 2009 4:11:59 CDT
The data released in the second quarter of the current year were better than those released in the first quarter when the economy witnessed the worst economic recession since WWII. The ECB today left the interest rate unchanged at 1% as they see it suitable for this phase. However, there...
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Euro Zone May PPI down by 0.2% MoM and 5.8% YoY
Thu, 2 Jul 2009 4:02:17 CDT
FXstreet.com (Barcelona) For more information, read our latest forex news.
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EU May Unemployment Rate rises more than expected to 9.5%
Thu, 2 Jul 2009 4:00:26 CDT
FXstreet.com (Barcelona) For more information, read our latest forex news.
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Bernie Madoff Prevention - How To Research Your Advisor
Thu, 2 Jul 2009 3:59:37 CDT
Sensex rose 13.02 points or 0.1 to 14658.59.
Nifty rose 7.95 points or 0.2% to 4348.85.
Mid Cap index rose 0.3%. Small Cap rose 0.7%.
BSE 500 was up 0.2%. Sensex gainers: 15
Of 13 BSE Sectoral indices, 8 posted gains.
Advancers: 1459, Decliners: 1141, Unchanged: 92
Advance/Decline ratio: 7:6
Sensex Day’s Range: 14764.35 - 14469.69
Nifty Day’s Range: ...
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US Non-Farm Payroll Fireworks Today
Thu, 2 Jul 2009 3:52:11 CDT
Notorious Ponzi scammer Bernie Madoff has been sentenced to the maximum 150 years in prison for the $65 billion fraud that swindled his many devastated victims.
Judge Denny Chin said the sentence was a symbolic one for a crime that showed “extraordinary evil” and “took a staggering human toll.”
Many investors have followed the ...
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Forex: USD/CHF rises above 1.0800 on recovery path
Thu, 2 Jul 2009 3:42:00 CDT
FXstreet.com (Barcelona) - The USD/CHF's recovery from 1.0707, 1 week low reached yesterday, has continued further in the European session to trade above 1.0800 level and post 1.0826 as fresh intra-day high. Currently the pair is trading around 1.0800/10, 0.55% higher than opening price action.
Igor Kulaga, analyst at Forex Ltd, comments: "The pre-planned break-out variant for sales has been implemented with achievement of minimal anticipated target. OsMA trend indicator, having marked relative bearish activity rise at break-out key support level as a sign of rate fall incompleteness argues for sales priority for planning priority choice for today. Hence and considering upside indicator trend we can assume probability of rate return to close 1,0780/1,0800 resistance range levels, where it is recommended to evaluate the development of the activity of both parties in accordance with the charts of a shorter time interval."
For more information, read our latest forex news.
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U.S. Employment Report Creates More Waves
Thu, 2 Jul 2009 3:40:14 CDT
The U.S. trading week is ending in completely the opposite fashion to its demure start thanks to yet another resounding number of jobs lost during the month of June. As a result of a payroll report reading 467,000 losses and 100,000 more than anticipated, the recovery theme suffered a dramatic...
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ECB Meeting: No New Weapons on the Battlefield
Thu, 2 Jul 2009 3:36:14 CDT
The refinancing rate was unchanged at 1.0% as expected. Trichet did not signal that further rate cuts are in the pipeline, although he did again say that the governing council had not decided that 1% is the lowest level. With inflation in negative territory and low money growth it could...
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UK Jun Construction PMI down to 44.5 from 45.9
Thu, 2 Jul 2009 3:34:40 CDT
FXstreet.com (Barcelona) For more information, read our latest forex news.
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Non-Farm Payrolls Prop up USD
Thu, 2 Jul 2009 3:30:19 CDT
The greenback strengthened against the majors following the highly anticipated June jobs report, pushing the euro toward the 1.40-figure and the sterling to 1.6330. The US equity bourses fell sharply, with the Dow Jones, S&P 500 and Nasdaq all lower by over 2% in morning trading.
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Forex: GBP/USD collapses to post 1.6330 as fresh 1-week low
Thu, 2 Jul 2009 3:29:00 CDT
FXstreet.com (Barcelona) - GBP/USD has fallen further in the European session after falling from 1.6500 level in Asian session. Cable has dropped 130 pips in the last hour from 1.6460 (MA200 hourly chart) to post 1.6330 as fresh 1-week low. Currently the pair is trading around 1.6330/40, posting 1.00% daily declines from opening price action.
Nicole Elliott, senior analyst at Mizuho Corporate Bank, recommends attempt small longs below 1.6440: "Taking a back seat as other currencies come to the fore. A weekly close clearly above 1.6500 should add to current strong bullish momentum. Strategy: Attempt small longs at 1.6440; stop below 1.6175. First target 1.6550/1.6600."
For more information, read our latest forex news.
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Unemployment Continue to Rise in the United States as Companies Layoff 467K Employees in June!!!
Thu, 2 Jul 2009 3:18:32 CDT
The U.S. labor market continue to suffer from great weakness, as rising unemployment continue to undermine economic growth in the world's largest economy, in addition to tightened credit conditions, and diminishing wealth, as all continue to weigh down on consumer spending which account for nearly 2/3 of economic activity in...
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Forex: USD/JPY rises to test 96.80
Thu, 2 Jul 2009 3:15:00 CDT
FXstreet.com (Barcelona) - After trading in a small range between 96.50 and 96.70 during the Asian session, USD/JPY has accelerate its pace to climb 30 pips to test 96.80 in the early European morning. Currently the pair is trading around 96.70/80, rising 0.20% so far today.
Igor Kulaga, analyst at Forex Ltd, comments: "The estimated test of key supports has been confirmed, but relative bearish activity rise marked by OsMA trend indicator did not favor implementation of pre-planned buying positions. Hence and considering close activity parity of both parties as a sign of probable range rate and considering bearish activity rise as sign of rate fall incompleteness, we can assume probability of rate return to close 96,10/20 supports, where it is recommended to evaluate the development of the activity of both parties in accordance with the charts of a shorter time interval."
For more information, read our latest forex news.
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2009 Top 40 Best Stocks To Retire On: Part 2
Thu, 2 Jul 2009 3:10:08 CDT
Although it’s only Thursday and the Fourth of July is still two days away, there is potential for an early set of fireworks today. While this afternoon’s ECB meeting may be somewhat less interesting than usual, tomorrow’s US holiday has pushed the release of non-farm payroll data forward to today.
And you ...
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Bigger-than-Expected Drop in U.S. Payroll Employment in June
Thu, 2 Jul 2009 3:03:26 CDT
Payroll employment fell 467,000 in June, a bigger slide relative to the 365,000 drop expected within financial markets going into the report. This was up from May's surprisingly small drop of 322,000 (revised from the previously estimated -345,000) although still down from April's decline of 519,000. The household survey contained...
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US Employment Report a Slightly Disappointing Mixed Bag
Thu, 2 Jul 2009 2:46:23 CDT
The US employment report showed a negative surprise approximately in-line with the negative surprise in the ADP number yesterday. Some positive spin can be induced from the unemployment rate, which only rose 0.1% to 9.5%, which should get plenty of attention from the "second derivative crowd". This is the smallest...
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Dollar Reserve Issues Continue
Thu, 2 Jul 2009 2:42:53 CDT
The dollar will remain very sensitive to issues of global reserve management and evidence of a move away from the US currency would continue to unsettle the US currency, especially if there are further negative comments. There is, however, little incentive for any of the key major global players to...
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Forex: GBP/USD falls 0.60% to test yesterday low at 1.6385
Thu, 2 Jul 2009 2:26:00 CDT
FXstreet.com (Barcelona) - After rejecting at 1.6545 in the early yesterday's American session and falling below 1.6500 to trade in a small range between 1.6460 and 1.6500 in the late session, GBP/USD has begun to fall in the Asian session from 1.6500 to break below 1.6400, test 1.6385 and post 1.6380 as intra-week low. Currently the pair is trading around 1.6390/1.6400, 0.60% below today's opening price.
Nicole Elliott, Senior analyst at Mizuho Corporate Bank, recommends small longs at 1.6440: "Taking a back seat as other currencies come to the fore. A weekly close clearly above 1.6500 should add to current strong bullish momentum. Strategy: Attempt small longs at 1.6440; stop below 1.6175. First target 1.6550/1.6600."
For more information, read our latest forex news.
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Forex: EUR/USD falls below 1.4100
Thu, 2 Jul 2009 2:14:00 CDT
FXstreet.com (Barcelona) - The EUR/USD's rejection from 1.4201, yesterday high, has continued further today's Asian session and currently the pair has declining 0.40% from opening price to trade below th 1.4100 and post 1.4085 as intra-day low. Currently the pair is trading around 1.4090/1.4100.
Carol Harmer, analyst at Charmer Charts.com, comments: "You would then find the 1.4020/00 support coming under attack and buyers will show solidarity and stand fast at these lows., They should be able to manage to drive this higher, as the short term charts are obviously oversold after yesterdays move. Now if 1.4085/80 holds there is scope once more for the 1.4180/1.4200 resistance to be tested. Sellers will command respect at these highs and only a determined effort by the buyers will break their resolve. If buyers manage to break above 1.4200 look for 1.4250/70 as your immediate attraction."
For more information, read our latest forex news.
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Video: 07/02 Pre Market: Non Farm Payrolls
Thu, 2 Jul 2009 2:00:00 CDT
Wheat - was down for the third day in a row on favorable weather and carry over supply concerns from yesterday. July futures were down 5 cents to $5.0625 a bushel and September was down 5.25 cents to $5.3540.
Corn - rebounded today after a lock limit down day yesterday. Prices for ...
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Asian Markets mixed on commodities; Dollar advances after He Yafei words
Thu, 2 Jul 2009 1:46:00 CDT
FXstreet.com (Barcelona) - Asian stocks are mixing red and green numbers today's Thursday session on commodities as China has sparked optimism on economic growth forecast. Asia is, thus, looking for follow higher yesterday's Wall Street close. Dollar is higher today after its major rivals, focusing today's key data as unemployment data and ECB meeting.
S&P 500 Asia regional index is rising 0.60% so far today, MSCI Asia Apex 50 advances 0.69%, Hang Seng posts 0.96% increases, S&P/ASX 200 is 0.09% higher today. On the other hand, Nikkei is declining 0.64% today's session, Kospi index slides 0.01% and the NZX 50 Index drop 0.45% so far today.
On the Economic indicators field, May Trade balance in Australia has post a 556 million of deficit, worst than 125 million deficit expected. ANZ commodities prices in New Zealand has risen 0.2% in June, slower pace than 2.7% increases in May. In japan, yearly monetary base has increased 6.4%, less than 8.1% growth expected.
Dollar rises on China's comments
Dollar is higher today after the He Yafei comments that Dollar will remain stable easing concerns about its reserve status and that PBOC is not aware about discuss a new reserve currency plans in G8 meeting next week.
EUR/USD has dropped 0.25% today to tests 1.4100 level, after rejecting from 1.4200. GBP/USD has fallen below 1.6450 to trade close to 1.6400 after declining 0.50% so far today.
USD/CHF recovering from 1.0705, 1-week low, and it is rising 0.25% so far today to test 1.0880 level. USD/JPY is recovering from lows too, it has risen from 96.26 to trade 0.15% higher from opening price to the current 96.60/70.
For more information, read our latest forex news.
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Market CommentaryJuly 2
Wed, 1 Jul 2009 23:47:22 CDT
U.S. stocks rose on Wednesday, the start of the third quarter, as reassuring manufacturing data from China, Europe and the United States reinforced hopes that the worlds economy is on the road to recovery. The current quarter started on a slightly positive note, after the previous quarter logged up high gains...
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Stock Picks For Thursday: Continental Airlines And UAL Corporation
Wed, 1 Jul 2009 23:40:12 CDT
The government is vamping up programs to help struggling homeowners who's property has lost value drastically.
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Yen broke under 20 SMA
Wed, 1 Jul 2009 23:13:00 CDT
FXstreet.com (Buenos Aires) – USD/JPY Current Price 96.42. Slightly bearish in the hourly, pair broke under 20 SMA turning the slope to the downside in the hourly, while momentum support a retest of the 96.00 level.
“If pair manages to hold above that zone, a retest of the 97.00/97.20 level seems likely, while confirmations under that zone, will send the pair lower in the next sessions, with increasing chances of reaching the 94.60 zone,” said Valeria Bednarik, collaborator at FXstreet.com.
Support levels: 96.20 95.80 95.50. Resistance levels: 96.80 97.15 97.50
For more information, read our latest forex news.
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Need An Income Investment? Keep Dumping GE And Buy This Stock Instead
Wed, 1 Jul 2009 23:06:26 CDT
Chart courtesy of www.stockcharts.com ( click to enlarge )
United Airlines (UAUA) - The technical daily chart above shows that it is still to early to say that the downtrend has ended. The stock seems to have a remarkable support around the $3 mark, however it’s better to stay at the sideline. Only ...
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Uncle Sam Just Winked At Citi’s Credit Card Rate Increase
Wed, 1 Jul 2009 23:04:12 CDT
Back in January, I advised you to dump everyone’s sweetheart dividend stock, General Electric (GE) in favor of TEPPCO Partners (TPP).
Many balked at the idea. But the results don’t lie…
Year-to-date, General Electric is the worst-performing stock in the Dow, down 22.3%. Meanwhile, TEPPCO is up 69%, including dividends.
Of course, part of the ...
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Sterling’s range keeps getting thinner
Wed, 1 Jul 2009 22:03:00 CDT
FXstreet.com (Buenos Aires) – GBP/USD Current price: 1.6496. Range keeps getting thinner in the pair, as negative Gbp outlook fight general risk appetite sentiment. Quoting just under the 1.6500 level, hourly indicators don’t offer a clear bias, while 20 SMA supports the downside and start to turn bullish.
“Break above 1.6560 needs to be confirmed to see the pair gaining some upside momentum,” said Valeria Bednarik, collaborator at FXstreet.com.
Support levels: 1.6470 1.6430 1.6400. Resistance levels: 1.6520 1.6560 1.6600
For more information, read our latest forex news.
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Vietnam Economy Continues To Rebound, Boasts Best Performing Asian Stock Index
Wed, 1 Jul 2009 21:40:06 CDT
Did Citigroup (C) just pull a fast one?
An issue impacting more Americans than their monthly mortgage payment is their monthly credit card payment. Obama has proposed legislation to limit banks’ ability to increase these rates. That legislation is not scheduled to be implemented until 2010.
In the interim, Obama is working on implementing ...
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India’s Foreign Currency Reserve Moves Up
Wed, 1 Jul 2009 21:35:09 CDT
While it’s not quite the economic force that China is, Vietnam’s economy grew by 4.5% year-over-year in the second quarter and the nation’s stock market rallied 60%, making it the best performer in Asia.
The national Statistics Office said yesterday (Wednesday) that Vietnam’s gross domestic product (GDP) growth accelerated to 4.5% in the ...
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Chinese, Indian Manufacturing Expands While Rest Of World Tries To Catch Up
Wed, 1 Jul 2009 21:33:36 CDT
In a recent report released by the Reserve Bank Of India (RBI), the regulatory bank stated that India’s forex reserves rose by US$ 8 million to US$ 263.652 billion for the week ended June 19, compared with US$ 263.644 billion a week ago.
Assets denominated in foreign currency increased by US$10 million to ...
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Employment Situation Report Preview
Wed, 1 Jul 2009 21:28:59 CDT
While the rest of the world shows signs of life and inches closer toward economic recovery, China appears to be ahead of the curve.
China’s Purchasing Managers Index (PMI) inched only slightly upward in June to 53.2 from 53.1 the month before, but demonstrated its resilience as it recorded its fourth consecutive month ...
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Aussie Dollar Continuing To Grind Higher
Wed, 1 Jul 2009 21:27:12 CDT
Each month we ask the question, “What change in payroll employment would be consistent with other economic data from the same time period (the middle of the prior month)?
This is not a forecast, per se, since we do not posit any causal relationship among these variables. They are all concomitant indicators of ...
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Commodity Night Cap: Gold, Silver, Industrial Metals And Oil Rally Strongly
Wed, 1 Jul 2009 21:25:49 CDT
After an awful final reading for the backdated May Trade Balance (-556M vs -125m,) the initial dip of the AUD was unsustainable and the currency quickly rebounded against the USD and JPY to levels they were trading at prior to the release. Looking at the AUD/JPY trendline we’ve been examining, we see ...
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Video: 07/01 Oil Prices Retreat
Wed, 1 Jul 2009 20:49:40 CDT
The Baltic Dry Index, which measures the freight rates for dry cargo traveling by ship, hit an all time high of 11,793 on May 5, 2008. Then it plunged to 663 on December 5, a decline of 94.4 percent. It was as if trade was coming to a standstill. However, freight ...
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EUR/USD Current price: 1.4144
Wed, 1 Jul 2009 20:35:00 CDT
FXstreet.com (Buenos Aires) - EUR/USD Current price: 1.4144. Downside correction halted around 1.4130 zone, and the pair is regaining the upside with Nikkei opening, that as expected is following U.S. stocks good tone, approaching to 10.000 level.
“Hourly indicators have turn to the upside while a small continuation pattern in the hourly supports further rises if pair manages to break above the 1.4160 zone,” said Valeria Bednarik, collaborator at FXstreet.com.
Support levels: 1.4130 1.4100 1.4055. Resistance levels: 1.4160 1.4200 1.4235
For more information, read our latest forex news.
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The Looming Mc(Mansion) Attack
Wed, 1 Jul 2009 20:29:03 CDT
The stories,data, and stocks that may have the greatest impact during the next trading session.
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Video: 07/01 Japan’s Jobless Rate Continues To Rise
Wed, 1 Jul 2009 20:18:12 CDT
Despite another decline in oil stockpiles, crude prices contiued to slide as concerns over future energy used weighed in on the markets.
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Forex Risk Management With Technical Analysis
Wed, 1 Jul 2009 19:01:46 CDT
For many financially challenged owners of a “McMansion,” the theory of renting it out until the market comes back may not hold substance.
Consumers are still frozen under the weight of substantial debt as credit from financial institutions remains extremely tight, foreclosures and delinquencies are high, mortgage modifications have been a relative ...
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3 Single-Country ETFs You’re Not Hearing About
Wed, 1 Jul 2009 19:01:26 CDT
Some thoughts on using technical market analysis to determine risk management in forex trading. Perhaps the greatest strength of technical analysis is that it allows traders to quantify precisely, and thereby help control, the risk factors inherent in trading. The most obvious risk control application of technical analysis is stop loss placement. Technical analysis employs a ...
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Is George Soros Long Or Wrong On The Global Rebound?
Wed, 1 Jul 2009 19:01:21 CDT
It is hard to keep track of each country in the vast world of exchange traded funds (ETFs). That’s why we are here to provide some limelight for the less talked about countries. We know you’re interested.
Indonesia boosts some solid basic fundamentals including a reform minded government, an upwardly mobile population, a ...
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Will China Lead The World Out Of Recession? I Still Have My Doubts
Wed, 1 Jul 2009 19:01:13 CDT
Billionaire investor George Soros thinks the worst of the global financial crisis is behind us.
In a June 20 interview with Polish television, the Hungarian-born Soros acknowledged that this has been the most serious crisis he’s seen in his lifetime, but said, “Definitely, the worst is behind us.”
For those that like to interpret “Soros-speak,” ...
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Dollar down ahead of key events
Wed, 1 Jul 2009 19:01:00 CDT
FXstreet.com (Buenos Aires) - Dollar fell across the board after New York midday report said the Chinese had asked the G8 to debate a new reserve currency at next week’s heads of state summit. Euro reached an intraday high of 1.4201, while Gbp reached 1.6544 where both currencies halt there rallies and started a downside correction. Anyway, expect the majors to remain in ranges ahead of the ECB meeting and the US employment data to be release early tomorrow in Europe. Nikkei could trigger some risk appetite spike, following S&P and DJIA positive close early in America
For more information, read our latest forex news.
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Video: 07/01 Data May Point To A Recovery
Wed, 1 Jul 2009 18:31:33 CDT
The Japanese government announced that the nation's jobless rate rose to a five-and-a-half year high for the month of May.
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Fannie, Freddie ease terms for mortgage refinance
(Reuters)
Wed, 1 Jul 2009 16:57:34 CDT
While the USD selling eased yesterday, concerns over the long term direction are still apparent. Yesterday, the S&P climbed to a 6 month high, while 10yr Treasuries closed at 3.67% up significantly from Friday. While Credit default swaps are stable the 10yr TIP spread have widen (signaling inflation concerns), so it seems that the risk of US default is less of an issue, but higher inflation...
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AIG to sell consumer finance unit in Colombia
(AP)
Wed, 1 Jul 2009 16:10:28 CDT
Reuters - The Obama administration on Wednesday expanded its foreclosure prevention efforts to help a greater number of underwater homeowners refinance their mortgages.
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Mutual Fund Monthly
Wed, 1 Jul 2009 15:34:01 CDT
The market was flat for the month of June, with the SPX starting and ending at the...
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Hewison Gives Timely SP500 Update in New Video
Wed, 1 Jul 2009 14:34:50 CDT
Adam Hewison released on of his most descriptive video updates on the SP 500...
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USDJPY Could Rise in July
Wed, 1 Jul 2009 14:34:41 CDT
In 8 out of the past 10 years, the U.S. dollar appreciated against the Japanese Yen in the month of July...
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Outlook for NonFarm Payrolls, How to trade it
Wed, 1 Jul 2009 14:34:40 CDT
I was on Bloomberg Television earlier today talking about the outlook for nonfarm payrolls and how the dollar could react to it...
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Australian Dollar: Bullish Bias Above 1215
Wed, 1 Jul 2009 13:10:13 CDT
The latest data, from manufacturing to housing, may signal the worst of the crisis is over.
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Canadian Dollar: The Bias Remains Bullish
Wed, 1 Jul 2009 13:10:12 CDT
Update on supports and resistances.
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1st Day Of Month Tendencies
Wed, 1 Jul 2009 11:57:00 CDT
The Stock Traders Almanac noted that the Dow Has been up 16 of the last 19 years on...
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UNG Where do we stand now
Wed, 1 Jul 2009 11:56:57 CDT
To read the previous discusson on UNG, click here.It appears that we may indeed break the symmetrical triangle pattern to the downside, but lets look at the chart first....
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Market commentary for 07012009
Wed, 1 Jul 2009 11:52:22 CDT
Market commentary for 07012009...
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THE COOL WINDS OF JUNE
Wed, 1 Jul 2009 11:52:21 CDT
The weather in June was cool and rainy in the New York region, and something similar prevailed over the capital and commodity markets last month as well...
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Bookkeeping: Stopped Out of Allegiant Travel ALGT Trade this Morning
Wed, 1 Jul 2009 11:52:18 CDT
The 2.5 percent Allegiant Travel ALGT short I put on Monday stopped out at 40.05...
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NovaGold NG: Exceptional bet in mining
Wed, 1 Jul 2009 11:51:50 CDT
In the 2000s, as weve alternated between deflationary and inflationary...
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Freddie Mac gets another $6.1B from gov't
(AP)
Wed, 1 Jul 2009 10:32:43 CDT
AP - American International Group Inc. on Wednesday said it agreed to sell all of its ownership interests in its consumer finance operations in Colombia, the latest in a recent string of asset sales by the embattled insurer to bolster its finances.
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U.S. mortgage applications fall to 7-month low
(Reuters)
Wed, 1 Jul 2009 8:54:22 CDT
AP - Battered mortgage giant Freddie Mac received $6.1 billion in new funds from the Treasury Department to help offset its mounting liabilities, according to a regulatory filing submitted Wednesday.
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Fed Holds Rates Steady
(BusinessWeek Online)
Wed, 1 Jul 2009 7:08:43 CDT
BusinessWeek Online - You've got a dirty little secret. During long lunch breaks, or after work when everyone else heads home to their families, you're sneaking out to a secret rendezvous. You know what you're doing is perfectly justified, but you still feel a little bad afterwards. You never thought it would come to this. But here you are -- cheating on your financial planner.
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Thinking of Switching Financial Planners?
(BusinessWeek Online)
Wed, 1 Jul 2009 7:08:43 CDT
Reuters - U.S. mortgage applications plunged to a seven-month low last week as demand for home refinancing loans tumbled 30 percent, data from an industry group showed on Wednesday.
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Markets are on hiatus ahead of ECB rate decision and early NFP’s – will we break current ranges?
Tue, 30 Jun 2009 19:00:00 CDT
After having hit a high at 1.4201 yesterday on reports the Vice-finance minister of China wasn’t aware of his government’s request to discuss use of the IMF’s SDR as an alternative. This doesn’t come as a surprise on the part of the Chinese government as we all know they are the largest holders of foreign exchange reserves and U.S Treasuries and have been very vocal about the massive spending on...
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Administration sends Congress consumer legislation
(AP)
Tue, 30 Jun 2009 18:29:59 CDT
BusinessWeek Online - With signs the economy is improving but still fragile, Federal Reserve policymakers held the Fed funds rate steady -- at zero to 0.25% -- on June 24, and maintained its pace of purchases of government debt at mortgage-backed securities.
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Treasury OKs 3 firms for mortgage relief program
(AP)
Tue, 30 Jun 2009 16:11:41 CDT
AP - President Barack Obama asked Congress on Tuesday to create a new agency to police the fine print on credit card bills and mortgage documents and determine what fees, penalties and interest rates are fair.
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Obama admin. sets wide scope for consumer agency
(Reuters)
Tue, 30 Jun 2009 14:55:44 CDT
AP - The Treasury Department said Tuesday that it has approved three more firms for its mortgage relief program.
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Chase: 138k mortgages modified in past 3 months
(AP)
Tue, 30 Jun 2009 10:17:34 CDT
Reuters - The Obama administration sent Congress a draft bill on Tuesday to create a new agency with sweeping powers to impose tough consumer protection rules for banks, mortgage lenders and other financial firms, setting up a summer-long political brawl over the plan.
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Protesters demand mortgage help from loan firms
(AP)
Tue, 30 Jun 2009 9:51:57 CDT
AP - Chase said Tuesday it has approved 138,000 trial mortgage modifications for struggling homeowners in the past three months.
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ECB and US Non-Farm Payrolls to Set the Tone
Tue, 30 Jun 2009 0:11:34 CDT
Markets will be watching this week's economic releases closely for signs that a nascent recovery is taking hold. After last week's relatively light economic calendar, the pace picks up with a number of key releases and events, culminating in the ECB council meeting and the US Employment Report on Thursday....
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Dollar steady on lower US Consumer Confidence
Mon, 29 Jun 2009 19:00:00 CDT
The Canadian dollar fell against the U.S. currency on Tuesday as lower U.S. consumer confidence data for June dampened hopes for an early economic recovery, and pushed the market toward safer havens. Sterling reached an eight-month high against the dollar on Tuesday due to surprisingly strong UK house price data, but its gains fizzled out after a moderating decline in U.S. home prices which later...
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Weekly Technical Commentary
Mon, 29 Jun 2009 6:08:09 CDT
Somewhat to our surprise the potential 'head-and-shoulders' in which this pair has been trading since March is still valid. During June the top of the weekly Ichimoku 'cloud' limited the upside neatly and should now set up a test of the 'neckline' in the increasingly pivotal 94.00 area. This also...
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Last Call for Monetization?
Mon, 29 Jun 2009 4:21:33 CDT
In the past three weeks there have been several indications that the Federal Reserve is reconsidering the extent and perhaps necessity of its extraordinary liquidity provisions to the Treasury market. How far have the chairman and governors pulled back from their quantitative easing policy?
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All That Hype Over Nothing
Mon, 29 Jun 2009 1:17:44 CDT
News headlines flooded the markets last week with a series of events, releasing a closely watched interest rate decision and housing data, among other market movers. The major event of the week was the Fed's interest rate decision, presenting a no-change status, barely affecting the major currency pairs and the...
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Weekly Forex Signals: GBP/USD
Mon, 29 Jun 2009 1:02:18 CDT
The U.K. currency breaks previous resistance and continues its uptrend. Technically the market shows us a strong demand with some confirmation of indicators like RSI, which is above 50% level, we can see divergences on MACD and Bollinger gives us a bullish signal by closing the candle above the middle...
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US Economic Indicators Preview
Sun, 28 Jun 2009 22:50:51 CDT
Non-farm payrolls fell by 345k in May - still historically high, but much better than in the first four months, when the decline averaged 645k. As the graph shows, temporary job losses were significantly lower in May, which indicates that the pace of job cuts could have slowed again. We...
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EMU Economic Indicators Preview
Sun, 28 Jun 2009 22:44:49 CDT
The ECB Council will hold its regular monthly meeting on Thursday. The interest rate decision will be announced at 13:45hrs, the press conference is scheduled for 14:30hrs. We expect the refinancing rate to be left unchanged at 1.0%. The statement is unlikely to differ much from the one in June....
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IMM Positioning - EUR Longs At Highest Level Since Last Summer
Sun, 28 Jun 2009 21:11:05 CDT
Speculative investors added to their long EUR positions, which reached the highest level this year and the highest level since last July (when EUR/USD peaked at 1.60). EUR longs currently stand at 15 percent of open interest. However, it should be noted that the IMM data were collected the day...
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For modest earners, relief repaying student loans
(AP)
Sun, 28 Jun 2009 20:28:30 CDT
AP - Protests are planned in more than a dozen cities across the country to demand that a group of mortgage companies who benefited from federal bailout money participate in a government program designed to prevent foreclosures.
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Risk appetite creeps back into markets
Sun, 28 Jun 2009 19:00:00 CDT
The Yen slipped across the board on monday due to higher oil price, gains in share prices and a better-than-expected sentiment in the euro-zone which boosted hopes of a global recovery, helping investor risk appetite. Investors seem to feel more confident these days and risky assets are bid again. The EUR carried on the trend set in London with continued buying versus the USD, consolidating on...
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This Week's Market Outlook
Sat, 27 Jun 2009 5:33:15 CDT
The month of June has been characterized by a seemingly endless consolidation in both USD-currency pairs and in many cross-currency pairs as well, not to mention stocks and other major asset markets. Looking back, it's perhaps easiest to view the consolidation in terms of investor risk appetites and the stabilization...
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Weekly Economic and Financial Commentary
Sat, 27 Jun 2009 5:27:03 CDT
We have often noted the road to recovery would be long and arduous. The most recent batch of economic data supports that notion. Better news in one area continues to be tempered by setbacks elsewhere. This week's pleasant surprise was durable goods orders, which showed more strength and breadth than...
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The Weekly Bottom Line
Sat, 27 Jun 2009 5:13:53 CDT
U.S. economic data continued to show signs of tentative stabilization this week; but, with debate now focusing on the future exit strategy, markets should heed that whatever current buoyancy exists owes strongly to fiscal and monetary intervention. The training wheels, provided by monetary pump priming, ultimately need to come off,...
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Weekly Focus: The Tide has Turned
Sat, 27 Jun 2009 5:05:10 CDT
After two years of constant downward revisions, OECD this week delivered its first upward revision of global growth in its Economic Outlook (see table). For the US, China and Japan, growth was revised up by around one percentage point, while Euroland growth was on balance unchanged as growth was seen...
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Financial Markets Review: UK Bond Yields and Swaps Fall
Sat, 27 Jun 2009 4:37:31 CDT
Momentum in the pound has faded somewhat this week amid mixed economic data and Bank of England Governor King's concerns over the magnitude of the UK fiscal deficit. After recording a high on Monday (1.1904), £/ pulled back to close the week at 1.1738. £/$ traded the week in the...
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Australian & New Zealand Weekly: We Have Revised Our RBA View - Low Point Now 2.5%
Sat, 27 Jun 2009 4:31:10 CDT
We have revised our forecast for the employment profile and accordingly slightly adjusted our interest rate view. While we still expect that the RBA will keep rates on hold through 2010 we no longer expect that 2% will be the low point in the cycle for the cash rate. We...
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FX Briefing: Dollar Weaker after FOMC Meeting
Sat, 27 Jun 2009 4:16:20 CDT
During the course of the week, the dollar has retreated somewhat. EUR-USD rose to about 1.41, whereas, towards the end of the week, USD-JPY was around 95.50. The Swiss franc did not follow this movement, however, nor did some commodity-linked currencies such as the Norwegian krone, the Canadian and Australian...
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Weekly Market Commentary
Sat, 27 Jun 2009 4:13:08 CDT
Investors and fund managers will be wondering where to allocate assets as we enter Q3 and H2 2009. Because of Friday's US holiday, so US Non-farm Payrolls are released Thursday, and a numbers-packed week might trigger some sharp moves over the next fortnight. We still feel that top-quality long-dated fixed...
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Weekly Market Wrap-up
Fri, 26 Jun 2009 10:41:10 CDT
In currency trading, the reserve currency issue continued to be the main factor in the USD price action. The dollar tried to establish a stable, consolidating tone early in the week, but took a softer tone as word of reserve management adjustments circulated among dealing desks. Assistant Treasury Secretary Karthik...
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AIG's Alico set for Europe restructuring: letter
(Reuters)
Fri, 26 Jun 2009 10:10:18 CDT
AP - Repaying a student loan could soon be a little less painful.
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Consumer spending rebounds, supports recovery view
(Reuters)
Fri, 26 Jun 2009 9:23:13 CDT
Reuters - Freddie Mac , the second-largest U.S. home funding company, on Friday said its mortgage investment portfolio shrank by an annualized 9.9 percent rate in May, while delinquencies on loans it guarantees accelerated.
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Freddie Mac May portfolio shrank annualized 9.9 pct
(Reuters)
Fri, 26 Jun 2009 8:24:18 CDT
Reuters - AIG's American Life Insurance Company (Alico) will restructure its western European businesses in order to generate cost savings, according to an internal document obtained by Reuters.
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’09 Q2 draws to a close – risk aversion remains a pertinent theme as key players are looking to undermine the dollar’s central role.
Thu, 25 Jun 2009 19:00:00 CDT
As we draw nearer to this year’s half-way mark it is clear that reports of a V-shaped recovery back in March we’re greatly optimistic. The sheer complexity of the global economic crisis and it’s repercussions on business climate has greatly hampered the economy’s ability to right itself. The rapid cutting of interest rates, vast amounts of liquidity injections have central banks tackling...
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Mortgage rates tick up, remain above lows
(AP)
Thu, 25 Jun 2009 13:37:02 CDT
Reuters - U.S. consumer spending rose last month for the first time since February as government stimulus pushed incomes sharply higher, the Commerce Department said on Friday, supporting the view the economy was close to pulling out of recession.
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AIG to repay $25 billion U.S. debt with unit stakes
(Reuters)
Thu, 25 Jun 2009 10:45:30 CDT
AP - Rates for 30-year home loans edged up this week, remaining above record lows reached over the spring.
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EUR & GBP locked in downside consolidation
Wed, 24 Jun 2009 19:00:00 CDT
Thursday’s trading can best be described as ‘scrappy’. There was no dominant theme for traders to cling to so they were cautious and reverted to type, following equity markets moves as a signal for risk appetite and as a barometer for the Dollar. The CHF seemed to be the subject of intervention (again there was no official comment from the SNB) as, on two occasions, the Swiss Franc took a sharp...
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Fed holds policy steady, sees recession easing
(Reuters)
Wed, 24 Jun 2009 17:52:14 CDT
Reuters - The federal government has agreed to accept $25 billion of preferred stock in two American International Group Inc businesses as partial repayment of debt, the company said on Thursday.
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U.S. durable goods jump
(Reuters)
Wed, 24 Jun 2009 15:50:00 CDT
Reuters - The Federal Reserve on Wednesday stuck to its huge program of buying government and mortgage debt, which is designed to keep borrowing costs low and boost recovery, and said it saw signs that the deep U.S. recession was easing.
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U.S. mortgage applications climb from 7-month low
(Reuters)
Wed, 24 Jun 2009 6:07:02 CDT
Reuters - An unexpected jump in U.S. durable goods orders last month backed hopes the economy was healing, a prospect cautiously supported by the Federal Reserve on Wednesday.
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SNB Grabs the Spotlight
Tue, 23 Jun 2009 19:00:00 CDT
While the FOMC failed to excite the market, it was SNB's currency intervention which provided the day's fireworks. Overall, the Fed stuck to the company line (perhaps a slight hawkish lean) stating "conditions in financial markets have generally improved in recent months" and "the pace of economic contraction is slowing" in regard to growth. In regard to inflation, stated “substantial resource...
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FOMC Due
Mon, 22 Jun 2009 19:00:00 CDT
In light trading, risk appetite has stabilized with USD weakening, while equities and commodities temporarily halted their downside slide. The S&P closed slightly higher, CRB Commodity Index closed back above its 200d MA on the back of stronger crude, which closed up $2.07 to $69.22bll. However, the rationale for the sudden shift in sentiment for a third time this week is difficult to...
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World Bank Downgrade its Global Growth Estimate
Mon, 22 Jun 2009 7:21:29 CDT
With any market move, pundits (such as myself) are forced to assign a rationale. This has been the case with the recent sell off in commodity prices and spillover effect into FX. Yesterday, price move were conveniently attributed to the World Bank's downgrade of its global growth estimates. We have our doubts that an international organization forecast would have such a profound on market...
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The FOMC, Quantitative Easing and the Dollar
Mon, 22 Jun 2009 3:18:13 CDT
After a few months out of the currency spotlight the Federal Reserve will once again be the focus for traders when the Federal Reserve Open Market Committee (FOMC) meets this coming Wednesday and Thursday. This time it will not be the Fed Funds target rate, the central bank's chief historical...
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Weekly Forex Signals: EUR/USD
Mon, 22 Jun 2009 0:37:15 CDT
Technical analysis shows the euro may continue its downtrend as MACD giving us a selling signal by crossing the signal line to MACD line downwards RSI breaks 70% line and is in a downtrend. We have strong supply in the market as stochastic shows us the market movement and Bollinger...
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Fed and BoE to Quash Speculation of Early Rate Hikes
Sun, 21 Jun 2009 23:16:56 CDT
The improvement in economic activity data in recent weeks has raised market speculation about the potential 'exit strategies' central banks may employ from the various initiatives undertaken to tackle the financial crisis. However, with considerable uncertainty still overshadowing prospects for future economic growth and inflation, we believe such considerations may...
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Subtle USD Strength in an Uncertain Market
Thu, 18 Jun 2009 19:00:00 CDT
Uncertainty seems to be the core theme in FX markets, with the USD stuck in limbo. With a busy week ahead, markets are taking a wait and see approach to pricing. With Eurozone PMI, US durable goods, UK CBI distributive trades, Swiss KoF and the FOMC announcement on the docket, we would expect the EURUSD to be pushed out of its subtle bearish channel (horizontal support 1.3750). The key event for...
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FX Markets Range Bound & SNB Policy Unchanged
Wed, 17 Jun 2009 19:00:00 CDT
We are seeing a return of buying risky assets. However, movements have been choppy and of little significance. Yesterday's Philly Fed survey positive surprise help give markets the lift they needed after a difficult week. In early Asian trading, Reuters reported that the British Bankers' Association (BBA) said it will allow more institutions to take part in the daily survey that sets the London...
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SNB Rate Announcement & Philly Fed Index
Mon, 15 Jun 2009 19:00:00 CDT
With the EURCHF heading towards the 1.5000 level, perhaps the main event in European session will be the SNB's announcement. There is little room for a surprise rate change of 3-mth Libor target, so speculation revolves around if the SNB will increase the scale of its QE and/or continue its efforts to weaken the CHF. Originally, the SNB announced its unsterilized FX intervention policy would...
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Usd Gains Halted as Risk Appetite Returns
Sun, 14 Jun 2009 19:00:00 CDT
The USD lost some ground, as European markets opened higher and risk appetite seems to be cautiously creeping back. The EURUSD rallied to 1.3900, while the JPY crosses, which had been under significant selling pressure, rallied across the board. Yesterday, the S&P closed down almost 2.4% and major indexes in the Asia-Pacific region all closed lower. European indexes, which opened notably...
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USD Survives G8 and Continues to Strengthen Ahead of BRIC Conference
Wed, 10 Jun 2009 19:00:00 CDT
This weekend's G8 conference ended with no real surprises. The final communiqué left the impression that ministers have formed a united front on the need to develop “exit strategies” from unconventional policy measures (however obvious division among countries with respect to individual nations current strategies exist) to head off inflation. While forward looking thinking is always commendable,...
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Today its All About US Retail Sales
Tue, 9 Jun 2009 19:00:00 CDT
Today’s US retail sales release will be an interesting test that FX market's reaction to US data might be shifting. Currently the trend is counter intuitive and positive US data is viewed as “pro-risk” causing USD selling. The recent discussions from FOMC members and participants globally over the timing of ending the entrenched accommodating monetary policy, prompted the market to price in 50bp...
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Markets Pair Back Fed Rate Expectations
Mon, 8 Jun 2009 19:00:00 CDT
The recent support the USD has garnered on speculation that the Fed would begin to drain liquidity and tighten rates seems to be waning. Mounting positive economic data (Friday's NFP) and hawkish comments from ECB members (Trichet's press conference comments) fueled USD buying and a decline in demand for risky assets. However, the foundation of the trade was thin and since Tuesday has seen a...
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Flurry of encouraging news has optimists buzzing but can it convince the broader market?
Sun, 7 Jun 2009 19:00:00 CDT
Reports that the Fed will announce 10 banks are ready to pay back the TARP funds they benefitted from at the height of the crisis has added to the general idea that the larger economies are steering clear of the worst part of this economic crisis – this should amount to $50Bn in funds being returned. This is expected to be a Dollar and Yen bear signal as the haven currencies throughout this...
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USD Rallies Back on Stronger US data
Fri, 5 Jun 2009 9:40:01 CDT
There has been a stark change in the markets’ sentiment regarding the USD since last Thursday. The obvious question is: is this shift a complete reversal or just a temporary correction before a continued USD weakness? The markets reaction to the large upside surprise to private sector payroll employment (improvements across all sectors) seems to us slightly misguided. The USD initially sold off...
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Waiting on NFP
Wed, 3 Jun 2009 19:00:00 CDT
When the smoke cleared, not much really happened at yesterday's much hyped Central Bank announcement. In fact, we would venture to say that the day's only real fireworks occurred when rumors spread of the resignation of PM Gordon Brown and/or Alistair Darling. The GBPUSD fell from 1.6400 to 1.6090 on the false news. The once untouchable Sterling has now taken on a decidedly bearish tone....
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