Daily Forex Analysis
USD
It has been a positive day for the greenback as it has been strengthening all across the board in the last 24 hours.According to the releases yesterday,both non-farm productivity and unit labor costs continued to rise in the fourth quarter, but the optimism from these reports was limited by the sharp decline in factory orders and pending home sales. The near future of the Dollar is very much dependent on the labor market which will provide the biggest news event of this month, the Nonfarm Payrolls on Friday. The ... ( read more )
Archive for March, 2007
March 7, 2007 - Daily Forex Technical Analysis
Daily Forex Technical Analysis
EUR/USD
The pair made a small move up overnight and now consolidates around 1.3130. Daily studies show mixed signals at neutral levels, but are over all slightly bearish on a balance. No strong bias is seen, but overbought hourlies favor selling in the short-term.
GBP/USD
There has been a correction of almost 100 pips overnight for the pair that stopped the five day downtrend from the 1.9600 levels. The signals are mixed as the dailies are slightly bullish, and the hourlies are floating in overbought... ( read more )
Nonfarm Payrolls
Nonfarm Payrolls
Without question, the single most important piece of data contained in the employment report generally and the establishment survey specifically is Nonfarm payrolls. As the name implies, Nonfarm payrolls measure the number of people on the payrolls of all non-agricultural businesses. The monthly changes in payrolls can be quite volatile, occasionally varying by better than 200K from one month to the next. Even with this volatility and the possibility of large revisions to past data, the payrolls figures offer the most timely... ( read more )
March 6, 2007 - Daily Forex Analysis
Daily Forex Analysis
USD
Yesterday, the ISM Services Index released at 54.3 on the back of expectations of 57.2. The ISM Services measures the business activity in the non manufacturing sector of the US economy, and the reading reflected nearly a 5 pt drop from January's 59 reading. The weak ISM figure suggests that the weakness previously seen in other parts of the economy has started to have an impact on the service sector as well. Despite the weaker than expected reading, markets seem to have shrugged off the disappointing figure as t... ( read more )
March 6, 2007 - Daily Forex Technical Analysis
Daily Forex Technical Analysis
EUR/USD
The pair found a trendline support around 1.3080, a trendline that is basically the lower boundary of an upsloping channel. A retracement towards 1.3250 is likely, but a breech below the trendline support might trigger a 200 pip move, which is the size of the channel.
GBP/USD
A trendline extending from late July 2006 held firm yesterday in this pair's attempt to breech below 1.9080. This might signal a bottom in the recent pair's sell-off. 4H oscillators are negative but facing up, we recom... ( read more )