The past week has been relatively light on news events from the US, and the USD pegged currencies mostly moved in a range with no ground breaking sharp movements. Yesterday the GDP revision was released inline with expectations at 4.0% for the annualized and 2.7% for the deflator. The House Price Index came in a bit lower than expected at 0.2% but caused no significant move.
Today will be a day packed with major news events, and traders should expect high volatility especially from the USD side of the board.
The first release at 12:30 GMT w... ( read more )
Archive for August, 2007
August 30, 2007 - USD Bearishness Continues.
Yesterday the greenback continued on its bearish decent as it lost ground against most of the majors. Earlier in the week investors were expecting the FOMC minutes to give some indication as to when the Fed will cut rates, however the FOMC minutes did not reveal much and this created uncertainty in the market of whether the Fed is actually planning to cut rates. There was no significant economic news released from the US yesterday, so the bearish momentum that was created by the discrete FOMC minutes continued throughout yesterdays trading. The... ( read more )
August 29, 2007 - Uncertainty engulfs the greenback’s fate.
Monday’s releases from the US markets, which showed that US Existing Home Sales went down by 0.2% in July, caused the greenback to be traded at a mixed trend against most of the major currencies. The weak housing figures is raising many doubts and concerns about the health of the world's largest economy, this lower home values left Americans feeling less wealthy. Investors are waiting for the speech on "Housing and Monetary Policy" by Fed Chairman Ben Bernanke later this Friday, which will probably offer few hints about the future directions ... ( read more )
August 29, 2007 - Daily Forex Technical Analysis
EUR/USD
The pair is now trading around 1.3600 which is the 50% Fibonacci level of the 1.3850/1.3360 move. If a breach up through that level will occur, we should see the pair initiating a further bullish move into the 1.3650 move. The daily chart is supporting the bullish notion, as the slow stochastic floats around 40, which indicates some more room to extend up.
GBP/USD
The cable is floating at the upper levels of the downward channel that is forming on the daily chart. Together with the slow stochastic and RSI which are both at the ... ( read more )
August 28, 2007 - US Consumer Confidence on Tap.
Existing home sales released yesterday align with expectations at 5.75M and only slightly below the previous value of 5.76M, there was only a slight reaction from the market because the value was already anticipated by investors. Despite a low release of Existing Home Sales and with the difficulties in the US housing market, New Home Sales rose last week substantially from 846K to 870K. We are getting mixed signals from the housing market this month as the New Home Sales release surprised on the upside while there was a fall in the decreasing H... ( read more )