Daily Forex Analysis
USD
The USD fell sharply yesterday after hawkish statements by ECB president Jean Claude Trichet regarding the future European interest rate and the yield differential between the currencies (EUR snd USD). Moreover, the RCB (Russian Central Bank) said yesterday that they will revise down the dollar reserve from 60% to 55% and increase the Euro reserve from 40% to 45% which also pressured the US Dollar.
As for economic data, the Jobless claims for the week came at 311K, just 3K higher in comparison to the previous ... ( read more )
Daily Forex Analysis
February 9, 2007 - Daily Forex Technical Analysis
Daily Forex Technical Analysis
EUR/USD
The 1.3050 resistance (January 9th & 23rd, February 1st) was firm yesterday as we noticed some massive sell positions executed at this levels. The channel pattern in the past month, with support around the 1.2980 levels, suggests that we shall see a correction back towards those levels or at least underneath the 1.30 area.
GBP/USD
The pair was quite volatile in the last 48 hours signaling confusion as far as the overall trend. Daily RSI is moving deeper into oversold levels still with room ... ( read more )
February 8, 2007 - Daily Forex Analysis
Daily Forex Analysis
USD
The USD has been floating on a permanent range for the last week, and produced no interesting movement whatsoever. It looks as if the focus of the traders was not on the US market this week, as most of the attention will be centered at the G7 this weekend and the ECB rate decision. The only 2 major events that are expected to come from the US market are Wholesale Inventories and the February Jobless claims. The first is not expected to generate any big surprises, and will probably come in unchanged at 1.0%. The Jo... ( read more )
February 7, 2007 - Daily Forex Analysis
Daily Forex Analysis
USD
Yesterday, the USD managed to recapture some of the ground it ceded to the EUR and the GBP last Friday, while little changed against most of its other counterparts. The USD gained a little over 60 pips against the EUR to trade at the 1.2990 region and about 100 pips against the GBP to get the pair back to the 1.9700 region. Dollar's strength came despite the lack of any meaningful economic releases from the US and despite some disappointing Euro Zone data, and reflects these major pairs' return to the trading rang... ( read more )
February 6, 2007 - Daily Forex Analysis
USD
The ISM Non Manufacturing index, which measures the activity level of purchasing managers in the service sector, rose to 59.0 in January on expectations of 56.8, well above the 50 economic contraction/expansion level. Last week, the Manufacturing PMI came at 49.3, below the 50 boom/bust level. The strong service sector ISM indicated that although some moderation, or perhaps even contraction, is taking place in the manufacturing sector, we are in no way near the "hard-landing" scenario so many economists were concerned of. The rise in the... ( read more )