Forex Trading TV Video Blog

Yesterday was a relatively volatile session for greenback pairs. Because of Memorial Day in the US, banks remained closed during the day, and as a result an extremely low volume was observed within USD trading. The EUR\USD saw volatile behavior from the beginning of the trading week until the end of the day yesterday, as well as the USD\JPY. The GBP\USD started the day with bearish momentum, dropping as low as 1.9768, but than made a reversal and rose back up to 1.9825. In observance of Memorial Day no data was released yesterday from the US regarding the USD. As for today, a basket of data is scheduled for the USD. At 12:15 (GMT) Federal Reserve Governor Kroszner will deliver a speech titled “prospects for recovery and repair of mortgage markets”, in Sao Paolo. In his speech, clues regarding future monetary policy might be scattered. Later on, the National Home Price Index Composite-20 will be published, and it’s predicted to decrease by 14.3%. The main event for today will take place at 14:00 (GMT), when the U.S New Home Sales is due. This survey measures the new residential buildings that were sold during the previous month, and analysts forecast it to come in at 522K, lower than last month’s 526K. The previous month’s figure was the lowest figure since October 1991, and further descending trends will demonstrate six consecutive months of deterioration. At the same time, the Consumer Confidence is scheduled. It measures the mood of consumers in regard to economic conditions. It is also expected to reflect a lower reading point than the previous month - 60.0, as opposed to 62.3.

If analysts’ expectations of negative results for all U.S data will occur, a bearish trend is likely for the greenback. More importantly, the combination of bad results from these two events can very easily contribute to the EUR/USD testing 1.60 once again. However, traders should follow carefully over today’s developments as unpredicted figures might take place.

My Forex Blog