FXstreet.com

European and US summary

This report has been deactivated

1

0

USD Rallies Sharply

Mon, Jun 15 2009, 22:17 GMT
by Korman Tam

Forexnews.com


6/15/2009 3:24 PM: EUR/$..1.3785 $/JPY..97.72 GBP/$..1.6296 $/CHF..1.0922 AUD/$..0.7938 $/CAD..1.1322

USD Rallies Sharply

The greenback received a boost across the board at the start of the week, edging up to 1.3757 against the euro and 1.6245 versus the pound. Prompting the currency’s strength were comments from Russian Finance Minister Kudrin, in which he expressed confidence in the dollar as the global reserve currency of choice and that it would be premature to discuss an alternative. Recall several weeks ago, the dollar came under pressure following a series of comments from both Russian and Chinese government officials calling for a new global currency to replace the greenback given the deteriorating fiscal position.

US equity bourses posted steep losses, with the Dow Jones, Nasdaq and S&P 500 plunging by well over 2%. The economic calendar was largely negative today, with the June NY Fed manufacturing index deteriorating by more than expected to -9.41 versus May at -4.55. The April overall net capital flows revealed a net outflow of $53.2 billion, versus an inflow of $23.2 billion in the month prior. The June NAHB housing market survey missed estimates for an improvement to 17, instead dipping to 15 from 16 in May.

Key data slated for release in the Tuesday session include May PPI, building permits, housing starts, and industrial production. The headline producer price index in May is seen edging up to 0.4%, from 0.3% a month earlier and remain unchanged from the previous year at -3.7%. Core PPI is estimated to hold steady at 0.1% m/m and 3.2% y/y. Traders have continued to focus on housing reports for signs that the housing market has begun to bottom. The May housing starts are expected to improve to 490k units, compared with 458k units a month earlier while building permits are forecasted to edge up to 500k units from 498k units previously.. Meanwhile, May industrial production is seen holding steady from the previous month, posting a 0.5% decline.
 
Euro Stumbles

The euro fell sharply amid broadbased USD strength in the Monday session, tumbling to near one-month low at 1.3754. The Eurozone employment figures released overnight saw Q1 employment decline by 0.8% versus a 0.3% drop in the previous quarter while falling by 1.2% on an annualized basis.

The euro trades just beneath the 1.38-level, with support seen emerging at 1.3760, followed by 1.3720 and 1.37. Subsequent floors are eyed at 1.3650, backed by 1.36 and 1.3580. On the topside, gains will encounter resistance at 1.38, followed by 1.3840 and 1.3875. Additional ceilings are seen at 1.39, followed by 1.3940 and 1.3980.


Archive

MG Financial Group  | 40 Exchange Place 12th Floor New York, New York 10005
http://www.mgforex.com | service@mgforex.com

Legal disclaimer and risk disclosure

MG Financial Group, or any of its related companies, will not be held responsible for the reliability or accuracy of the information available on this site. The content provided is put forward in good faith and believed to be accurate, however, there are no implicit guarantees of accuracy or timeliness.

Related reports

Technical Major Currencies Report - Technical Major Currencies Morning Report by ecPulse.com
Tue, Nov 24 2009, 09:48 GMT

Forex Daily Analysis - Forex Trading - Dollar Tumbles After Big Day on Wall Street by ForexYard
Tue, Nov 24 2009, 09:47 GMT

Timeframe Breakdowns - EURUSD / EURGBP / EURJPY / GBPUSD by Turtle Futures
Tue, Nov 24 2009, 09:19 GMT

London Bullion Report - Precious metals pause as concerns surface over economic recovery by The Bullion Desk
Tue, Nov 24 2009, 08:56 GMT

Daily World Market Update - Dollar's Day of Data; GDP, Consumer Confidence, Fed Minutes by World First UK Ltd
Tue, Nov 24 2009, 08:39 GMT

indicator, eurusd, eurozone

View All

Related content


Interested in forex trading? forex brokerage firms!


ACM Advanced Currency Markets SA
Contact the broker/FDM
Open a demo account
FX Solutions LLC
Contact the broker/FDM
Open a demo account
Forex Club Financial Company
Contact the broker/FDM
Open a demo account
CitiFX Pro
Contact the broker/FDM
Open a demo account
GFT
Contact the broker/FDM
Open a demo account

GET CASH BACK FOR YOUR TRADES!   Learn more about the Pip Rebate Program

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.

Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

©2009 "FXstreet.com. The Forex Market" All Rights Reserved.