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Today's Forex Market Outlook

Thu, Jul 2 2009, 13:10 GMT
by Matt James

Advanced Currency FX

Stocks in the US made a return back over the 8500 by the close yesterday even though the economic data coming out of the states was not favourable. The ADP report were worse than expected coming in at -473k (up marginally from last month). This was mainly due to the stimulus package set by the government not assisting the employers to increase hiring. The unemployment rate at 9.5% indicating a longer and slower recovery time for the economy. Oil down this morning at time of writing along with the European stocks and if this continues into the trading stateside, expect the dollar to strengthen further.

Cable traders today should be looking for a break below 1.6330 and to hold for further downside pressure for the pound and should look for a move to the 50% Fib retracement level for the month of 1.6280 before a heavy support of 1.6220. The key indicators now are oil and gold, and as they are still falling this morning along with the equity futures looking to open lower, all signs are there for dollar strength. As with so many US openings of late, we could so very easily see a turn by the end of the trading day. Resistance at 1.6430 ahead of 1.6490

Euro trading today coming off the highs of 1.4150/55 breaking through the 38.2 and the 50% retracement levels for the week hovering at the 38.2 % level for the month at time of writing. Support at 1.40, and 1.3980 which if breaks, expect a move towards 1.3920 level. Resistance at 1.4080 ahead of 1.4130.

Dollar Yen at the 38.2% retracement level for the week at time of writing, a break below heading for the 96 level ahead of 95.80.

Published on  Thu, Jul 2 2009, 13:10 GMT