•  
  • New York 19:36
  • London 00:36
  • Barcelona 01:36
  • Tokyo 09:36
  • Sydney 11:36
  • SignUp | Login

Daily Trading Forecast

2

0

Do Not Expect Too Much of Today's ECB Rate Decision

Thu, Jul 2 2009, 09:40 GMT
by Swiss e Trade Strategy Team

Swiss e Trade AG


The market expects an unchanged ECB rate at 1% today, to be published at 13.45 CET. But what is more important are the comments to the protocol at 14:30 CET, where the market sees more pronounced signals of monetary easing, i.e. buying up the Eurozone’s bonds. That would give a boost to the Euro, but we doubt that these announcements will be clear enough to accomplish that. This European morning, for instance, the EUR / USD is in retreat, although oversold enough right now to give room for some recovery today.

Accordingly, we put our trading bands a little lower for the dollar today in the major pairs, as described below. Note the 14:30 CET U.S. unemployment rate and the non-farm payrolls for June, usually market-moving factors, although these are lagging indicators for the economy. Expected is a slightly worse development in these numbers.

by George Clement

Intraday Market Outlook for Day Traders

EUR / USD
The pair was in retreat in all of early European trading and is currently priced at 1.4090. We see some recovery potential today, but not beyond yesterday’s levels around 1.4190.

GBP / USD
Cable fell further after a weak Asian session in this European morning and is currently trading around 1.6350, just testing a longer-term support zone. We expect this zone to hold in today’s trading and see some recovery potential up to the 1.6450 mark.

USD / CHF
The dollar attempted some recovery against the Swiss franc in early European trading and is priced right now around 1.0800. We do not expect this recovery to go far today, bumping soon into resistance around 1.0840. Setbacks from there are likely, to 1.0760.

USD / JPY
A slight recovery of the dollar against the yen emerged in Asian trading, which is continuing right now in the European morning. Currently trading at 96.65 in low volatility, we expect this recovery to come to a halt at the 96.90 mark today.


Archive

Swiss e Trade AG  | Alfred-Escher-Strasse 26 8002 Zurich
http://www.swissetrade.com/ | info@swissetrade.com

Legal disclaimer and risk disclosure

Swiss e Trade AG shall not be responsible for any loss arising from any investment based on any recommendation, forecast or other information herein contained. The contents of this publication should not be construed as an express or implied promise, guarantee or implication by Swiss e Trade that clients will profit from the strategies herein or that losses in connection therewith can or will be limited. Trades in accordance with the recommendations in an analysis, especially leveraged investments such as foreign exchange trading and investment in derivatives, can be very speculative and may result in losses as well as profits, in particular if the conditions mentioned in the analysis do not occur as anticipated.

Related reports

U.S. Forex Market Commentary by GCI
Tue, Feb 9 2010, 22:21 GMT

USDJPY Chartist Analysis by FXBoss
Tue, Feb 9 2010, 15:45 GMT

USD lower pressured by Greek rescue hopes by Easy Forex
Tue, Feb 9 2010, 15:22 GMT

Euro is catching a breather on Tuesday by Wells Fargo Investments, LLC
Tue, Feb 9 2010, 14:54 GMT

Hopes of tackling budget deficit in Greece sap demand on refuges by ecPulse.com
Tue, Feb 9 2010, 14:49 GMT

employment, eurusd, ecb, centralbanks, nfp, usdchf, usdjpy

[ View All ]

Related content

Japan December machinery orders +20% MoM Vs 8% expectations
Forex Live | Tue, Feb 9 2010, 23:55 GMT

USD/JPY Current Price: 89.75
FXstreet.com | Tue, Feb 9 2010, 23:36 GMT

GBP/USD Current price: 1.5702
FXstreet.com | Tue, Feb 9 2010, 23:34 GMT

EUR/USD Current price: 1.3792
FXstreet.com | Tue, Feb 9 2010, 23:31 GMT

Forex: EUR/USD surges on a possible Greek rescue. Trades above1.3700
FXstreet.com | Tue, Feb 9 2010, 23:31 GMT

employment, eurusd, ecb, centralbanks, nfp, usdchf, usdjpy

[ View All ]

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.

©2010 "FXstreet.com. The Forex Market" All Rights Reserved.