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U.S. Consumer spending declines.

Tue, Feb 3 2009, 03:39 GMT
by James Whyte

ForexAmericas

In the news:

At the end of today’s U.S. session stocks ended the day lower, as consumer spending showed a decline to -1.0% from a -0.8% the previous month. Another big factor in today’s sell off was the announcement from Macy’s that it will cut another 7,000 jobs. Oil prices continued sliding today about 4% on more concerns about a slowing economy. Overnight the Asian Markets and European Markets ended their sessions marginally lower.

USD/CHF:

Today’s chart shows us a possible channel formation in the Dollar vs. Swiss. Last week the dollar got a boost from the Fed’s decision to keep interest rates unchanged. The bullish Dollar took the pair to a high of 1.1657 in early New York on Friday, and the trend continued at the Asian open. During the European session the Usd/Chf hit a high of 1.1683 (8:00 GMT). The dollar has been giving up gains since the start of European trading last night, and ahead of the U.S. data this morning. This morning the U.S. released Personal Spending which came in at -1% vs. a -.09%. This has been one the reason why the dollar has given most of its gains from last week back, as investors realize how important consumer expending is to the U.S. economy. Technically we are looking at a 4 hour chart with a channel formation, which has support at 1.1570/80 and resistance at 1.1680/1.1700. On a shorter time plot (1hr) we have support at 1.1545/55 level, and resistance at 1.1635/46 from there next level of resistance is 1.1675/85.

Published on  Tue, Feb 3 2009, 03:45 GMT