Daily Forex News

Forex − Dollar ended last week higher after smaller−than−expected loss from Citigroup

Mon, Jul 21 2008, 12:25 GMT
by Peter Rosentreich

ACM - Advanced Currency Markets


Forex News and Events:

The Dollar rose on Friday, heading for its largest weekly gain versus the Euro in a month, after a smaller-than-expected quarterly loss from Citigroup eased worries about the US financial sector. Citi's results added to positive earnings news this week from Wells Fargo and JPMorgan Chase. That allowed the Dollar to regain some strength after slumping to a record low against the Euro on Tuesday. EurUsd rose only 0.18% to 1.5853, well off its record high of 1.6039 set on Tuesday.

UsdJpy was up 1.08% at 106.24. UsdChf rose 0.25% at 1.0225. GbpUsd rose 0.05% at 1.9983 after hitting 1.9907 low.

The Euro was capped by European Central Bank President Jean-Claude Trichet's comments published on Friday that euro-zone growth is likely to be weak in the second and third quarters before staging a recovery. Risks to growth were on the downside, Trichet said in a joint interview with four European newspapers. For the week, EurUsd has lost 0.71%, while the GbpUsd rose 0.37% edging down from previous days on speculation the UK government would increase borrowing. Analysts said despite the Dollar's recovery on Friday, sentiment on the currency was still shaky.

Forex


Today's Key Issues (time in GMT):

00:00 JPY Oceans Day holiday in Japan
07:15 CHF June Producer/Import Price 0.6% vs 1.2% (MoM)
07:15 CHF June Producer/Import Price 4.5% vs 3.9% (YoY)
14:00 USD June Lead indicators -0.1% vs 0.1%


The Risk Today:

EurUsd Market hit 1.6039 high last week. This marks initial resistance over 1.6000 Pivot point resistance. A break there would open the way to key resistance 1.6200. On the downtrend, return below 1.5800 will undermine the recent uptrend. Any weakness may bring back 1.5400 – 1.5800 consolidation range. Below, strong support holds 1.5304 13th June low.

GbpUsd Cable is again in 1.9400 – 2.0000 trading range. It hit 2.0158 high last week. Key level holds again 2.0100. On the downside, only a return below 1.9649 might bring again focus on 1.9337 January low and 1.9105 (50% retracement of 1.7049 – 2.1162 advance). Initial support holds 1.9649 July 7th low. Strong support holds 1.9363 20th February and 14th May low.

UsdJpy Last week profit taking pushed the market back into 100 – 104 consolidation trading range and put 100 level on sight. Friday strong Dollar rebound put focus over 105 and mid-June 108.59 resistance and 110.10 strong resistance (Trendline). Further advance would open the way toward 111.92 early January high.

UsdChf Market hit 1.0013 last week. Further weakness below 1.0000 may open the way toward 0.9637 17th March low. Renewed strength over 1.0200 would reopen the 1.0200 – 1.0600 consolidation range. Initial resistance holds 1.0353 9th July high.


Resistance and Support:

EURUSD GBPUSD USDJPY USDCHF
1.6200 T 2.1162 S 111.92 K 1.1191 K
1.6039 M 2.0158 M 110.10 T 1.0625 T
1.6000 K 2.0100 K 105.66 M 1.0353 S
14:041.9915106.651.022
1.5800 S 2.0000 S 103.92 M 1.0013 M
1.5304 S 1.9649 S 102.73 S 1.0000 P
1.5000 K 1.9337 T 100.00 P 0.9637 K

S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot

Published on  Mon, Jul 21 2008, 12:32 GMT

Archive

Advanced Currency Markets, S.A.  | 50 Rue du Rhone CH-1204 Geneva
http://www.ac-markets.com | support@ac-markets.com

Legal disclaimer and risk disclosure

This report has been prepared by AC Markets and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by AC Markets personnel at any given time. ACM is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.

Interested in forex trading? forex brokerage firms!


ACM Advanced Currency Markets SA
Contact the broker/FDM
Open a demo account
MF Global UK Limited
Contact the broker/FDM
Open a demo account		ACM USA LLC
Contact the broker/FDM
Open a demo account		Capital Market Services, L.L.C.
Contact the broker/FDM
Open a demo account		Easy-Forex™ Trading Platform
Contact the broker/FDM

FXstreet.com will give you a 3 months membership as soon as minimum rebates have been generated (€150 for private trader/ €300 for corporate trader)

[Read Premium full description]


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.

Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management.

Risk Disclosure: 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 invest in 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.

©2008 "FXstreet.com. The Forex Market" All Rights Reserved.