Search
Daily Forex Outlook
0
0
USD recieves a boost from ISM Manufacturing Survey, Gold still shining
Wed, Jul 2 2008, 01:43 GMT
by Easy Forex Team
USD recieves a boost from ISM Manufacturing Survey, Gold still shining
U.S. Dollar Trading (USD) saw some continued weakness early in the European session as potential profit warnings from UBS and Deutsche Bank sent European and US futures into deep negative territory. A surprising jumpin June ISM manufacturing index to 50.2 put the sector in expansion territory for the first time in 5 months. Economist’s were looking for a weaker 48.6 figure and combined with a relief rally in the US stocks the Dollar was able to rally off lows. In U.S. share markets, the NASDAQ was up 11 points (0.52%) and the Dow Jones was up 32 points (0.28%). Crude Oil closed up $0.77 ending the New York session at $140.97 per barrel. Looking ahead, ADP Employment Report for June expected at -20K down from May’s 40K. May Factory Orders expected at 0.4% falling form Aprils 1.1%.
The Euro (EUR) received a boost from a strong rebound in German Retail Sales at 1.3% in May vs. -0.6% in April. Attempts above 1.5800 were short lived however with profit taking pushing the pair into its more comfortable 1.5750-90 range. Stronger US data and a barrage of weak third tier data helped to also cap with market seen consolidating before the ECB rate announcement on Thursday. Overall the EUR/USD traded with a low of 1.5723 and a high of 1.5818 before closing the day at 1.5789 in the New York session. Looking ahead, we have ECB president Trichet speaking and May PPI expected to rise to 0.9% from 0.8% in April.
The Japanese Yen (JPY) banking rumours lead the Yen to make good gains on rising risk aversion before reversing on positive US data and equities. The Yen was also supported by the Tankan Large manufacturing Index of 5 for 2nd Quarter beating expectations of 3. Overall the USDJPY traded with a low of 105.33 and a high of 106.39 before closing the day around 106.05 in the New York session.
The Sterling (GBP) shrugged off weak UK data to test the key 2.00 level on the cable. Nationwide House prices continued to fall -0.9% in June m/m and -6.3% y/y. The June Manufacturing PMI capped the rally though with a disappointing 45.8(forecast 49.8).Overall the GBP/USD traded with a low of 1.9890 and a high of 2.006 before closing the day at 1.9941 in the New York session.
The Australian Dollar (AUD) came under pressure after the RBA held rates and released a relatively neutral statement disappointing the Aussie bulls. The statement suggested that the current monetary policy was appropriate and that substantial tightening of financial conditions had occured. Overall the AUD/USD traded with a low of 0.9512 and a high 0.9594 before closing the day at 0.9525. Looking ahead, May retails sales are expected to be slightly positive and Building permits are expected to fall -3% m/m after Aprils 6.7% rise.
Gold (XAU) broke through some key resistances on route to new multi month highs with Oil remaining strong and rising risk aversion seen supporting. Overall trading with a low of USD$922 and high of USD$946.50 ending the New York session at USD$940 an ounce.
TECHNICAL COMMENTARY
Euro – 1.5790
Initial support at 1.5720 (June 27 low) followed by 1.5628 (June 26 low). Initial resistance is now located 1.5836 (Jun 30 High) at followed by 1.5844 (Jun 9 high).
Yen – 106.00
Initial support is located at 104.99 (June 30 low) followed by 104.42 (Jun 9 low). Initial resistance is now at 106.47 (Jun 30 high) followed by 107.22 (Jun 27 high).
Pound – 1.9950
Initial support at 1.9881 (June 30 low) followed by 1.9806 (Jun 27 low). Initial resistance is now at 2.0008 (July 1 high) followed by 2.0027 (Apr 21 high)
Australian Dollar – 0.9585
Initial support at 0.9512 (July 1 low) followed by 0.9491 (June 20 low). Initial resistance is now at 0.9670 (Jun 30 high) followed by 0.9700 (Round number resistance).
Gold – 939
Initial support at 910.6 (Jun 27 low) followed by 885.1 (Jun 26 low). Initial resistance is now at 946.4 (July 1 high) followed by 953.0 (April 17 high).
Published on Wed, Jul 2 2008, 01:45 GMT
Archive
- US Stocks Crash on Recession Confirmation
Published On Tue, Dec 2 2008, 02:37 GMT - Euro weakens ahead of ECB this week
Published On Mon, Dec 1 2008, 03:12 GMT - Calm Markets with US away, Black Friday today
Published On Fri, Nov 28 2008, 02:30 GMT - 4th day of US stock gains ahead of Thanksgiving Holiday
Published On Thu, Nov 27 2008, 02:12 GMT - Fed Unveils $800B Consumer Loan Program
Published On Wed, Nov 26 2008, 01:59 GMT
Easy Forex
| P.O. Box 53742. Limassol 3317
http://www.easy-forex.com | info@easy-forex.com
Legal disclaimer and risk disclosure
Easy-Forex makes no recommendations as to the merits of any financial product referred to in this website, emails or its related websites and the information contained does not take into account your personal objectives, financial situation and needs. Therefore you should consider whether these products are appropriate in view of your objectives, financial situation and needs as well as considering the risks associated in dealing with those products Risk Disclaimer: The risk disclaimer is meant to inform the user of the potential financial risks of engaging in foreign exchange trading. The transaction of such financial instruments known as forex, fx, currency, and dealt on a valued basis known as 'spot' or 'forward' 'Day Trading' and 'option', can contain a substantial degree of risk. Before deciding to undertake such transactions with Advanced currency markets Easy-Forex LTD (herewith expressed as Easy-Forex) and indeed any other firm offering similar services, a user should carefully evaluate whether his/her financial situation is appropriate. Trading foreign exchange may result in substantial loss of funds and/or complete loss of funds and therefore should only be undertaken with risk capital. The definition of risk capital is funds that are not necessary to the survival or well being of the user. Easy-Forex strongly recommends that a user considering trading foreign exchange products read through all the main topics contained in the Easy-Forex website so that he/she may obtain a clear and accurate understanding of the risks inherent to fx trading. Opinions and analysis on potential expected market movements contained within the Easy-Forex website are not to be considered necessarily precise or timely and due to the public nature of the internet, Easy-Forex cannot at any time guarantee the accuracy of such information. Trading on-line, no matter how convenient or efficient it may be, does not necessarily reduce the risks associated with foreign exchange trading, and Easy-Forex does not accept any responsibility towards any customer, member or third party, acting on such information contained on the web site as to the accuracy or delay of information such as quotations, news and charts derived from quotations.Interested in forex trading? forex brokerage firms!
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]
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.
©2008 "FXstreet.com. The Forex Market" All Rights Reserved.