•  
  • New York 19:45
  • London 23:45
  • Barcelona 00:45
  • Tokyo 08:45
  • Sydney 10:45

  • SignUp | Login

Daily Forex Outlook

Japan coming to Stimulus Party

Wed, Apr 1 2009, 02:49 GMT
by Easy Forex Team

Easy Forex  |  View company's profile


Vote:

2

0

Japan coming to Stimulus Party

  • U.S. Dollar Trading (USD) massive moves seem in the last day of the first quarter with the USD a mixed recipient of flows. The rally seen in the EURO dragged all the majors higher and the Yen was very weak. US data was poor with Chicago PMI slipping to 31.4 and US CB consumer confidence remaining low at 26 vs. 25.3 previously.  Crude Oil closed up $1.49 ending the New York session at $49.90 per barrel. In US share markets, the Nasdaq was up 26 points or 1.78% whilst the Dow Jones up 86 points or 1.16%. Looking ahead, March ISM Manufacturing Forecast at 36 vs. 35.8. Also released, ADP Employment Report forecast at -655K vs. -697K previously.

  • The Euro (EUR) Tested the topside of the recent range, trading above 1.33 but the pair couldn’t sustain these levels as caution set in ahead of the ECB announcement and economic data disappointed. German Unemployment rate jumped to 8.1% vs. 8.0% forecast and EU inflation (Mar) dropped faster than expected to 0.6% y/y from 1.2% previously. Overall the EUR/USD traded with a low of 1.3176 and a high of 1.3341 before closing the day at 1.3341. Looking ahead, German PMI Manufacturing is forecast to rise to 32.5 vs. 32.1 previously. Also released, German Retail Sales (FEB) forecast to rise 0.2% vs. -0.6% previously m/m.

  • The Japanese Yen (JPY) was sold aggressively today in contrast to Monday as news of a new stimulus package from Japan emerged and Unemployment jumped to 4.4% its highest level in 3 years. USD/JPY was especially buoyant climbing above 99 for the first time in 3 weeks. Overall the USDJPY traded with a low of 97.40 and a high of 99.46 before closing the day around 98.95 in the New York session. UPDATE Q1 Tankan Large Manufacturing Index at -58 vs. -24 previously. Lowest on record.

  • The Sterling (GBP) jumped higher as market sentiment improved and GBP/JPY surged back above 140. UK Consumer Confidence (Mar) surge to -30 it’s highest since May. Overall the GBP/USD traded with a low of 1.4243 and a high of 1.4375 before closing the day at 1.4350 in the New York session. Looking ahead, PMI Manufacturing forecast at 35 vs. 34.7 previously.

  • The Australian Dollar (AUD) rallied a good 150 pips on the back of the Japan news and positive US stocks before crashing lower in Late US on news from the New Zealand Reserve Bank that interest rate perceptions are off the mark. Overall the AUD/USD traded with a low of 0.6794 and a high of 0.6969 before closing the US session at 0.6910. UPDATE FEB RETAIL SALES -2.0% vs. -0.5% forecast.

  • Gold (XAU) ended the day were it began as the recent range held true for another day. The market will await the outcome of the G20 meeting for further direction. Overall trading with a low of USD$912 and high of USD$925 before ending the New York session at USD$918 an ounce.

TECHNICAL COMMENTARY

Chart

  • Euro – 1.3245

Initial support at 1.3174 (Mar 31 low) followed by 1.3113 (Mar 30 low). Initial resistance is now located at 1.3343 (Mar 31 high) at followed by 1.3592 (Mar 27 high)

  • Yen – 98.95

Initial support is located at 97.23 (Mar 31 low) followed by 95.43 (Mar 23 low). Initial resistance is now at 99.37 (Mar 31 high) followed by 99.68 (Mar 5 high).

  • Pound – 1.4350

Initial support at 1.4241 (Mar 31 low) followed by 1.4112 (Mar 30 low). Initial resistance is now at 1.4361 (Mar 31 high) followed by 1.4494 (Mar 27 high).

  • Australian Dollar – 0.6915

Initial support at 0.6771 (Mar 30 low) followed by the 0.6724 (Mar 19 low). Initial resistance is now at 0.6966 (Mar 31 high) followed by 0.7094 (Mar 24 high).

  • Gold – 918

Initial support at 909 (Mar 30 low) followed by 883 (Mar 18 low). Initial resistance is now at 945 (Mar 26 high) followed by 966 (Mar 20 high).

Published on  Wed, Apr 1 2009, 02:52 GMT


Easy Forex http://www.easy-forex.com | info@easy-forex.com

Archive


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.
Vote:

2

0

Related reports

Continued Economic Recovery, Low Inflation by Wells Fargo Investments, LLC
Fri, Mar 19 2010, 19:58 GMT

USD higher, Greek debt worries, India hikes rates by Easy Forex
Fri, Mar 19 2010, 18:04 GMT

EUR/USD: No time for reversal yet by FXstreet.com Independent Analyst Team
Fri, Mar 19 2010, 15:27 GMT

Stock Traders focusing on Quadruple Witching by ForexHound.com
Fri, Mar 19 2010, 14:36 GMT

Discount rate discussions keeping floor under bonds by Interactive Brokers LLC
Fri, Mar 19 2010, 14:29 GMT

audusd, eurusd, gold, gbpusd, usdjpy

[ View All ]

Related content

Forex: EUR/USD ends week below 1.3550, first time in 10-months
FXstreet.com | Fri, Mar 19 2010, 20:31 GMT

Forex: Cable fell sharply on Friday
FXstreet.com | Fri, Mar 19 2010, 19:19 GMT

Forex: USD/JPY pulls back to 90.35
FXstreet.com | Fri, Mar 19 2010, 18:42 GMT

Forex: AUD up from lows and sleepy ahead weekend
FXstreet.com | Fri, Mar 19 2010, 17:25 GMT

Forex: EUR/USD finds support at 1.3500
FXstreet.com | Fri, Mar 19 2010, 16:24 GMT

audusd, eurusd, gold, gbpusd, usdjpy

[ View All ]

Interested in forex trading? forex brokerage firms!


ACM Advanced Currency Markets SA
Contact the broker/FDM
Open a demo account
FX Solutions LLC
Contact the broker/FDM
Open a demo account
GFT
Contact the broker/FDM
Open a demo account		Forex Club Financial Company
Contact the broker/FDM
Open a demo account		Capital Market Services UK Ltd
Contact the broker/FDM
Open a demo account

GET CASH BACK FOR YOUR TRADES!   Learn more about the Pip Rebate Program

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.