FOREXYARD: Forex News Blog

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• Swedish Consumer Confidence at 10-Year High; SEK Climbing
• EUR/SEK May be Poised for an Upward Correction
• GBP/CHF Bullish Correction May be in the Making
• BOJ Easing Program Fails to Halt the Yen’s Appreciation

Swedish Consumer Confidence at 10-Year High; SEK Climbing Posted: 31 Aug 2010 05:35 AM PDT The Scandinavian economies have seen a modest boom over the past several months in relation to their southerly neighbors. Europe's debt woes have persisted in making investments in the euro zone less stable, driving a large amount of investment into safe havens and other high-performance assets. The Scandinavian kroner appear to be on the safer side of currency investing since the value of the Swedish, Norwegian, and Danish kroner all gained against their European and American counterparts in recent trading. Steady oil prices have helped stabilize and strengthen the Norwegian krone, which is a commodity-linked currency since Norway is a net exporter of crude oil. Swedish interest rates have been raised this year, helping the value of the SEK increase in value as well. Sweden's recent 10-year-high consumer confidence figures have also played a prominent role in recent valuations. The USD/SEK has fallen towards 7.3450, but currently trades higher at 7.4125 due to gains made by the US dollar in late-trading hours. The EUR/SEK, on the other hand, has continued to move in favor of the krona for weeks now, hitting a recent low for the pair around 9.3600. If the level of investment in the Scandinavian economies persists on its present course, then the kroner should also continue gaining against their primary rivals. As Europe is due to see a few positive data releases, and as risk appetite appears set for an increase, we could see some kroner losses, however, towards the beginning of next week.

EUR/SEK May be Poised for an Upward Correction Posted: 31 Aug 2010 05:07 AM PDT The euro has been steadily declining against its Swedish counterpart for several months as risk aversion has dominated the marketplace. In the last two weeks alone, EUR/SEK has dropped almost 1500 pips. According to a number of technical indicators, this trend, while not quite over yet, may soon be coming to an end. We will be looking at the daily EUR/SEK chart, provided by Forexyard, for our analysis. The technical indicators being used are the Williams Percent Range, Stochastic Slow and Relative Strength Index (RSI). 1. The Williams Percent Range is currently below the -80 level. Anything below -80 is usually a sign that the pair is oversold. Traders can take this as a sign that an upward correction could occur in the near future. 2. The Stochastic Slow indicates bearish or bullish movement when the lines cross above or below the 80 and 20 line respectively. As can be seen, the lines are very close to crossing below the 20 level, indicating that an upward correction is very close to happening. 3. The Relative Strength Index is trading right around the 35 level on our chart. Typically anything below the 30 level indicates that the currency pair is in oversold territory. Traders will want to pay attention. If the RSI should drop below 30, a long position is advisable.

GBP/CHF Bullish Correction May be in the Making Posted: 31 Aug 2010 01:01 AM PDT The GBP has dropped significantly versus the CHF in the past 3 weeks, and it is currently traded around 157.35. And now as evident in the data below, the 4-hour chart is giving bullish signals, indicating that GBP/CHF pair might go up. Forex traders can take advantage of this impending movement by having their Entry Orders in place to capture this reversal. • Below is the 4-hour chart of the GBP/CHF currency pair. • The technical indicators that are used are the William Percent Range and Slow Stochastic. • Point 1: The Slow Stochastic indicates an impending bullish cross, signaling that the next move may be in an upward direction. • Point 2: The Williams Percent Range has peaked near at the -100 marker, which means that there may actually be a strong level of upward pressure. • The volatile downward movement which occurred prior to this upward correction has generated these indicators, and there appears to be room for this correction to continue. GBP/CHF 4-Hour Chart

BOJ Easing Program Fails to Halt the Yen’s Appreciation Posted: 30 Aug 2010 07:13 PM PDT The Bank of Japan pledged 10 trillion worth of new loans in the local currency to Japanese financial institutions. However, traders scoffed at this initiative and continued to bid up the yen. Perhaps only direct intervention by the BOJ will provide some respite for Japanese exporters who are feeling the sting of a strong local currency. Today's Major Data Releases: EUR – German Unemployment Change – 07:55 GMT Expected: -19K. Previous: -20K. Germany is Europe's largest economy and therefore has the most influence on the direction of the euro. CAD – GDP m/m – 12:30 GMT Expected: 0.2%. Previous: 0.1%. America's largest trading partner is reports Q2 GDP today. Expectations aren't high with only 0.2% growth forecasted due to the slump in oil prices. USD – CB Consumer Confidence – 14:00 GMT Expected: 50.7. Previous: 50.4. Consumer spending is the engine of the US economy. Strong numbers should be favorable for the greenback EUR/USD – The pair has broken out of a bearish flag pattern. The 1.2610 support should be tested today. A breach below this level could send the pair to the 1.2465 support level. Yen – Until the BOJ starts selling yen on the open market, there is no reason to be short on the Japanese currency. Spot Crude Oil – 3 days of consecutive gains were snapped yesterday, but this shouldn't stop the rising price. The next resistance level for spot crude oil rests at $75.50.

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