FOREXYARD: Forex News Blog

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ADP Non-Farm Payrolls on Tap Posted: 01 Dec 2010 12:05 AM PST The most significant trends from yesterday are surely the bearish euro and the bullish Japanese yen. In fact, both trends are actually triggered by the same catalyst – the European debt crisis.  The euro's downfall began after European official admitted that Ireland will have no choice but to seek financial rescue. And now, after Ireland finally sought financial rescue, which was pretty much confirmed by the euro-zone, the market fears that Portugal and even Spain will face similar difficulties in the future. On top of everything was Standard & Poor's warning to cut Portugal's credit ratings in response to the government failure to boost growth in the economy. It currently seems that as long as these concerns continue to dominate the market, the euro will continue to tumble, and risk-aversion will continue to rise – boosting the yen, a safe-haven currency, as a result. Here are today's leading news events: • 09:30 GMT, British Manufacturing Purchasing Managers' Index (PMI) – This is a survey of about 600 purchasing managers, who are asked to rate their current business conditions. If the end result will be higher than 55.0, the sterling might gain as a result. • 13:15 GMT, U.S. ADP – Non-Farm Employment Change – The ADP estimates that change in the number of employed people during the previous month, excluding the farming industry. Its forecast is considered to be quite reliable, and thus tends to have a large impact on the market. If the end result will beat forecast for 70K, the dollar might strengthen against its major rivals. • 15:00 GMT, U.S. ISM Manufacturing Purchasing Managers' Index – Very similar to the British manufacturing release. An end result of 57.0 or above might support the dollar.

DKK’s Correction versus USD Likely to Continue Posted: 01 Dec 2010 12:02 AM PST Following a strong bearish streak versus the USD over the past week, the DKK has begun a modest correction versus the greenback and it looks like the trend is likely to continue further. Below is the daily chart of USD/DKK. The technical indicators are the RSI, Slow Stochastic and Williams Percent Range. - A breach of the upper Bollinger Band is evident on the chart (1), indicating the downward correction is expected to continue further. - A bearish cross is evident on the Slow Stochastic (2), signaling the next move may be a downward correction.  - The RSI (3) signals that the price of this pair is floating in the overbought territory, suggesting downward pressure.  - Williams Percent Range (4) further supports the downward direction as it is still near the upper limit.

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