FOREXYARD: Forex News Blog | |
- Euro and Pound Rebound Following Interest Rate Announcements
- Oil Prices Climb above $111 a Barrel
- EUR Set to Maintain Gains to Close Out Week
| Euro and Pound Rebound Following Interest Rate Announcements Posted: 08 Apr 2011 05:40 AM PDT
Both the euro and the pound rebounded after yesterday's interest rate announcements as traders begin to price in further rate increases. After the 17-nation currency sold off following the interest rate increase, the euro rebounded sharply today as traders expect further interest rate increases in the euro zone. In response for the higher rate expectations, the EUR/USD rose to a new high at 1.4420 after opening the day at 1.4391. The January high of 2010 at 1.4578 should now be targeted. Looking at the pound, the GBP/USD rose in turn as traders expect an interest rate increase from the BOE in May. PPI m/m for March rose sharply to 3.7%, well above economists' expectations for an increase of 2.2%. The tone of the report was strengthened as the February inflation numbers were revised higher to 1.4% from 1.1%. After the release of the inflationary data, the GBP/USD was bid to a new high of 1.6426 from 1.6379. The 2010 high of 1.6460 is the next short term target for the Cable. US whole sale inventories are up at 14:00 GMT and at 14:15 FOMC member Richard Fisher will speak. Fisher is considered a hawk on inflation and thus the dollar may see support from his comments. |
| Oil Prices Climb above $111 a Barrel Posted: 07 Apr 2011 11:27 PM PDT
Crude oil prices rose significantly yesterday and peaked at $111.36 per barrel. However, the daily chart is suggesting that a recent upwards trend is loosing steam and a bearish correction is impending. Forex traders involved with commodities like this can take advantage of this knowledge by going short on crude oil now, and at a great entry price! • Below is the daily chart for crude oil by ForexYard. • The technical indicators used are the Slow Stochastic, RSI and Williams Percent Range. • Point 1: There is a "doji" candlestick formed in the chart, indicating that a reversal should take place. • Point 2: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction. • Point 3: The RSI signals that the price of this pair currently floats in the over-bought territory, suggesting downward pressure. • Point 4: The Williams Percent Ranges is showing that this pair is heavily over-bought and may be experiencing strong downward pressure. Crude Oil Daily Chart |
| EUR Set to Maintain Gains to Close Out Week Posted: 07 Apr 2011 11:05 PM PDT
Following yesterday’s widely expected euro-zone interest rate hike, the euro started today’s trading on a high note, hitting fresh highs against the US dollar and yen. With no significant news set to be released from the euro-zone or US, traders can expect the 17-nation single currency to maintain its current trend as we close out markets for the week. Today, attention will want to be given to a batch of Canadian news. The CAD has recently turned bullish against the US dollar. Whether or not it will continue this trend will likely be determined by the following news events: 11:00 GMT-Canadian Employment Change The monthly employment report is forecasted to show that Canada added around 27.8K jobs last month, a sharp increase over March’s figure. If true, traders can expect the loonie to go bullish against its main currency rivals, including the dollar and euro. 11:00 GMT- Canadian Unemployment Rate The indicator is forecasted to show that unemployment in Canada has dropped from 7.8% to 7.7%. If true, the CAD is likely to find further support and move up against its main rivals to close out the week. |
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