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- Crude Enjoys View from $107 before Tumbling Down
- Euro Zone Absence Felt in Today’s Market
- Swiss ZEW Reading Outperforms Region’s
- NZD/USD Testing Key Resistance Level
- US Inflationary Pressures to Remain Subdued
| Crude Enjoys View from $107 before Tumbling Down Posted: 14 Apr 2011 09:29 AM PDT
The steady climb of oil prices has witnessed some exciting peaks being reached. Last week oil prices topped $112 a barrel before rapidly falling back towards $106. Over the last two trading days, Crude Oil has gradually inched its way above $107, enjoyed the view for a few hours, and then came a tumbling down. Oil prices currently trade just above the $106 price level, which appears to represent a significant support line for short-term and technical traders. The market appears disinclined to accept higher oil prices, but speculators appear to be pushing up on the price after any negative news gets published out of the United States. Today's disappointing PPI figures had many commodity traders betting long with the anticipation of a dip in USD values. When the dip was not forthcoming, crude lost its legs and tumbled face first back towards the $106 level. Without any additional support it appears as though crude prices will continue to fluctuate in such manner heading into next week. |
| Euro Zone Absence Felt in Today’s Market Posted: 14 Apr 2011 09:19 AM PDT
Normally the absence of economic news from a given region (think Asia) has little impact on its currency values. That doesn't seem to be the case today. Europe's absence from the economic calendar today is being felt in the form of wider-than-normal swings in value for European-based currencies. Amid a wide bombardment of economic indicators from the United States, Britain, Canada and even Australia, traders are gauging how certain currencies are faring given global conditions at the moment. But a sudden absence of one of the largest players, mid-week, appears to have unsettled a number of investors. We have seen mildly erratic behavior which some have explained as having to do with the aforementioned economic bombardment, and partially from the kick-off of today's G7 summit, but indecisiveness seems present as well. The value of the EUR has come under pressure recently due to an ebb and flow of risk aversion and by simply producing a series of poor data releases. Today's absence from the market has only given more weight to speculators to toy with market values in an already highly volatile trading session. |
| Swiss ZEW Reading Outperforms Region’s Posted: 14 Apr 2011 08:40 AM PDT
This week's report from the Zentrum fur Europaische Wirtschaftsforschung (ZEW) was hardly digestible in regards to Germany and the euro zone. Both reports failed to meet expectations and the euro came under solid resistance as a result of their publication. What this meant for regional consumer sentiment has yet to be placed in context. Switzerland's ZEW reading, to the contrary, came out well above last month's reading. Showing significant pessimism last month, Swiss institutional investors and analysts have recently rated their 6-month outlook more optimistically. The ability of the Swiss banking and financial sectors to outperform regional neighbors has allowed the Swiss franc (CHF) to capture a large share of investor flight from recent binges of risk aversion. As traders witness a scaling back of risk flight in favor of higher yielding assets, the franc still appears to be making gains against its currency rivals. Such positive reports as this morning's ZEW reading will only help sustain the CHF's bullish momentum. |
| NZD/USD Testing Key Resistance Level Posted: 14 Apr 2011 01:47 AM PDT
The NZD/USD is encroaching on a significant resistance level that if broken should spur further bids. Earlier today the New Zealand dollar reached as high as 0.7955 and is currently testing the October high of 0.7975. A weekly close above this resistance level will target the Q1 2008 high at 0.8210. To the downside, the previous resistance levels at 0.7830 and 0.7630 should turn into supports. The rising uptrend off of the 2009 and 2011 lows comes in this week at 0.7200, followed by 0.7117.
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| US Inflationary Pressures to Remain Subdued Posted: 14 Apr 2011 12:17 AM PDT
A pickup in risk appetite has been noted with gains yesterday in European equity markets. Combined with a weaker dollar, this has benefited higher yielding currencies such as the Aussie dollar and the Kiwi. Today's release of the US Producer Price Index should show US inflationary pressures remain subdued, keeping the US dollar on its back foot. Yesterday's trading had the FTSE 100 finishing higher by 0.77% while the DAX moved up by 1.06%. The increase in risk appetite along with a weaker US dollar should continue to bring strong bids to the Aussie dollar and the New Zealand Dollar. Key Economic Data Releases USD – PPI m/m – 12:30 GMTExpectations: 1.1%. Previous: 1.6%. USD – Unemployment Claims – 12:30 GMT |
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