FOREXYARD: Forex News Blog | |
- Unemployment Shifts in Europe Hold EUR Steady
- Swiss Economy’s Growth below Forecasts
- CAD Beats Out USD after GDP Data Shows Growth
- New Zealand Dollar Still Bullish after 1.1B Trade Surplus Reported
- Equities Gain Despite Sovereign Rating Downgrades
- Market Positioning Contributes to EUR/USD Rally
- Euro Stronger at Start of Shortened Trading Week
| Unemployment Shifts in Europe Hold EUR Steady Posted: 31 May 2011 05:19 AM PDT
The regional employment figures out of Europe have produced mixed results today. Germany's employment change revealed a contraction in jobs, but Italy published results which produced a modicum of optimism. The regional unemployment rate held steady at 9.9% and all of this data together has helped the EUR weather any bearish sentiment. Traders are looking to this week's employment data out of the United States as most investors look beyond fundamentals and debt woes to focus instead on the interest rate differentials between the two Atlantic giants. What impact this will have on the value of the EUR and USD this week is something many analysts are trying to speculate. Read more forex trading news on our forex blog. |
| Swiss Economy’s Growth below Forecasts Posted: 31 May 2011 05:15 AM PDT
Switzerland published its gross domestic product (GDP) this morning and put on display a sluggish figure for growth. Expectations were for a 0.6% uptick in GDP, but this morning's 0.3% figure had the harsh effect of pushing down on the Swiss franc (CHF) and weighing on the country's finances. The Swissie bounced off its recent high against the USD and is beginning to flatten out, and against the EUR and GBP the currency remains weaker. Traders may look to continue shorting the CHF this week if other data doesn't come relieve some of this new pressure. Read more forex trading news on our forex blog. |
| CAD Beats Out USD after GDP Data Shows Growth Posted: 31 May 2011 05:09 AM PDT
Yesterday's gross domestic product (GDP) report out of Canada revealed mild growth of 0.3% for the northern giant. With the US dollar in free-fall against most other currencies, the Canadian dollar has been able to capture some gains in light of this recent growth. Canada's economy was on watch in May considering the sharp downturn in industrial output and the fluctuating value of oil. Both factors were pulling heavily downward on the Canadian economy and some bearish sentiment had seeped into the Loonie's value. As the month comes to an end, traders appear to be favoring the CAD once more, albeit hesitantly. Read more forex trading news on our forex blog. |
| New Zealand Dollar Still Bullish after 1.1B Trade Surplus Reported Posted: 31 May 2011 05:06 AM PDT
The New Zealand dollar (NZD) has continued to push higher against all of its currency rivals following the release of trade balance data which revealed an N$1.1B trade surplus. The economy was expected a rise in its surplus of roughly half that amount. The boom in value to New Zealand's economy has the kiwi making strides and little seems to stand in its way. This morning's business confidence report also showed marked improvements, which has granted additional support to the island currency. Read more forex trading news on our forex blog. |
| Equities Gain Despite Sovereign Rating Downgrades Posted: 31 May 2011 04:45 AM PDT
With today's euro rally a few other important market events may have been overlooked by traders. Strong equity gains were seen in Asia despite a potential downgrade of the Japanese sovereign credit rating by Moody's Investors Service. The rating agency has put Japan on a review for a downgrade citing fiscal challenges and "a weak policy response" which could result in further difficulties for the Japanese government to reduce the nation's debt. Following the report the yen was sold versus the US dollar as the USD/JPY climbed to a high of 81.76 before falling back to 801.57. Resistance comes in at 82.00 from the previous trend line off of the May low. Support is at 80.70. Global equities were higher with Asian bourses leading the way. The Nikkei and the German DAX are trading up almost 2.00% and the London FTSE is up by 1.00% on the day. Fitch was the latest rating agency to reduce the sovereign debt rating of Cyprus, bringing Fitch in line with both S&P and Moody's ratings for the EU nation. Fitch noted a high exposure to Greek sovereign bonds including almost EUR 14Bn. As previously noted the euro is up not only versus the dollar but in the crosses. However, the buying did not carry over into the European trading session with the euro stalling at previous resistance levels. The EUR/USD is testing 1.4425 with potential follow through to 1.4590. The EUR/GBP failed to breach the 0.8750 level and traded back at 0.8726. Next resistance is 0.8840. The EUR/CHF is up sharply from its all-time low to 1.2280 with the next barrier at 1.2320. This afternoon the gains in the euro and in equities could continue should US consumer confidence numbers come in above market expectations. Chicago PMI and the Bank of Canada overnight rate may also add some volatility to this afternoon's New York trading session. Read more forex trading news on our forex blog. |
| Market Positioning Contributes to EUR/USD Rally Posted: 31 May 2011 01:48 AM PDT
Germany's willingness to compromise on the restructuring of Greek sovereign debt combined with market positioning has allowed for euro bulls to regroup. Today's early gains in the euro were a product of the potential compromise. Also contributing to the sharp gains this morning was a shift market positioning. Friday's CFTC Commitments of Traders report showed a more balanced market standing with leveraged funds shedding almost 9,500 long euro contracts. Today's rally in the EUR/USD above the 1.4400 mark may have forced some of those newly established short positions to cover as the market is currently positioned short euros and long on the USD. This morning's rally was capped below the 1.4425 resistance level off of the May 11th high. A break here and the EUR/USD could rally to the next resistance near 1.4750 from the late April/early May lows. Support comes in at the May 20th high at 1.4345 followed by the 100-day moving average at 1.4040. Read more forex trading news on our forex blog. |
| Euro Stronger at Start of Shortened Trading Week Posted: 30 May 2011 11:33 PM PDT
The euro jumped out to early gains against both the dollar and in the crosses during the overnight Asian session. This type of price action was seen last week when the euro came off of its lowest level in 10-weeks. EUR – CPI Flash Estimate y/y – 09:00 GMT CAD – BOC Overnight Rate – 13:00 GMT USD – CB Consumer Confidence – 14:00 GMT Read more forex trading news on our forex blog. |
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