FOREXYARD: Forex News Blog

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• Precious Metal Trading Banned for US Investors?
• Swiss Trade Surplus Soars in June
• British Sales Data Signals Contraction
• Dismal Turnout from Euro Zone Flash Data
• Dollar Higher as Central Bank Policy Steals the Show
• FX Technical Analysis – USD/CAD Bearish Divergence

Precious Metal Trading Banned for US Investors? Posted: 23 Jun 2011 06:53 AM PDT Rumors are circulating this week that an article in the Dodd-Frank Act will bar US traders from participating in over-the-counter precious metals trading beginning 15 July 2011. The story began when Forex.com announced to its customers that its precious metals operations would be closing shortly due to regulatory pressure. The regulation apparently will not affect the trading practices of other countries; it will merely limit the influence the US investment establishment has over the volatile pricing of precious metals like gold, silver, and platinum. Several lawyers and economists claim that the law in question, Section 742(a) of the Dodd-Frank Act, however, does not in fact prohibit commodity trading in such a way. It merely limits who can participate in the commodity markets. Many analysts are claiming that Forex.com's maneuver is an overreaction to regulatory pressures and not representative of the international forex brokerage environment. Read more forex trading news on our forex blog.

Swiss Trade Surplus Soars in June Posted: 23 Jun 2011 06:44 AM PDT The trade balance report from Switzerland this morning revealed a sudden jump in its surplus, signaling far more exports than imports for the Alpine nation. The forecasted 1.68B surplus was trounced by an actual 3.31B gap between imports and exports. Recent downturns in Swiss economic data may be partially behind today's trade surplus reading. It has widely been argued that Switzerland's currency, the franc (CHF), is approaching, or breaching, record highs against several currency counterparts and this may in turn be gouging exports. However, the downtick in value recently may have boosted exporting capabilities to previous levels and boosted the nation's trade surplus. Read more forex trading news on our forex blog.

British Sales Data Signals Contraction Posted: 23 Jun 2011 06:34 AM PDT The Confederation of British Industry (CBI) published its realized sales report this morning reflecting the turndown in consumer optimism and spending. The news comes only days after many nations reported a contraction in retail sales and consumer spending levels. Expectations were for mild growth in the index, but the actual figure came out with a reading of negative 2, signaling a contraction in spending at the wholesale and retail level. The news has so far had little impact on the British pound, however, as most investors are focusing on flash services and manufacturing data out of the euro zone that is highlighting an impending dismal second quarter. The news only adds to the risk averse nature of today's trading environment. Read more forex trading news on our forex blog.

Dismal Turnout from Euro Zone Flash Data Posted: 23 Jun 2011 06:23 AM PDT This morning's string of reports from France, Germany and the broader euro zone disappointed many investors seeking an excuse to turn towards riskier assets. The climactic week we've seen left many wanting more information on what direction markets will turn and were expecting today's flash manufacturing and service numbers to fill in some gaps. Most of the day's reports were slightly below forecasts, suggesting what traders already knew: manufacturing is in decline this quarter. But the fall in services output from all but Germany gave cause for concern. Traders are beginning to see some downward movement in the riskier assets as a result of this morning's news. One can only wonder when the recovery will be solid enough to warrant a return to normal market conditions. Read more forex trading news on our forex blog.

Dollar Higher as Central Bank Policy Steals the Show Posted: 23 Jun 2011 06:08 AM PDT The dollar built on yesterday's late gains following Ben Bernanke's press conference. The USD was stronger versus the G7 currencies as the rally in the greenback continued into today's European session. Yesterday's FOMC statement was overlooked as the 2nd press conference given by Ben Bernanke following a Fed Funds Rate release stole the show. Bernanke was adamant in the Fed's expectations of a pickup in future growth numbers though the Fed did lower current year forecasts to 2.9% from 3.3% citing temporary factors. The Fed chief all but ruled out QE3 given the recent increase in inflation levels. Following the press conference the dollar began to gain and equities sold-off. This environment continued today into the European trading session with the EUR/USD hitting a new low for the week. Strength in the greenback can be attributed a combination of dollar shorts covering, disappointment by those expecting QE3, and further Greek woes weighing on market sentiment. The EUR/USD is quickly approaching on the 100-day moving average and the next support comes in at the June low of 1.4070. A break here could test the May pivot at 1.3970. Read more forex trading news on our forex blog.

FX Technical Analysis – USD/CAD Bearish Divergence Posted: 23 Jun 2011 03:08 AM PDT Technical signals show a potential resumption in the long term downtrend of the USD/CAD. The recent uptrend in the USD/CAD looks to have been capped at a series of technical levels. On June 16th the pair reached as high as 0.9875, a level that coincides with the 200-day moving average and the trend line falling from the mid-October high. The 14-day RSI displays a series of lower highs over the course of the recent uptrend. This price divergence signals weakening upside momentum and strengthens the case for a resumption of the downtrend. Support is found at the rising support line from the May 20th low which comes in today at 0.9680. A break here would test the 0.9510 support followed by the low at 0.9450. Any additional moves higher will run into resistance at the trend line as well as the June 16th high and the mid-March high of 0.9975. Read more forex trading news on our forex blog.

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