FOREXYARD: Forex News Blog | |
- New Zealand Dollar Expecting Volatile Move Monday Night
- Decline in German Manufacturing Disconcerting
- Inflationary Growth Slowing in Australia
- Forex Traders Extend Bearish EUR Bets
| New Zealand Dollar Expecting Volatile Move Monday Night Posted: 24 Oct 2011 07:39 AM PDT
With New Zealand banks on holiday Monday in observance of Labour Day, many are anticipating a volatile jump in the New Zealand dollar's (NZD) value come reopening later this evening. The New Zealand economy is releasing a highly important data release on consumer inflation (CPI). As this report comes on the coattails of a bank holiday, it is expected to generate a wider swing than usual as bank liquidity comes back online simultaneously with an impactful report. The Kiwi has been consolidating lately and this evening's data release could be what's needed to shake it loose and send it reeling. Traders interested in trying to capture this volatility for profit would do well to watch this evening's report. Read more forex trading news on our forex blog. |
| Decline in German Manufacturing Disconcerting Posted: 24 Oct 2011 07:36 AM PDT
Flash reports on the euro zone regional economy have shown manufacturing to be in decline. France did report a positive bump in manufacturing, but Germany and the broader region are indicating a decline. The reports on Germany are perhaps the most disconcerting of the data considering its recent importance in stabilizing the region. Germany reported a downtick in their flash manufacturing figure from last month's 50.3 to this month's 48.9. The indicator has begun to weigh somewhat on the value of the euro (EUR) as investors adjust their appetite for risk in a region which appears to be slowing on the manufacturing and industrial fronts. Read more forex trading news on our forex blog. |
| Inflationary Growth Slowing in Australia Posted: 24 Oct 2011 07:32 AM PDT
The quarterly report on the Australian producer price index (PPI) revealed a slow-down in growth from an expected 0.8% to a reading of 0.6%. The indicator suggests that price increases related to increased demand for produced goods has diminished somewhat as the Australian economy turns mildly sluggish. This report has so far dragged the Australian dollar (AUD) down mildly this morning, but speculators are turning their attention to the risk appetite of European nations this afternoon following the manufacturing and service reports out of the euro zone. Read more forex trading news on our forex blog. |
| Forex Traders Extend Bearish EUR Bets Posted: 24 Oct 2011 06:26 AM PDT
Speculators have increased their bearish bets against the EUR as the latest COT data show traders retain their negative view on the 17-nation currency despite signs of an agreement being put together to solve the euro zone sovereign debt crisis. Any positive sentiment that carried over from the weekend's EU economic summit was sapped following disappointing euro zone PMI data. Weak manufacturing numbers combined with stronger services data came from Germany while the exact opposite was the case with France. Services numbers from France were particularly weak and the combined euro zone surveys point to lower Q4 GDP data. Reports from this weekend's European summit show the insurance plan to guarantee new issued debt from Italy and Spain won out on German insistence or a French retreat. New cash injections into banks are also coming into fruition with financial institutions having the option to raise cash privately or face new funding options from a bank's respective government. Talk of a 50% haircut on Greek debt is gaining traction though any agreement will likely be finalized in the follow up EU summit to be held on Wednesday. The developments are seen as step in in the right direction and have helped to increase positive market sentiment. However, the disappointing PMI data sapped the good vibes. Today during the Asian forex trading session the EUR/USD made a new 7-week high at 1.3950, a level that has acted as an important support/resistance in May, July, and September. The next move higher could reach the 50% Fib retracement from the May to October move. Following the disappointing euro zone flash readings a pullback in the value of the pair was seen to 1.3820 which is the top of last week's consolidation pattern. A further move lower below 1.3650 would likely turn sentiment to the downside. While the EUR may still have more upside potential, according to the latest COT report shows the market has once again begun to increase bearish bets against the EUR. There was a two week period in late September/early October when forex traders paired their bearish positions against the EUR after positioning reached a peak and talk of a short squeeze led to gains in the EUR/USD. Shorts may continue to be pressured should Wednesday's EU summit instill additional market confidence.
Read more forex trading news on our forex blog. |
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