FOREXYARD: Forex News Blog

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• EUR May See a Much Needed Recovery Today
• Crude Oil Approaches $80 a Barrel
• EUR’s Trends to be Set by German ZEW Economic Sentiment
• EUR Continues Making Headway from Recovery
• Crude Oil Drops Close to $5 Since Friday
• European Interest Rates and American Employment Data on the Way
• EUR and Crude Oil Up at Week’s Start
• German and Euro-Zone ZEW Economic Sentiment Reports

EUR May See a Much Needed Recovery Today Posted: 23 Nov 2010 11:02 PM PST Following a long bearish streak versus the CAD over the past few days, the EUR seems to be headed for a bullish correction. Forex traders are advised to take advantage of this knowledge by going long on EUR/CAD now. Below is the 8hour chart of EUR/CAD. The technical indicators are the RSI, Slow Stochastic and Williams Percent Range. - A breach of the lower Bollinger Band is evident on the chart (1), indicating an imminent upward correction may be expected. - A bullish cross is evident on the Slow Stochastic (2), signaling the next move may be an upward correction.  - The RSI (3) signals that the price of this pair is currently heading into the oversold territory, suggesting upward pressure.  - Williams Percent Range (4) further supports the upward direction.

Crude Oil Approaches $80 a Barrel Posted: 28 Dec 2009 01:44 AM PST Now that Christmas is behind us, and New Years Eve is only at the end of the week, we have plenty of time to end this year with a big smile on our faces. Two thing happened last week that we can actually use this week: 1. The Dollar failed to extend its bullish trend against the Euro. Currently, the EUR/USD pair is testing the 1.4420 level. In case this level will be breached, the pair has the potential to jump up sharply. However, if the pair won’t manage to cross through this level, the EUR/USD could be on its way to the 1.4250 level again. 2. Crude Oil is climbing rapidly. After dropping below $73 a barrel crude oil then rose sharply and reached over $78 a barrel; marking a 3-week record. The reason for oil’s recovery is the positive data from the U.S. economy. This is creating optimism regarding global recovery, which of course means higher demand for energy products. A continuation of positive publications has the potential to boost crude oil further; potentially towards $80 a barrel. Also to take note of is the thin trading we should experience this week. Since some national banks will be closed due to the holidays, we will probably see a level of choppy trading from the lack of liquidity. Traders should be aware of this and place orders with caution. Make sure you don’t forget your Stops and Limits in this week’s trading.

EUR’s Trends to be Set by German ZEW Economic Sentiment Posted: 09 Nov 2009 04:10 PM PST The EUR’s trends for the upcoming day are likely to be set by the outcome of the German ZEW Economic Sentiment publication at 10:00 GMT. The forecast is 58.9, versus the 56.9 previous result. A result matching the forecast, or even better is likely to boost the EUR. Therefore, we could see the EUR/USD cross surpass the 1.5050 level. However, a result worse than this could lead to a very bearish EUR indeed. Traders, it is highly recommended that you open your positions in the EUR’s main crosses as soon as possible.

EUR Continues Making Headway from Recovery Posted: 16 Sep 2009 10:18 PM PDT The EUR strengthened against most of its major currencies yesterday as gains in stocks and commodities prompted investors to wade into riskier currency trades. Another developing trend is the recovery of Crude Oil. Since the Dollar began dropping against the EUR, oil has risen further and further. Currently traded around $72.80 a barrel, if the Dollar will continue to drop, Crude Oil could reach $75 a barrel by the end of the week. 8:30 GMT: GBP – British Retail Sales • It reflects the change in the total value of sales at the retail level. • The release of this indicator typically creates volatile GBP trading. • The result of this data release may set the pace for the GBP going into the rest of the week. • Traders may find good opportunities to enter the market following this vital announcement. 12:30 GMT: USD – U.S. Unemployment Claims • This indicator reflects the number of individuals who filed for unemployment insurance for the first time during the past week. • Better-than-expected results may push the Dollar slightly lower against the EUR. • If the results turn out to be lower than forecasts, then the Dollar may record a relatively bullish session in today’s trading. • Traders should focus their attention on this release, as this is expected to be the highlight of the day for forex traders.

Crude Oil Drops Close to $5 Since Friday Posted: 14 Sep 2009 12:16 AM PDT It is very clear that the most radical trend in the market at the moment is the sliding price of crude oil, which fell from its week high of $72.87 to $68.03. It seems that two main reasons have led to this turn of events. First – the extremely weak Dollar began to recover on Friday, affecting crude oil immediately. In addition, there is a sense of fear in the market that global economies are recovering slower than expected. There is a very strict correlation between economic conditions and oil’s value, and thus any change of sentiment regarding the larger economies will have a direct impact on crude oil’s prices. Today’s leading publications looks to be: • Euro-Zone Industrial Production (09:00 GMT): As an inflation gauge it tends to have an impact on the market. However, if the end result will be similar to forecasts (-0.3%) it’s not likely to create a lot of volatility in the market. Only a surprising result could move the major currencies. • President Obama Speech (16:00 GMT): President Obama is due to speak about the financial crisis at the Federal Hill in New York. It’s nearly impossible to predict this speech’s effect on the market as the subjects on whom he’ll speak are very uncertain. Either way, traders should be prepared for a sudden change in the market over the course of his speech, as immediate responses to his declarations might take place.

European Interest Rates and American Employment Data on the Way Posted: 02 Sep 2009 07:36 PM PDT Today may be one of the more volatile trading days this month. The Euro-Zone will release its recent decision regarding regional interest rates, and Britain, Australia, and the US will each publish a number of important data regarding trade balances, unemployment figures, and inflation. Traders do not want to miss out on these events. Gold prices experienced a strong upward spike yesterday at the opening of US markets, as the greenback faced a mild setback before correcting back into a bullish swing. The price of this commodity is now under downward pressure as the correction is underway. Traders may want to enter this trend as early as possible to capture this impending movement. Important events for today: 11:45 GMT: EUR – Minimum Bid Rate - This is the decision regarding the Euro-Zone’s short-term interest rates; one of the most important announcements for any currency. - Traders should expect the rates to be held steady, but any announcements about an adjustment to the economic growth forecasts could affect the EUR sharply. Expect volatility. 12:30 GMT: USD – Unemployment Claims - The number of people who have filed for unemployment insurance for the first time in the past week. - Since this report is coming out 1 day before Friday’s Non-Farm Payrolls data, it may result in traders pricing in their expectations for tomorrow’s release. This may generate a high level of USD volatility, which also affects commodity prices drastically.

EUR and Crude Oil Up at Week’s Start Posted: 24 Aug 2009 01:17 AM PDT The European currency experienced a very bullish session last week. The EUR gained significantly vs. a number of its most traded currency rivals. This includes the USD, GBP and the JPY. Crude Oil also went through a turbulent, but bullish trading week. The commodity has risen by over $5 since last week’s opening, and now stands at $74.30. Today, Crude is set to be key again as traders eye a weak USD to push-up Crude prices. Today’s Key Releases: 09:00 GMT: EUR – Industrial New Orders This measures the change in the total value of new purchase orders that are placed with manufacturers. Important to traders, as it's a leading indicator of economic production and economic health. Better than forecast end results are likely to push the EUR higher against its main currency pairs. 12:30 GMT: CAD – Core Retail Sales Measures the change in the total value of sales that are produced at the retail level (excluding autos). It is important to forex traders, as this figure is a leading indicator of the health of the Canadian economy. An optimistic end result is set to push the CAD higher against its main currency pairs.

German and Euro-Zone ZEW Economic Sentiment Reports Posted: 18 Aug 2009 12:12 AM PDT With yesterday’s sudden drop in global stock markets, the demand for safe-havens such as the USD and JPY returned temporarily, pushing those two currencies to 2-week highs against their rivals. However, during today’s early morning hours, this trend has reversed, implicating a return to risk appetite ahead of today’s inflation and economic sentiment reports from Europe. Important Events: 9:00 GMT: EUR – German and Euro-Zone ZEW Economic Sentiment reports: - A measure of economic confidence from the perspective of big investors and market analysts who are asked to rate their outlook for the next 6 months. - Leading gauge of market confidence which provides traders a look into potential future business activity. - Typically creates heavy volatility for the EUR. After yesterday’s fall, the EUR is due for a strong rebound and these reports could provide the necessary push to help this movement along. 12:30 GMT: USD – Building Permits and PPI reports: - These 2 reports will be released at the opening of the US markets and will offer a general look into the American housing market and general inflationary data. - While these figures carry less of a direct impact on the forex markets, they still have the potential to push trends further, especially if they provide positive signals that would help increase risk appetite. - If positive figures do emerge, the USD’s downward correction will likely gain momentum. If not, the USD could flatten out versus its major currency pairs.

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