InvestMacro Forex News

Source: ForexYard

A rebound in Italian bond prices has helped European equities recover some of yesterday’s losses. The EUR has also retraced some of its declines but the short term move may have only offered traders better prices at which to reenter short. This afternoon will bring trade balance data from both the US and Canada while events in Europe continue to dominate the headlines.

A successful Italian debt auction has helped equities and the EUR in the aftermath of yesterday’s declines but all is not well in Italy. The fiscally strapped nation paid an EMU high yield for 12-month Treasury bills. Also the 10-year Italian BTP traded higher this morning with the yield falling to 6.94%, a sign bond markets remain concerned over Italian finances.

The EUR/USD has moved higher to 1.3625, the 38% Fibonacci retracement level of yesterday and today’s move (1.3858 to 1.3483). The pair has once again turned lower from here. This retracement may have offered some traders better levels at which to reenter the downtrend. Support is at today’s low of 1.3483 and the 100-week moving average comes in at 1.3310. Resistance is higher at 1.3680 from the November 7th low.

This afternoon the BoE will announce its interest rate and Asset Purchase Facility. No changes are expected from the BoE.

The US and Canada will release their trade balance figures for September. There are no expected shocks to come from the reports as markets continue to focus on events in Europe. The USD/CAD has rallied on the back of USD strength. The pair failed to breach the 1.0263 resistance from October 18th but the MACD indicator is turning positive and a test of the 1.0656 high is possible.

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© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Source: ForexYard

Yesterday saw the first real volatility in the USD/JPY since the MOF intervened. This morning’s low coincides with a key technical level.

The pair has fallen as low as 77.50, a 50% Fibonacci retracement from the 75.55/79.50 intervention rally and there may be scope for additional moves lower in the pair. A break of the 77.45 support from the mid-October highs cold have the pair testing both its 61% Fibonacci retracement at 77.07 as well as its 55-day moving average at 76.94. The bearish tone could be reversed with a move back above 78.25.

Read more forex trading news on our forex blog.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Source: ForexYard

Last week’s relief rally that swept over financial markets has all but vanished with a move lower in risky assets driven by deterioration in the macro environment. In addition to the announced Greek referendum and disappointing Chinese/UK PMI data are weighing on the markets. European equities have been crushed with both the DAX and the CAC 40 down 5%.

The Greek referendum appears comical. After struggling for the past two years fending off a messy default, Greek Prime Minister George Papandreou invites the opportunity with one vote. As additional market commentaries and forex blogs have noted, the referendum could be a step in the direction of a Greek exit from the EMU. As such, the wheels of the EUR are beginning to come off with the EUR/USD down 2 big figures today. Support for the pair is the 61% retracement of the October move at 1.3565.

PMI data released from China and the UK did little to improve the global economic outlook. China’s Purchasing Manager’s Index fell to 50.4 in October, dangerously close to the 50 boom/bust level. The UK’s PMI also dropped to 47.4 from 50.8 in the previous month. Today’s Q3 GDP was stronger than expected at 0.5% on forecasts for 0.4%, but the GDP data is in the past and the PMI numbers are forward looking which does not bode well for the UK economy. Cable has held up a bit better as the GBP/USD has not receded quite as much of the October gains as its European counterpart. Support is seen at 1.5850 from the rising short term support line off of the October 12th low.

Read more forex trading news on our forex blog.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Source: ForexYard

With the monthly close coming today which caps an October that saw a sharp run up in the prices of risky assets the USD has caught a bid. $89 Bn of this bid likely came from the Japanese Ministry of Finance and increased criticism of the European agreement has most markets risk averse to start the week. The bankruptcy filing by MF Global may have played a part in the day’s movement as the broker is a major player in many fixed income and derivative markets including European bonds.

European data underperformed today with an unexpected increase in the Italian unemployment rate and disappointing German retail sales for the month of September which fell 0.14%. US data was also lower than expected with the Chicago PMI slipping to 58.4 from 60.4. Expectations were for a smaller decline to 59.2. On a bright note Canadian GDP was stronger than forecasted rising 0.3% in August on consensus forecasts of 0.2%. This week has a number of headline events with three central bank meetings (RBA, Fed, ECB) and key data points from both the UK (Q3 GDP) and the US (NFP).

The EUR/USD has come off of its Thursday high and is testing short term support at 1.3980. A break here and the pair could shed another 70 pips to the October 17th high of 1.3910. Cable looks stronger prior to tomorrow’s glut of UK data. Resistance comes in at last week’s high/200-day moving average at 1.6150 with the next major resistance at the late August high of 1.6450.

Read more forex trading news on our forex blog.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Source: ForexYard

The Japanese yen rallied against its main currency rivals last night, after a significantly smaller than expected new round of asset purchases was initiated by the Bank of Japan. The USD/JPY fell more than 40 pips after the announcement was made, eventually trading as low as 79.26.

The euro saw gains against several of its main rivals during morning trading, as expectations that Spain will soon request a bailout package led to some risk taking in the marketplace. The EUR/USD, currently trading around the 1.2940 level, has spiked more than 50 pips since 6:00 GMT.

Today, traders will want to note that US markets will remain closed due to Hurricane Sandy.

Main News for Today

Italian 10-year Bond Auction
• Should the bond auction signal that Italian borrowing costs have fallen, the euro may be able to extend this morning’s bullish run

US CB Consumer Confidence-Postponed
• The announcement of this indicator has been postponed due to the hurricane which is currently hitting the eastern United States

Read more forex news on our forex blog

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Source: ForexYard

The euro saw slight gains against the dollar in overnight trading, as investors continue to eagerly await a speech from Fed Chairman Bernanke tomorrow. The EUR/USD advanced just over 30 pips to reach as high as 1.2559. Currently the pair is trading at 1.2540. Meanwhile, the AUD/USD hit a one month low at 1.0316 last night. The aussie has seen significant losses in recent days due to an economic slowdown in China.

Main News for Today

Italian 10-Year Bond Auction
• Investors are watching the bond auction closely to see if Italian borrowing costs have gone down
• Solid demand for Italian bonds could result in risk taking in the marketplace, which could boost the euro during mid-day trading

US Unemployment Claims- 12:30 GMT
• The unemployment claims figure is expected to come in slightly lower than last week’s
• If today’s news comes in below the expected level, it may be a sign that the US economic recovery is accelerating and could result in dollar gains before Bernanke’s speech tomorrow

Read more forex news on our forex blog

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Source: ForexYard

The euro took losses against most of its main currency rivals in overnight trading, as poor demand at a Spanish bond auction yesterday led to risk aversion in the marketplace. The EUR/USD fell close to 30 pips and is currently trading at 1.2255, while the EUR/AUD is currently trading just above a record low at 1.1775. Crude oil maintained its recent gains, as supply side fears due to the ongoing conflict with Iran boosted the commodity. Crude is currently trading at $92.45 a barrel.

Main News for Today

Eurogroup Meetings- All Day
• Euro-zone finance ministers will be meeting to discuss the terms of an aid package to assist the Spanish banking sector
• If the terms of the aid package are agreed to, investor fears regarding the health of Spanish banks may be calmed, which could result in gains for the euro before markets close for the week

Read more forex news on our forex blog

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Source: ForexYard

Despite making gains during yesterday’s trading day, the Japanese Yen has reversed its performance to trade down against the majority of its major currency counterparts.

The Japanese currency weakened ahead of speculation that the Bank of Japan will expand  stimulus measures in order to fight deflation. The BoJ Meeting is scheduled for Friday.

The Yen slid 0.2 percent against the U.S dollar just before 10am Tokyo time after showing a 0.4 percent increase in the previous day.The Yen also performed poorly versus the 17-nation euro as it dipped by 0.1 percent to trade at 107.14 per euro.

Elsewhere, the euro slid versus the greenback as a result of Spain’s recent downgrade from A to BBB+.The decision by ratings agency Standard & Poor’s has added to concerns that the nations debt problem is worsening.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Source: ForexYard

Gold prices were boosted during Thursday’s early morning trading as a result of a weakening U.S Dollar.
The metal benefited from statements made by the Federal Reserve that they would carry out further monetary easing if required.

Despite the fact that the Federal Reserve did not officially announce another round of easing,the intentions for further easing has a positive affect on gold prices.

Silver prices were also given a slight boost as a result of the weaker U.S dollar as the metal for May delivery appreciated 39 cents to reach $30.75 per ounce.Platinum as well as Palladium also made gains thanks to the poor performing greenback, as the former climbed just over $10 whilst the latter rose $9.60 for June Delivery.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Source: ForexYard

Crude oil climbed to a one-week high after policy makers at the Federal Reserve mentioned that they speculate growth to move ahead at an accelerated pace. The rise comes after the commodity dropped as supplies in the U.S gained as well as a comment made by Iran’s envoy in Moscow claiming that the nation is discussing a proposal to delay the expansion of its nuclear program.

Crude for June Contract apppreciated 0.5 percent to $104.11 per barrel around approximately 2pm New York time. The commodity reached its highest level since April 17 after touching 104.57 a barrel. So far for the year, Crude Oil prices have appreciated 5.3 percent.

Wednesday saw the release of the weekly Crude Oil Inventories report which produced higher figures than expected. Crude Inventories climbed 3.98 million barrels to reach 373 million in the previous week as output appreciated to a 12-year high.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.