Has the ‘Gold Bull’ finally arrived?

By Adam Hewison – Is this the Gold move we’ve all been waiting for?

Is the big move finally here? With so many stops and starts in the gold market, it’s hard to know which way is up.

We’re only going to leave this online for a short time. Given the state of the current economy, things move quickly. If the video isn’t watched soon, it won’t be of any use to you. So I urge you to take a few minutes to watch the possible outlooks for gold on the upside.

There is no need to register for this video and of course you can watch it with my compliments. I highly recommend watching this video today otherwise you risk missing out on what could be the move of the year.

Enjoy the video:

Watch the New Video Here…

All the best,

Adam Hewison
President, INO.com
Co-creator, MarketClub

European and British Interest Rate Announcements on Tap

Source: ForexYard

The Bank of England (BOE) and the European Central Bank (ECB) are set to release their policy statements regarding short-term interest rates at 11:00 and 11:45 GMT respectively today. These announcements always generate heavy market volatility and forex traders should be on guard today, ready to capture these fantastic money-making opportunities!

Economic News

USD – Greenback Dives on Bullish Equities

The U.S. Dollar fell on Wednesday toward its lowest point this year versus the EUR, giving up gains stemming from a decline in U.S. equities and a disappointing report from the U.S. services sector. The Dollar drifted sideways against the EUR, which was steady from late New York on Tuesday at $1.4411. The USD also fell 0.2% against the Japanese yen to 95.02 from 95.25 yen on Tuesday.

The greenback has slid broadly since March as riskier assets, such as equities and commodities, rallied on improving economic data, eroding demand for the safe-haven USD. The Dollar’s inverse relationship with investor appetite for risky assets has reasserted itself in recent weeks, analysts have said. The USD has also lost ground as equities posted a strong global rally and investors rushed into assets perceived as more risky.

Recent manufacturing data from the United States and China has spurred investors to sell U.S Dollars and invest in riskier currencies and assets, as did a smaller-than-expected contraction in the U.S. economy in the 2nd quarter. But the trend to sell the Dollar on the view that the worst of the world recession is over has become quite deeply rooted, making it tough for the Dollar to rally much.

EUR – EUR Little Changed Ahead of ECB Rate Decision

The EUR extended last week’s advance against the Japanese yen as retail sales in the 16-nation Euro-Zone rose 0.3% in June following a 0.4% decline in May. The EUR and Sterling were up slightly vs. the Dollar for the day, as investors awaited policy decisions by the European Central Bank (ECB) and the Bank of England (BOE) on Thursday. Late Wednesday, the EUR was little changed at $1.4414 but earlier rose to $1.4446, its highest level sine December.

The British pound climbed to a 9-month high against the Dollar after services and manufacturing reports added to evidence that the recession is easing and Lloyds Banking Group Plc. said provisions for bad loans peaked. The U.K. currency climbed 0.4% to $1.7008, the strongest level since Oct. 21. The Pound also advanced 0.4% vs. the EUR to 84.75 pence.

Next up for currency investors are today’s policy decisions from the BOE and ECB. The European Central Bank (ECB) appears certain to keep its Interest Rate at a record low of 1% as it waits to see the impact of efforts so far to revive the economy and credit flows.

JPY – Yen Falls for First Time in 3 Days

The Japanese yen fell for the first time in 3 days versus the EUR and the Dollar as Asian stocks advanced on speculation Japanese companies will report stronger earnings, reviving demand for higher-yielding assets. The yen weakened to 136.96 per EUR from 136.79 yesterday. Japan’s currency also fell to 95.05 per Dollar from 94.97.

Japan’s currency weakened against 14 of its 16 major counterparts after a Japanese report showed domestic investors bought more foreign equities than they sold for a 7th week, suggesting a return of the carry trade.

However, losses in the Yen may be tempered after U.S. reports yesterday added to doubts the recession in the world’s largest economy is easing, boosting demand for Japan’s currency as a refuge.

Crude Oil – Crude Oil Boosted by Dollar’s Weakness

Crude Oil ended higher Wednesday, reversing earlier losses late in the session, as investors focused on Dollar weakness and shrugged off a government report showing a rise in inventories. Energy markets have been looking to broader economic data for signs of an end to the recession and a potential rebound in Oil demand.

Optimism has helped lift Crude from below $33 a barrel in December, well off record highs near $150 reached in July 2008. Further support has come from a series of output reductions agreed to by the Organization of the Petroleum Exporting Countries (OPEC) last year.

Crude prices were also bolstered by a drop in U.S. distillate inventories and optimism that a slowdown in U.S. private job losses in July could signal a gradual turnaround in the economy. The Dollar weakness has been supportive for Oil prices; and as a result of the USD’s new lows, a further increase in Oil prices above $74 a barrel seems almost inevitable.

Technical News

EUR/USD

This pair’s flat range-trading continues despite technical indicators. With bearish crosses on the hourly and 4-hour MACD, as well as on the daily Slow Stochastic, the impending movement appears to be bearish. Waiting for the downward breach and then jumping in as early as possible may be the best strategy today.

GBP/USD

The price of this pair appears to be floating in the over-bought territory on the daily RSI, indicating downward pressure. The bearish crosses on the hourly and 4-hour MACD, and the daily chart’s Slow Stochastic supports the notion that a downward movement may be imminent. Going short with tight stops may be today’s preferable strategy.

USD/JPY

This pair appears poised for a volatile movement as all indicators point to neutral and the Bollinger Bands on the 4-hour and daily charts are beginning to tighten. The mid-term volatility of this pair will likely hold it inside its current range-trading pattern. As such, buying on lows and selling on highs would be a wise choice today.

USD/CHF

There appears to be fresh bullish crosses on the hourly and 4-hour MACD, and the daily chart’s Slow Stochastic, highlighting an impending bullish movement. Going long could be a sound strategy.

The Wild Card – AUD/USD

The Bollinger Bands on the 4-hour chart appear to be tightening, signaling an impending volatile movement. With the price cascading down from the over-bought territory on the daily chart’s RSI, and a fresh bearish cross on the daily Slow Stochastic, this pair seems poised for a sharp drop in value today. The doji candlestick formation on the daily chart supports this notion. Forex traders should try to not miss out on this great opportunity and begin placing their short positions on this pair as soon as possible.

Forex Market Analysis provided by Forex Yard.

© 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.

US ADP Employment declines more than expected in July. US Dollar trades higher in FOREX.

By CountingPips.com

U.S. employment data was released today in the form of the ADP National Employment Report and showed that U.S. private employment declined by more than expected in July. The 250150allcurrenciesnonfarm private employment fell by 371,000 workers in July following the revised June decline of 463,000 jobs. June’s data was revised downwards from the original release of 473,000 jobs lost.

July’s data was worse than the decline of 350,000 jobs the market forecasts were expecting.  A silver lining in the data was that July had the smallest monthly job decline since October 2008.

The service-providing sector showed the largest decline for the month with a loss of 208,000 jobs while the goods-producing sector fell by 169,000 jobs. The manufacturing sector had a loss of 99,000 jobs while construction jobs fell for the 30th straight month with a decline of 64,000 workers. All size of businesses continued to cut jobs in July as large businesses lost 74,000 jobs, medium sized businesses shed 159,000 jobs and small businesses dropped 138,000 jobs.

The market-moving US Nonfarm Payrolls report for July is to be released Friday at 12:30 pm GMT with market forecasts predicting an approximate decline of 328,000 jobs after June’s 467,000 decrease.

US Dollar gains in forex trading.

The U.S. dollar has been stronger in forex trading today against the other major currencies this morning in the US trading session.  The euro, Swiss franc, Australian dollar, Canadian dollar and New Zealand dollar have all declined versus the American currency while the Japanese yen has increased.

The EUR/USD pair has declined slightly from today’s opening rate of 1.4411 dollars at 00:00GMT to trading to 1.4370 at 10:51 am EST in the morning of the U.S. trading session according to currency data by Oanda.

The GBP/USD is currently almost unchanged from today’s opening level at 1.6946 as this currency pair trades at 1.6944.

The US dollar is falling slightly so far today against the yen as the USD/JPY opened today at 95.09 and has declined to trading at 94.94.

The dollar is increasing today versus the Swiss franc as the USD/CHF has gone from the 1.0594 opening rate to trading at 1.0637.

The dollar has increased today against the Canadian loonie and looking to increase two days in a row. The USD/CAD has advanced to trading around the 1.0746 level today after opening at 1.0725.

The Australian Aussie has fallen versus the US dollar today as the AUD/USD has declined to the 0.8379 level after opening at 0.8441. The New Zealand kiwi has also declined against the dollar as the NZD/USD has reached the 0.6722 level today after opening the day at 0.6734.

AUD/USD Chart – The Australian Dollar falling against the US Dollar this morning in forex trading. The Aussie had been in a distinct uptrend on the hourly chart in the first half of this week.

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USD’s Bearishness at an End? Today’s News May Tell

Source: ForexYard

With a chain of bearish trading sessions, the US Dollar has been bouncing the forex market up and down lately. With increased risk appetite and growing market optimism, market conditions are allowing traders to pull away from the safety of the USD. On the other hand, however, today’s housing, manufacturing and employment data from Britain and the United States will provide enough market news to halt current trends and create short-term reversals, or push current trends even further. If we see negative data across the boards, the USD may very well return to a bullish posture as risk aversion returns.

Economic News

USD – USD Bearish Sentiment Continues Prior to Employment Data

While the aggressive Dollar sell-off which started Monday stalled slightly Tuesday, the USD continues trading near the weakest level against the EUR this year ahead of the release of the Non-Farm Employment Change report, which is predicted to show U.S. companies eliminated fewer jobs in July, reiterating that the recession is coming to an end. The Dollar is trading at 1.4410 per EUR as of this morning, and is at 95.00 Yen, down from the 95.37 Yen seen on Monday.

Investors’ risk appetite persists as the flow of better than expected economic data continues. Tuesday’s release of the Pending Home Sales report showed an increase of 3.6% in June, which was much better than the 0.7% expected by economists. This shows that the housing market, which was at the center of the turmoil, is stabilizing, signaling an impending economic recovery in the U.S.

Looking ahead to today, the release of the ADP Non-Farm Employment Change report at 12:15 GMT, and the ISM Non-Manufacturing PMI at 14:00 GMT, is expected to have great affect on Dollar sentiment; with better than expected results likely intensifying the current bearish trend for the USD.

EUR – Signs of Global Recovery Continue to Boost the EUR

While the EUR lost tiny amounts of its gains since Monday, it still maintains most of its bullish momentum. Tuesday afternoon, the EUR was at $1.4400 from a 2009 high of $1.4445 seen Monday afternoon. The Pound was at $1.6936 from $1.6928.

The rally continued despite stock markets remaining flat throughout most of the day as investors continued seeing strong enough signs of a global recovery and maintained demand for riskier currencies.

Looking ahead to today Britain will dominate the news releases from Europe with the Halifax HPI due to be released at 6:00 GMT and the Manufacturing Production and Services PMI at 8:30 GMT. Better than expected results might be able to push the Pound above $1.7000.

For the EUR, $1.4500 should be the goal, as breaking this level might spur another rally; with no major news releases from the Euro-Zone, the EUR movements will largely depend on news releases from the U.S., Britain, as well as equity markets.

JPY – Yen’s Bearish Sentiment Continues

The Yen received a slight boost Tuesday as a drop in global equities ahead of the New York session spurred demand for the safety of the Japanese currency. However, following a release of better than expected U.S Pending Home Sales data the optimistic mood returned, as did demand for riskier assets.

A late rally in the stock markets further enhanced risk appetite and the sell-off of the JPY. The Yen traded at 137.08 against the EUR and was little changed at 95.22 versus the Dollar.

With the release of several economic indicators today which are expected to show continuous improvement in global economic conditions, the bearish sentiment on the JPY is likely to continue.

Crude Oil – Crude Prices Rise as Stocks Rally for 4th Consecutive Day

Crude Oil for September delivery rose as much as 45 cents, or 0.6%, to $71.87 a barrel following a late rally in U.S stocks after pending sales of existing homes increased more than forecast in June. Oil also benefited from the weak USD as Oil prices tend to have an inverse relationship with Dollar strength.

A drop in the U.S. currency boosts the appeal of commodities as a hedge against inflation. Furthermore, the release of U.S Crude Oil Inventories today at 14:30 GMT is expected to show a decline in Crude stockpiles. Along with this inventories data, oil price movements will continue to depend largely on equity levels since this rally largely depends on equities maintaining their current momentum.

Technical News

EUR/USD

This pair’s continued bullish movement has resulted in a number of mid- and long-term indicators pointing in the direction of a downward correction. With a bearish cross on the daily Slow Stochastic, the 4-hour RSI in the over-bought territory, and the impending bearish cross on the 4-hour MACD, the notion of a downward move indeed seems to be in the making. A good strategy today may be waiting for the downward breach then joining the trend as early as possible.

GBP/USD

There is a fresh bearish cross on the daily Slow Stochastic, signaling a bearish correction may be in the making. The price currently floats in the over-bought territory on the 4-hour RSI, and the 4-hour MACD has a fresh bearish cross as well. Going short might not be a bad choice today.

USD/JPY

This pair appears to be providing mixed signals today. The hourly chart has an impending bullish cross on the Slow Stochastic and the price has just entered the over-sold territory on the hourly RSI. On the other hand, the 4-hour Slow Stochastic shows a bearish cross, signaling an impending downward move. Waiting for a clearer signal may not be a bad move today.

USD/CHF

With bullish crosses on the hourly and 4-hour MACD, and daily Slow Stochastic, this pair shows very clear signs of an impending bullish movement. The 4-hour RSI also shows the price floating in the over-sold territory, supporting the upward notion. Going long appears to be today’s preferable strategy for this pair.

The Wild Card – Gold

A bearish cross has recently occurred on the daily Slow Stochastic for this commodity, highlighting an impending downward movement. The bearish cross on the hourly MACD, and impending bearish cross on the 4-hour MACD both support this notion. Gold and forex traders would be unwise to miss out on an opportunity to capture profits from this volatile commodity. The signs are clear that Gold is anticipating a bearish movement; going short may be a good idea today.

Forex Market Analysis provided by Forex Yard.

© 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.

Fundamental Outlook at 1400 GMT (EDT + 0400)

By GCI Fx Research

The euro moved lower vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.4365 level and was capped around the $1.4430 level.  The common currency retracted some of yesterday’s gains that saw the pair propelled to its highest level since October 2008.  In Fed news, traders are talking about tensions between the Obama administration and the Fed, SEC, and FIDC about the government’s plan to modify regulatory oversight over the agencies.  Many data were released in the U.S. today. First, the June employment cost index was up 0.4% q/q and 1.8% y/y. Second, June existing home sales improved for a fifth consecutive month, up 3.6% m/m, up from the revised 0.8% climb in May, while the June pending home sales index was up 9.2% y/y from a revised 5.4% in May.  Third, June personal income was off 1.3% m/m, a sharp turnaround from the revised May print of 1.3% while June personal spending was up 0.4%.  Fourth, the PCE deflator was off 0.4% y/y, down from a revised -0.3% y/y in May. The PCE core PCE index was up 0.2% m/m from 0.1% in May and up 1.5% y/y from 1.8% in May.  In eurozone news, most traders expect the European Central Bank will keep borrowing costs unchanged on Thursday when the Governing Council meets. Data released in the eurozone today saw EMU-16 July producer prices up 0.3% m/m and decline 0.6% y/y, the largest annual decline since at least January 1982.  Euro bids are cited around the US$ 1.3900 figure.

¥/ CNY

The yen depreciated marginally vis-à-vis the U.S. dollar today as the greenback tested offers around the ¥95.45 level and was supported around the ¥94.35 level. Japanese finance minister Yosano indicated he is not concerned about recent moves higher in long-term interest rates, characterizing them as “marginal.”  Economics minister Hayashi reported it is premature to know whether or not Japan has fallen back into deflation because core price declines are modest.  Data released in Japan overnight saw the July monetary base climb 6.1% y/y.  Also, it was reported Bank of Japan has purchased ¥38.10 billion of equities from banks as of 31 July as part of its ¥ 1 trillion quantitative easing program that will run through April 2010.  The Nikkei 225 stock index climbed 0.22% to close at ¥10,375.01.  U.S. dollar offers are cited around the ¥104.15 level.  The euro moved lower vis-à-vis the yen as the single currency tested bids around the ¥135.95 level and was capped around the ¥137.70 level.  The British pound moved lower vis-à-vis the yen as sterling tested bids around the ¥160.00 figure while the Swiss franc moved lower vis-à-vis the yen and tested bids around the ¥88.95 level. In Chinese news, the U.S. dollar gained ground vis-à-vis the Chinese yuan as the greenback closed at CNY 6.8315 in the over-the-counter market, up from CNY 6.8288.

Daily Market Commentary provided by GCI Financial Ltd.

GCI Financial Ltd (”GCI”) is a regulated securities and commodities trading firm, specializing in online Foreign Exchange (”Forex”) brokerage. GCI executes billions of dollars per month in foreign exchange transactions alone. In addition to Forex, GCI is a primary market maker in Contracts for Difference (”CFDs”) on shares, indices and futures, and offers one of the fastest growing online CFD trading services. GCI has over 10,000 clients worldwide, including individual traders, institutions, and money managers. GCI provides an advanced, secure, and comprehensive online trading system. Client funds are insured and held in a separate customer account. In addition, GCI Financial Ltd maintains Net Capital in excess of minimum regulatory requirements.

DISCLAIMER: GCI’s Daily Market Commentary is provided for informational purposes only. The information contained in these reports is gathered from reputable news sources and is not intended to be U.S.ed as investment advice. GCI assumes no responsibility or liability from gains or losses incurred by the information herein contained.

Pending Homes Sales rise for fifth straight month. Dollar mixed in Forex Trading today.

By CountingPips.com

U.S. Pending Homes sales rose for the fifth straight month in June according to the monthly report produced by the National Association of Realtors. The NAR report showed that pending home sales contracts signed by buyers increased 3.6 percent in June following a revised 0.1 250150bluechartspercent increase in May. June marked the first time since July 2003 that pending home sales had increased for five consecutive months. On an annual basis, the pending home sales level is 6.7 percent above the June 2008 level.

Market forecastors had predicted the sales data would show an increase of approximately 0.7 percent for the month.

NAR chief economist Lawrence Yun commented in the report about the increased sales figures this month, “Historically low mortgage interest rates, affordable home prices and large selection are encouraging buyers who’ve been on the sidelines.  Activity has been consistently much stronger for lower priced homes.”

Contributing to the sales rise for June was a 7.1 percent monthly gain in the South while sales of new homes in the West advanced by 2.9 percent. Pending home sales edged up by 0.4 percent and by 0.8 percent in the Midwest.

US Dollar mixed in Forex Trading today.

The U.S. dollar has been mixed today in forex trading against the other major currencies since the start of the day at 00:00GMT. The American currency has been trading higher versus the British pound, Australian dollar, New Zealand dollar and Canadian dollar while the dollar is lower versus the Japanese yen and trading almost unchanged against the euro and Swiss franc.

The euro is trading virtually unchanged versus the dollar so far today as the EUR/USD has  from its 1.4390 opening at 00:00 GMT to trading at 1.4391 in the U.S. trading session at 3:12pm EST according to currency data from Oanda.

The British pound has declined slightly against the USD as the GBP/USD has gone from its 1.6951 opening exchange rate to trading at 1.6924 usd per gbp. The dollar has edged down versus the Japanese yen and trades at 95.21 after opening at the day at the 95.35 exchange rate.

The dollar has gained versus the Canadian loonie as the USD/CAD trades at the exchange rate of 1.0732 after opening the day at 1.0670.

The dollar is trading almost unchanged against the Swiss franc as the USD/CHF trades at 1.0611 after opening at 1.0614 today while the dollar has been slightly stronger against the Australian dollar and versus the New Zealand dollar. The AUD/USD trades at 0.8428 after a 0.8446 opening while the NZD/USD trades at 0.6553 today after opening at the exchange rate of 0.6577.

USD/CAD Chart
– The US Dollar advancing today versus the Canadian Dollar in forex trading as the USD/CAD reversed some of the gains it lost yesterday.

8-4usdcad

Fibonacci Analysis of Gold and Crude

By Adam Hewison – You may have heard about Fibonacci, the man who discovered a set of numbers which have been found to have a major affect on the market. So who is this Fibonacci fellow and why are his findings so important in the market place?

The mathematical findings by this thirteenth century Italian man has yielded a useful tool which is used in technical analysis and by scientists in a large array of fields.

In our new short video, I will look at gold and also the crude oil market using MarketClub’s Fibonacci tool. I think you will be surprised and shocked at just how accurate and up-to-date this dead mathematician’s work is in today’s markets.

This is such an important video that we only want to leave it online for a short time. We urge you to take 4 minutes and learn the Fibonacci secret to the markets.

There is no need to register for this video and of course you can watch it with our compliments, but you must act today otherwise you risk missing out on this key element to the market.

See the New Video Here….

Enjoy the video and please give us your feedback on this blog.

All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub

Greenback Touches 2009 Low vs. Currency Basket

Source: ForexYard

The Dollar fell to its lowest levels this year on Monday after the Institute for Supply Management’s index on U.S. manufacturing improved more than expected in July. Along with some better earnings reports from foreign banks, the data supported equity markets and spelled trouble for the U.S. currency because investors no longer desire its safe-haven status.

Economic News

USD – Dollar Tumbles on Optimistic Manufacturing Data

The U.S. Dollar tumbled on Monday after the publication of far better than forecast ISM Manufacturing PMI from the U.S. economy. The reading rose to an 11 month high of 48.9, notably higher than the forecasted figure of 46.4. Construction data in the U.S. also showed some big improvements. This led to a drop in the demand of the USD, as risk appetite grew throughout the day. The greenback tumbled against virtually all of its major currency pairs, as traders feel that the recession is nearly over, and economic growth will soon return to the U.S. economy. As a result, the USD fell to its lowest level in 7 months.

The EUR/USD rose to as high as 1.4444, before closing at 1.4421. This was the USD’s weakest rate against the European currency since the middle of December last year. The Dollar fell by about 250 pips vs. the British Pound to 1.6980. This was the Dollar’s lowest level vs. the GBP since about the middle of October last year. One of the only currencies that the Dollar gained ground against yesterday was the Yen. The USD/JPY cross increased by about 70 pips to the 95.43 level, as demand for higher yielding assets increased throughout much of Monday’s trading.

Looking ahead to today, forex traders can expect much of the same volatility in the market. The Dollar is set to move a lot against its major pairs, such as the GBP, EUR, JPY, and CAD. This is likely to occur, as investors continue to trade on much of yesterday’s data. Additionally, the U.S. market is set to be the main market mover again with the with the release of Personal Spending and Personal Income data at 12:30 GMT, and the publication of U.S. Pending Home Sales at 14:00 GMT. In order to take advantage of the very volatile forex market, it’s advisable that you open your USD positions now.

EUR – EUR Soars to 7 Month High versus the USD

The European currency soared to a 7 month high versus the USD yesterday, as optimistic global manufacturing data from the Euro-Zone, U.S., Britain and China led to a decline in demand for the safe-haven USD. In addition, the British Pound jumped against the Dollar, as the British economy showed really clear signs that it may rise out of recession by the end of the 3rd quarter. This was following the publication of very positive British manufacturing data, and the much better than expected pre-tax profits of HSBC and Barclays Bank.

The GBP/USD pair rose by over 250 pips in Monday’s trading to the 1.6980 level. This may also have been helped as the USD may have come under increasing pressure from the rise in Oil and other commodity prices. The EUR/USD cross climbed by 190 pips to 1.4421, the highest level since December 2008, just weeks after the collapse of Lehman Brothers. Both the EUR and GBP rose against a string of other currencies, such as the JPY, as demand for higher yielding assets rose, along with risk appetite, as yesterday’s trading dragged on.

Tuesday’s trading is set for another action packed day. The 2 most important releases from Britain will be the Construction PMI at 08:30 GMT and Nationwide Consumer Confidence figures at 23:01 GMT. From the Euro-Zone, we can expect the PPI figures at 09:00 GMT. These releases are expected to help drive market volatility for the EUR and GBP throughout the trading day. Furthermore, it is advisable to follow economic events coming out of other leading economies, such as the U.S. as they are likely to also impact these 2 currencies.

JPY – JPY Falls against All the Major Currencies

The Japanese Yen fell against all of its major currency pairs yesterday, following the release of optimistic manufacturing data from the world’s leading economies. This helped push-down demand for lower yielding assets such as the JPY and USD, and push-up demand for high yielding assets such as the GBP and EUR. Also, as the day dragged on, so did risk appetite. This led to the sell-off of the JPY and the buy-up of foreign assets. Analysts said this is trend is likely to continue as the global economy continues to recover.

The JPY fell by 70 pips against the USD to the 95.43 mark. The Japanese currency plummeted to 137.38 from 134.84 on Monday vs. the EUR. Against the British Pound, the Yen dropped nearly 360 pips to the 161.91 level. As a whole, the Yen it still a strong currency. However, if economies such as the U.S., China and Britain start showing growth in the coming months, then we may see the JPY lose lot of the strength that it gained since the start of the current economic crisis.

OIL – Crude Oil Climbs to Over $72 a Barrel

The price of Crude Oil climbed to over $72 a barrel yesterday, before closing at around $71.25. Monday’s trading saw Oil at the highest level since July 1st. Yesterday’s bullish behavior in Crude can is largely owed to the optimistic manufacturing data that was published by the leading economies, led by the U.S., Britain and China. This is important, as the U.S. and China are 2 of the biggest consumers of Oil, which also played into higher Crude prices yesterday.

The high expectations surrounding the improved global economic sentiment, increased risk appetite, which also led to a fall in demand of the USD. In turn, this helped push-up the price of Crude Oil. The price of Crude was unable to hold above the $72 mark due to a lack of demand. However, if the global economy continues to recover, and positive economic results continue to be published, we may see stronger Oil prices for the foreseeable future.

Technical News

EUR/USD

The pair has been showing a strong and consistent uptrend since the beginning of this week, and the momentum appears that it will continue uninterrupted. The small local correction is slowly losing its energy, and the daily chart is showing that the renewal of the bullish trend is quite imminent. Buying on lows might be a good strategy today.

GBP/USD

On a daily chart the pair is showing consistent bullish momentum for a while now and today is no difference. Although the signal is not strong the pair might have a local target at 1.6990, which might make it feasible for forex traders to go long with tight stops.

USD/JPY

Since the last bearish move, the pair has been consolidating around the 95.10 level for quite a while now. The hourlies provide bearish signals, suggesting that the restoration of the bearish momentum is due. Going short appears to be preferable today.

USD/CHF

The bullish move the pair is going through appears to have diminishing momentum, and lacks the ability to make a significant breach above the 1.0660 level. The hourly studies show mixed signals, and the daily chart’s Stochastic Slow is indicating a mild bearish direction. Waiting for a clearer signal on that pair appears to be a good decision today.

The Wild Card – AUD/USD

On the daily chart the moderate bullish price movement continues within the upwards channel which still has yet to be breached. The 4-hour chart is also joining that notion with the Slow Stochastic pointing to the continuation of upwards momentum. Next testing point should be around 0.8510 Forex traders have a good opportunity to enter what appears to be the beginning of a steady rising trend.

Forex Market Analysis provided by Forex Yard.

© 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.

Gold Leaves $950/oz behind with Broad Depreciation of the Dollar

By Fast Brokers – Gold has climbed above our 2nd tier downtrend line and previous July highs as the GBP/USD and EUR/USD burst higher.  Both currency pairs are setting fresh 2009 highs, a bullish confirmation on their part.  Gold is enjoying its positive correlation, heading towards our 3rd tier downtrend line in a hurry.  However, June 10 highs and the 3rd tier downtrend line could prove to be worthy immediate-term obstacles with the S&P futures dangling just beneath their highly psychological 1000 level.  Even though the EUR/USD, GBP/USD, and crude futures have done their parts, 1000 should be a challenge for the S&P if psychological precedence holds true.  Therefore, even if the S&P futures should poke above 1000, we expect a retracement and ensuing near-term battle.  As a result, gold could enter a similar conflict with its aforementioned barriers.  On the other hand, most of the S&P’s correlations are confirming the uptrend, meaning that a 1000+ S&P may be in the cards.  Hence, the near-term future for gold is bright even if the immediate-term has its obstacles.

Present Price: $961.65/oz

Resistances: $962.24/oz, $963.81/oz, $965.26/oz, $966.91/oz, $968.60/oz

Supports: $961.00/oz, $959.34/oz, $958.12/oz, $956.32/oz, $954.39/oz

Psychological: $950/oz

Market Commentary provided by Fast Brokers.

Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.

Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.

EUR/USD Continues its Surge After Positive Global Data

By Fast Brokers – The EUR/USD has rocketed past all of our previous downtrend lines, bursting out of the gates sooner than we had anticipated.  Investors are shrugging off the much weaker than expected retail sales data out of Germany, choosing to focus on the U.S., China, and Britain instead.  All countries released stronger than expected manufacturing PMI data points, with Britain’s registering growth (50.8) for the first time since May 2008.  The higher than expected PMIs bode well for the EU’s large manufacturing sector.  The EU should benefit as the global economy pieces together consumption, so the EUR/USD is benefitting from today’s wave of positive news.

Investors are continuing their return to risk, resulting in a broad-based depreciation of the Dollar.  The EUR/USD is setting new 2009 highs, locking its sights on the psychological 1.45 mark, the next psychological barrier.  The EUR/USD appears to have some more near-term upward mobility since the currency pair has leapt past our downtrend line forming through September 22nd and December 18th highs.  These highs are the next points of heavy resistance, yet they reside around the 1.47 zone.  Hence, it’s clear this rally has legs.  Speaking of which, the EUR/USD is registering large volume on the buy-side, indicating bulls are putting their money where their mouth is.

Despite the rampant optimism, the S&P futures are trading at 1000 mark right now.  While the flood of today’s positive news could send the futures past 1000, it’s difficult to believe this highly psychological level won’t put up a good fight once it’s breached.  Therefore, the EUR/USD could hit a wall soon and consolidate should the S&P futures behave as we suspect.  There is a ton of important U.S. data left to be seen over the next two days, and investors may want to wait and see how the other indicators fare.  Data will be relatively quiet on the EU front until Thursday’s ECB monetary policy decision.  However, should U.S. and British economic data outperform leading up to the meeting, the EUR/USD may already price in a neutral/positive result from the ECB.  Regardless, the EUR/USD is making a clear case for its uptrend, giving a green light.  It would take a very large, negative shock to derail the recovery in the EUR/USD.

Present Price: 1.4413

Resistances: 1.4441, 1.4476, 1.4506, 1.4546

Supports: 1.4391, 1.4348, 1.4305, 1.4266, 1.4242

Psychological: 1.45

Market Commentary provided by Fast Brokers.

Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.

Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.