Month: December 2009

By Fast Brokers – The USD/JPY’s recent rally seems to be topping out as investors lock-in profits on the Dollar.  Today’s weakness in the USD/JPY comes despite a reiteration from the BoJ that the central bank is intent on fighting deflation, implying an accommodative monetary policy for the foreseeable future.  Such a hawkish monetary stance is positive news for the USD/JPY so long as U.S. economic data continues to recover over the near-term.  That being said, yesterday’s U.S. data set was discouraging, particularly the pullback in New Home Sales.  Yesterday’s negative U.S. economic data is the culprit behind present profit-taking in the Dollar, and it will be interesting to see how the Greenback reactions to today’s releases.  Today the U.S. will print weekly Unemployment Claims and Durable Goods Orders.  The U.S. DGO data could be a market mover for the USD/JPY since Japan’s economy is dependent upon export demand to the U.S.  Japan will join the data wire with Household Spending and Tokyo Core CPI during the evening trading session.  Investors will be honing in on Japan’s Tokyo CPI data since a weak number could support the BoJ’s recent hawkish monetary policy statements.  Meanwhile, activity should cool down as the trading session progresses as investors check out for the Christmas holiday.

Technically speaking, the USD/JPY’s movement above our 4th tier downtrend line is an encouraging development since it runs through 8/13 levels, or the psychological 95 area.  Meanwhile, the USD/JPY does face topside technical barriers in the form of our 5th tier downtrend line, 10/26 highs, and 9/21 highs.  Furthermore, the psychological 90 area could still play a role considering how tough the trading zone has been to overcome in the past.  As for the downside, the USD/JPY has multiple uptrend lines serving as technical cushions along with 12/21, 12/18, and 12/14 lows.  Meanwhile, the psychological 90 level should serve as a technical cushion should it be tested.

Present Price: 91.53

Resistances: 91.47, 91.59, 91.80, 91.94, 92.04, 92.17, 92.35

Supports: 91.22, 91.08, 90.92, 90.76, 90.58, 90.36

Psychological: 90, October Highs

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.

By Fast Brokers – Gold has popped back above the highly psychological $1100/oz level, which could turn out to be a hard fought battle since the area does carry some extra psychological weight.  Gold is finding its strength in Dollar weakness as we witness pops and consolidation in the EUR/USD, AUD/USD, and GBP/USD.  The Greenback is pulling back across the board in reaction to yesterday’s disappointing U.S. data set, particularly the dip in New Home Sales.  FX investors will get another dose of data today in the form of weekly Unemployment Claims and Durable Goods Orders.  Should today’s data set reflect yesterday’s weakness the Dollar could experience further selling pressure as investors lock in profits ahead of Christmas, a positive catalyst for gold.  That being said, activity should wind down as the session progresses with investors checking out for the holiday.  Hence, gold could continue to float within striking difference of $1100/oz as investors close of shop for next week, which will also be shortened by the New Year holiday.

Technically speaking, gold has multiple uptrend lines serving as technical cushions along with 12/18 and 12/23 lows.  As for the topside, gold faces technical barriers in the form of 12/21,12/15, and 12/7 highs along with the psychological $1150/oz level.

Present Price: $1102.25/oz

Resistances: $1105.05/oz, $1110.77/oz, $1115.27/oz, $1118.69/oz, $1123.03/oz, $1128.35/oz

Supports: $1100.58/oz, $1094.14/oz, $1088.30/oz, $1082.58/oz, $1079.61/oz, $1074.42/oz

Psychological: $1100/oz, $1075/oz, $1150/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.

By Fast Brokers – The Cable is stabilizing today as investors take profits in the Dollar across the board.  However, the Pound is exhibiting a relative weakness, as highlighted by a pop in the EUR/GBP.  Weakness in the Pound likely stems from yesterday’s BoE Meeting Minutes, which indicated that the central bank is still cautious due to the disconcerting decline in the money supply.  However, the BoE will continue to monitor the effectiveness of its current QE measures, meaning any action may be delayed until February’s meeting.  On a positive note, all 9 BoE members voted in unison to keep the central bank’s monetary policy unchanged.  Hence, all BoE members are on the same page with a wait-and-see approach.  Meanwhile, the Cable will likely follow any broad-based moves in the Dollar due to the lack of UK economic data until next week’s Nationwide HPI release.  That being said, investors should monitor the Greenback’s reaction to today’s U.S. Unemployment Claims and Durable Goods Orders releases.  Should today’s U.S. econ data echo yesterday’s negative sentiment then investors may continue to lock-in gains on the Dollar, a positive catalyst for the Cable.  On the other hand, should U.S. data print positively, investors may snap up the Dollar again and leave the Cable around December lows.  However, activity should gradually cool down as the session progresses as investors check out for the Christmas holiday.

Technically speaking, the Cable’s large pullback this month has sent the currency pair below some key technical levels.  Hence, it’s possible the Cable could be entering a more protracted downturn.  The Cable has now dropped below our 2nd tier uptrend line with our 1st tier uptrend waiting far below (Off Chart).  That being said, the fact we are now using March lows, or the 1.40 area, to create uptrend lines gives investors an idea of the extent of the damage inflicted by the Cable’s December pullback.  Meanwhile, it will be interesting to see if the Cable can add onto intraday gains and gain some topside separation from 1.60.  If not, the Cable does have some technical supports in the form of September and October lows.  As for the topside, the Cable faces multiple downtrend lines along with 12/18 and 12/16 highs.

Present Price: 1.6001

Resistances: 1.6005, 1.6023, 1.6045, 1.6071, 1.6096, 1.6132

Supports: 1.5972, 1.5943, 1.5917, 1.5899, 1.5875, 1.5845

Psychological: 1.60, 1.65, September and October lows

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.

By Fast Brokers – The EUR/USD is logging solid gains so far today as we witness broad-based profit taking the Dollar.  Gold is back above $1100/oz and the EUR/GBP has popped towards .90, indicating relative strength in the Euro.  The Euro’s strength comes despite yesterday’s weaker than expected French Consumer Spending data.  Investors are instead focusing on weaker than expected U.S. New Home Sales, Revised UoM Consumer Sentiment, and Personal Spending.  The pullback in U.S. economic data has given investors the opportunity to lock in recent Dollar gains as confidence in the U.S. economy wanes.  That being said, investors will receive more key U.S. data today in the form of Durable Goods Orders and weekly Unemployment Claims.  If today’s U.S. econ data also print below analyst expectations this could fuel the Dollar present pullback and allow the EUR/USD to hop back above 12/18 highs.  Meanwhile, the EU is on holiday for the rest of the week for Christmas, and trading should die down as the U.S. trading session wears on.

Technically speaking, the EUR/USD faces technical barriers in the form of our 3rd and 4th tier downtrend lines along with the psychological 1.45 level.  Bulls will be looking to get the EUR/USD back above our 2nd tier uptrend line since it runs through July lows.  That being said, the EUR/USD could still be in the midst of a more extensive downturn if the currency pair doesn’t surmount some topside technicals soon.  The story will remain the performance of America’s economy and whether fundamentals can continue their impressive recovery over the near-term.  As for the downside, the EUR/USD has technical cushions in the form of December and September lows along with the highly psychological 1.40 area should conditions deteriorate.

Present Price: 1.4365

Resistances: 1.4376, 1.4400, 1.4430, 1.4467, 1.4509

Supports: 1.4348, 1.4322, 1.4304, 1.4286, 1.4266, 1.4246, 1.4218

Psychological: 1.45, 1.40, December and September Lows

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.

By Ashley Smith – The Australian and New Zealand Dollars rebounded yesterday following their sharp sell off this past week which impelled investors to buy the two currencies as their perceived their low level are overdone. The currencies also received a boost after the release of worse then expected U.S New Home Sales report which dampened demand for the Dollar on concerns the U.S economic recovery may still be shaky. The AUD also gained as commodities’ prices recovered slightly

The AUD rose 0.3% to 88.40 U.S. cents from 87.99 cents in New York yesterday, when it touched 87.35 cents. The AUD also gained against the Yen, to 80.70. New Zealand’s Dollar gained 0.3% to 70.70 cents from 70.46 cents yesterday when it reached a three-month low of 69.75. It is likely that we’ll see more gains for these currencies towards the end of the year as the rally in the USD seems to be loosing some steam.

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.

Source: ForexYard

Following a disappointing American New Home Sales Report released yesterday, the U.S. Dollar seems to have reversed course in trading against its major counterparts. Both the Euro and Yen made impressive gains against the greenback, which both seem to have held going into Thursday’s trading session.

Economic News

USD – Dollar Take Losses Following Home Sales Report

According to a new report released yesterday, new home sales in the U.S. have fallen to a 7-month low. Despite the numerous positive indicators that have been released in recent weeks regarding the U.S., investor confidence in the American recovery was dampened due to the housing report. Causing further damage, a revised figure for November’s new home sales shows that that month’s figure was actually lower then originally stated.

After rising to a 3 1/2 month high against the Euro at 1.4216 on Tuesday, the Dollar has since fallen and is currently trading at around the 1.4345 level. USD/JPY also saw downward movements following the report, and is currently trading at approximately 91.50.

Trading today could become volatile for the greenback, as several news events may determine the direction the currency takes in the near future. The Core Durable Goods Orders and this week’s Unemployment Claims Report are both set to be released at 13:30 GMT. If the numbers keep in line with the forecasted figures, the Dollar may be able to reverse some of its losses. If the numbers fall below predictions, the Dollar may drop further ahead of the Christmas holiday.

EUR – Euro Recoups Losses against Major Counterparts

It was not only against the Dollar that the Euro made gains in trading yesterday. Following the release of meeting minutes from the Monetary Policy Committee (MPC) of the Bank o England, the Euro moved to a one week high against the Sterling. The MPC could not give a clear indication on whether the British economy is improving or not heading into the New Year. Consequently investor confidence was shaken, a sentiment the Euro was able to capitalize on.

Currently EUR/GBP is trading at 0.8974, an 8-day high. With no major news events for either the Euro or Sterling scheduled for Thursday, traders can expect the current values to hold into next week when markets reopen following the Christmas holiday.

Today traders will want to keep an eye on the economic indicators coming out of the U.S. Any figure below the forecasted numbers would likely solidify the Euro gains made yesterday. On the other hand, the U.S. has had continuously strong unemployment numbers the past several weeks. If this trend continues, it could mean bad news for the Euro.

JPY – Yen Falls against Riskier Currencies

Speculation is abound that the Bank of Japan will keep interest rates low for the foreseeable future in order to curb deflation. The Yen has since fallen against high risk currencies, most notably the Australian Dollar which gained 0.2% against the JPY in trading. Currently the pair is valued at 80.65. Traders may want to keep an eye on the pair, as the historically volatile Aussie will likely cause a downward correction in the near future.

As there are no major JPY news events ahead of the holiday weekend, trading should be relatively muted today. Forex customers will still want to pay attention to the U.S. unemployment figures, as they are likely to impact the USD/JPY pair. A positive figure may result in a reversal of the gains made by the Yen yesterday against the greenback.

Crude Oil – Oil Prices Spike Following U.S. Report

Crude Oil prices shot up over $2 a barrel yesterday following a report stating that U.S. supplies have fallen significantly lower than anticipated. America is the world’s largest energy consuming nation. When supplies are down there, prices typically rise in order to compensate for an increase in demand. Prices were further elevated due to severe winter weather in the Eastern part of the country.

Currently crude oil is trading at around $77.25. Traders will want to wait and see how the market reacts to the U.S. news events set to be released today in order to further gauge the direction oil will take. If the news negatively reflects on the pace of the American economic recovery, crude prices will likely continue to rise. Conversely, if the reports released today are positive, crude may retreat from its current high levels.

Technical News

EUR/USD

Mixed signals are evident for this pair. The 2 hour RSI is floating in the overbought territory while the 4 hour chart Slow Stochastic is exhibit a fresh bearish cross, while the daily RSI is floating in the oversold territory. Going short for the day with tight stops might be advised.

USD/JPY

The pair seems to be exhibiting mixed signals. The hourly and 2 hour charts show a breach of the lower Bollinger Band with the two hour RSI floating near the oversold territory and the hourly Slow Stochastic showing an impending bullish cross forming. The daily chart’s Slow Stochastic, however, is showing a bearish cross and the daily and 8 hour RSI is floating in the overbought territory. It seems that going long with tight stops for the day is advised

GBP/USD

The daily and 8 hour RSI are floating in the oversold territory, with the daily chart’s Slow Stochastic exhibiting a bullish cross as well as the 4 hour MACD. Going long for the day seems to be a good option

USD/CHF

The two hour RSI is floating in the oversold territory, with the 4 hour Slow Stochastic and hourly MACD showing fresh bullish crosses. Going long for the day might be a wise choice.

The Wild Card – EUR/NOK

The daily, 4 hour and 2 hour RSI are floating in the oversold territory with the daily and 4 hour Slow Stochastic exhibiting fresh bullish cross forming. The hourly MACD is also exhibiting a fresh bullish cross. Forex traders are advised to go long for the day.

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.

Market Movers of the Day

Asia-Pacific

*Japanese BSI Large Manufacturing down to 13.2 from previous 15.5

Europe

*Bank of England Minutes

Americas

*Canadian GDP lower than expected at 0.2% MoM

*US Personal Consumption Expenditures rose 0.5% vs. 0.6% expected

*US Personal Income rose 0.4%, in line with market forecasts

*US New Home Sales worse than expected at 355K

*US Michigan Consumer Sentiment Index lower than estimations at 72.5

*US EIA Crude Oil stockpiles dropped 4.9M

The Overall Sentiment

Equities

US stock markets advanced in reaction to the rise in consumer spending, even though it came lower than predicted, but gave up gains as the New Home Sales report showed negative numbers for the housing sector. The S&P managed to close up by 0.2% and the Dow added 0.1%. In Europe, the British FTSE 100 continued to advance for a third day gaining 0.8% as the BoE’s policy makers voted unanimously to maintain the magnitude of their Quantitative Easing  program unchanged at 200 billion pounds. The German DAX ended virtually unchanged, gaining less than 0.1%.

Forex

In a relatively quiet day of trading, the Dollar weakened against most majors after the recent rally that lasted over a week. Following the disappointing US economic data market participants felt a correction was due for the greenback. EUR/USD found support slightly above 1.42 and advanced towards 1.4350. The Pound was the worst performer against its US counterpart as the BoE Minutes failed to ignite positive sentiment in the market, which still perceives that the UK economy is lagging behind most countries’ improvements. The Canadian dollar strengthened as the country’s GDP figures showed a 0.2% expansion in October. The growth was lower than the expected 0.3% but the loonie managed to advance, with USD/CAD breaking below 1.05. The Aussie and New Zealand dollars, commodity-linked currencies like the Canadian dollar, climbed versus its US peer as Crude Oil jumped on a larger-than-expected drop in stockpiles.

Commodities

Crude Oil jumped over $2, trading above $76.50, as the weekly EIA report showed that US stockpiles decreased by 4.9 million barrels, when market expectations pointed to a 1.8 million drop. Gold rebounded from $1080 reaching $1092 an ounce as the Dollar weakened for the day. Silver followed, strengthening to $17.15.

Technical Analysis

GBP/JPY DAILY

Bullish Scenario– A daily closing above 147 will signal the continuation of the bullish momentum.

Target A– 149

Target B– 150

Bearish scenario– A failure to break above the 147 level will send the cross south for a correction.

Target A- 144

Target B– 142

Daily Forex Market Analysis provided by eToro

Disclaimer: Trading in the Foreign Exchange market might carry potential rewards, but also potential risks. You must be aware of the risks and are willing to accept them in order to trade in the foreign exchange market. Don’t trade with money you can’t afford to lose.

© 2009 eToro Blog.

By GCI Fx Research

€

The euro moved higher vis-à-vis the U.S. dollar today as the single currency tested offers around the US$ 1.4365 level and was supported around the $1.4235 level.  Weaker-than-expected U.S. economic data today paved the way for a stronger common currency.  First, MBA mortgage applications were off 10.7%, down from a prior reading of 0.3%.  Second, November personal income notched its largest increase in six months but failed to meet estimates, printing at +0.4%, up from a revised +0.3% in October.  November personal spending decelerated to +0.5% from a revised reading of +0.6% in October and the the final December University of Michigan consumer sentiment indicator slid back to 72.5 from 73.4.  Other data saw November new home sales off 11.3% m/m, a sharp reversal from the downwardly revised +1.8% reading in October.  On an annualized basis, new home sales sank to 355,000 from a revised 400,000 in October.  Other data saw the PCE deflator up 1.5% y/y, a sharp increase from the 0.1% revised October reading. At the core level, PCE was up 0.0% m/m and 1.4% y/y.  Federal Reserve Chairman Bernanke appears poised to be reappointed to his position by the entire Senate.  The most likely scenario for monetary policy in 2010 is the gradual removal of the Fed’s emergency liquidity programs and a possible marginal increase in the federal funds target rate in the second half of the year.  In eurozone news, Moody’s Investors Service downgraded Greece’s sovereign debt rating yesterday, following recent moves by Fitch and Standard & Poor’s. Bank of Greece today reported Greek banks are well-capitalized with capital adequacy levels much higher than the European average.  Data released in the eurozone yesterday saw the December GfK consumer confidence survey decline to 3.3 in December from 3.7 in November.  The European Central Bank is expected to keep monetary policy relatively steady for the next several months.  Euro bids are cited around the US$ 1.3885 level.

¥/ CNY

The yen appreciated vis-à-vis the U.S. dollar today as the greenback tested bids around the ¥91.30 level and was capped around the ¥91.85 level.  Chartists are eyeing the ¥92.85/ ¥93.15 levels as upside price objectives. Bank of Japan’s newfound vigilance against deflation has pushed long-term rates to a 53-month low on speculation the central bank will not lift its unsecured overnight call rate target while consumer price deflation remains negative. The yield on five-year Japanese government bonds reached 0.425%, the lowest yield since July 2005.  Bank of Japan Governor Shirakawa yesterday said economic policymaking should not be guided by short-term price movements.  On Monday, Shirakawa reported the central bank will “persistently” keep interest rates at “virtually zero” per cent to combat deflation.  Shirakawa pledged “to supply ample liquidity and maintain stability within the financial system…if it is deemed necessary to achieve that, we are always prepared to act swiftly and decisively.”  Last week, Shirakawa stepped up the verbal rhetoric noting the BoJ “does not tolerate a year-on-year rate of change in the consumer price index equal to or below zero per cent.”   Finance minister Fujii yesterday reiterated the government will cap its new debt issuance at ¥44 trillion in the next fiscal year.  This figure includes a ¥2 trillion fund to support jobs that Prime Minister Hatoyama recently described.  Final budget negotiations for the 2010 – 2011 fiscal year are expected by the end of this week.  Former finance ministry official Sakakibara warned the dollar could fall to ¥80 and “cause stock losses and enhance deflation.”  The government today reported the economy is “picking up” and kept its economic assessment unchanged for the fifth consecutive month.  Notably, the government reduced its assessment of capital spending.  The Nikkei 225 stock index climbed 1.91% yesterday to close at ¥10,378.03.  U.S. dollar offers are cited around the ¥94.75 level.  The euro moved higher vis-à-vis the yen as the single currency tested offers around the ¥131.30 level and was supported around the ¥130.55 level.  The British pound moved lower vis-à-vis the yen as sterling tested offers around the ¥145.75 level while the Swiss franc moved higher vis-à-vis the yen and tested offers around the ¥88.25 level. In Chinese news, the U.S. dollar depreciated vis-à-vis the Chinese yuan as the greenback closed at CNY 6.8294 in the over-the-counter market, down from CNY 6.8295.  People’s Bank of China reaffirmed its plans to maintain a “moderately loose” policy stance in 2010 and to restrict credit for industries that have excess capacity.  China appears poised to register economic growth of 8% this year. Chinese lenders provided US$ 1.3 trillion in loans in the first eleven months of the year.  Monetary policy adjustments are expected in 2010 to slow the pace of economic growth and inflationary pressures.  People’s Bank of China Governor Zhou yesterday reported reserve ratios are an important policymaking tool and there is widespread speculation the central bank will lift reserve requirements for banks when policy is tightened further.   People’s Bank of China advisor Fan Gang yesterday said the U.S. dollar may decline in the “very long term” and fluctuate in the short term. State Information Center member Zhu Baoliang reported “the yuan shouldn’t move against the dollar next year.” The Chinese government reported industrial output will have expanded 11% in 2009 when final data are tallied.  A government think tank reported retail sales will likely expand 18.5% in 2010 with exports up 6% next year.

₤

The British pound appreciated vis-à-vis the U.S. dollar today as cable tested offers around the US$ 1.5990 level and was supported around the $1.5925 level.  Sterling this week had traded at its lowest level since mid-October before U.S. dollar bulls booked some profits.  BBA reported net mortgage lending by U.K. banks increased ₤3.3 billion in November, up from a ₤3.2 billion rise in October.  Demand for consumer credit weakened last month as ₤300 million was repaid by borrowers, up from ₤200 million in October.  BBA also reported that mortgage approvals rose to a two-year high of 44,713 in November.  Minutes from Bank of England’s 9-10 December Monetary Policy Committee meeting were released today in which policymakers unanimously voted to keep the BoE’s asset purchase facility unchanged at ₤200 billion and its main Bank Rate unchanged at a record-low of 0.5%.  Yesterday, Bank of England announced trading conditions in the secondary market remain “somewhat restricted” and noted it will move to expand liquidity in the first week of the year.  Cable bids are cited around the US$ 1.5755 level.  The euro moved higher vis-à-vis the British pound as cable tested offers around the ₤0.8995 level and was supported around the ₤0.8910 level.

CHF

The Swiss franc appreciated sharply vis-à-vis the U.S. dollar today as the greenback tested bids around the CHF 1.0360 level and was capped around the CHF 1.0495 level.   There remains ongoing talk the Swiss National Bank is conducting franc-selling intervention.  Swiss National Bank released its quarterly report on Monday and said it would be “premature” to begin raising borrowing costs, noting there are “downside risks” to the inflation outlook.”  Trying to provide a balanced outlook, however, SNB reported “expansionary monetary policy cannot be maintained indefinitely.” On 10 December, SNB voted to keep its benchmark rate unchanged at 0.25% and noted it will end its corporate bond purchases as a first step to withdraw its emergency measures.  On Monday, SNB reported it will “continue to act decisively to prevent any excessive appreciation.”  U.S. dollar offers are cited around the CHF 1.0615 level.  The euro moved lower vis-à-vis the Swiss franc as the single currency tested bids around the CHF 1.4875 level while the British pound depreciated vis-à-vis the Swiss franc and tested bids around the CHF 1.6535 level.

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.

By Dan Eduard – The Scandinavian Kroner took fresh losses against the U.S. Dollar in recent trading. This was largely due to a series of positive news events coming out of America, combined with negative economic indicators from countries such as Sweden and Norway.

The most recent U.S. Existing Home Sales Report has caused the Dollar to make impressive gains against its major counterparts. In Sweden, consumer confidence unexpectedly fell in December relative to November’s report. As a result, the Swedish Krona tumbled against the greenback, and is currently trading around 7.3285. After a Norwegian report released last week indicated that unemployment in that country recently increased, the USD/NOK pair rose, and is currently trading around 5.8720.

Looking to the week ahead, a fresh batch of news events could impact the Scandinavian Kroner. The U.S. New Home Sales Report, set to be released at 15:00 GMT Wednesday, as well as the most recent American unemployment figures set to be released on Thursday at 13:30 GMT will likely impact the market. Any positive news from these events will likely drive the Kroner lower against the greenback. That being said, all hope is not lost for those looking for a rebound from the Scandinavian currencies. As indicated by the technical analysis below, the Danish Krone is venturing into over-bought territory. This may indicate that a downward correction could be imminent.

USD/DKK Technical Analysis

After yesterday’s bullish trading session, the pair is showing strong bearish signals. The daily chart below shows a bearish cross has formed, pointing to a future downward correction in price. The same chart also has the price floating in the over-bought zone on the RSI. This could give forex traders the opportunity to go short on this pair today.

The technical indicators used are the Slow Stochastic, Relative Strength Index (RSI), and Bollinger Bands.

Point 1: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction.

Point 2: The Relative Strength Index (RSI) signals that the price of this pair currently floats in the over-bought territory, indicating downward pressure.

Point 3: The Bollinger Bands show the most recent price move has originated at the upper border, indicating the potential to go all the way to the lower border.

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.

By Anton Eljwizat – The USD/DKK has recorded much bullish behavior in the past several days. However, the technical data indicates that this trend may reverse anytime soon. For example, as I demonstrate below, the daily chart signals that a bearish reversal is imminent, and it might have the potential of reaching towards 5.1000 in the coming days. This might be a good opportunity for forex traders to enter the trend at a very early stage and a great entry price.

• The technical indicators used are the Slow Stochastic, MACD, and Relative Strength Index (RSI).

• Point 1: There is a “doji” candlestick that has formed on the chart, indicating that a reversal should take place.

• Point 2: The Relative Strength Index (RSI) signals that the price of this pair currently floats in the over-bought territory, indicating downward pressure.

• Point 3: The MACD indicates an impending bearish cross, which may signal a downward movement is going to occur in the near future.

• Point 4: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction.

USD/DKK Daily Chart

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.