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Source: ForexYard

The yen was about 0.4% from its strongest level in three weeks against the dollar and the Swiss franc climbed to a record as an uprising in Libya sent oil prices to a 29-month high, boosting demand for safe haven assets.

Economic News

USD – Dollar Weakens on all Fronts

The dollar fell broadly against most of its major currency pairs on Thursday, with further losses seen as likely, pressured by a surge in oil prices as investors feared civil unrest in Libya could spill over to other top producers including Saudi Arabia. By yesterday’s close, the USD fell against the EUR, pushing the oft-traded currency pair to 1.3800. The dollar experienced similar behavior against the JPY and closed at 81.85.

The safe-haven Swiss franc, on the other hand, hit a record high against the greenback, benefiting from the ongoing geopolitical turmoil in the Middle East. The franc has gained in eight of the last nine sessions versus the dollar. In the last two weeks, the Swiss currency has gained 5.1% so far, its best showing since late June last year.

A leading indicator released yesterday was U.S. Unemployment Claims. This number handedly beat last week’s result but failed to provide strength to the Dollar as investors may be waiting for key data due to be released today to implement their trading strategies.

Looking ahead to today, there are several important news releases coming out of the U.S. These include the Prelim GDP and Revised UoM Consumer Sentiment at 13:30 GMT and 14:55 GMT respectively. Better-than-expected results may help the Dollar recover some of yesterday’s losses against some of its crosses such as the EUR and JPY. On the other hand, if the results turn out to be lower than forecasts, then the Dollar may record a fairly bearish session in today’s trading. Traders should pay close attention to the market as there is an opportunity for traders to capitalize on the fluctuations which are likely to follow these releases.

EUR – German Prelim CPI on Tap

The euro extended gains versus the U.S. dollar to hit a session high during early trading on Thursday on expectations interest rates in the euro zone will rise earlier than those in the United States. The euro rose as high as $1.3819, its strongest level since Feb. 3, before retreating to $1.3800, up 0.4% on the day.

A leading indicator released yesterday was the German Final GDP. Germany holds the largest and strongest economy in the Euro-Zone, and thus the relevant publications from this economy usually have a hefty impact on the EUR. The German economy may gather strength in the current quarter after the coldest winter since 1969 curbed construction activity in the final three months of 2010. Business confidence jumped to a record high this month and unemployment is the lowest in almost two decades. Bundesbank President Axel Weber last night indicated the central bank has raised its 2011 growth forecast to 2.5% from 2%. The economy expanded a record 3.6% in 2010.

Looking ahead to today, the most important economic indicator scheduled to be released from the Euro-Zone is the German Prelim CPI. Analysts are forecasting this figure to increase from its previous reading. Traders will be paying close attention to today’s announcement as a stronger than expected result may boost the EUR in the short-term. Traders are also advised to follow the Revised GDP figures coming out of Britain at 9:30 GMT, and the U.S GDP figures at 13:30 GMT as these results may set the EUR’s main currency crosses for the day.

JPY – Yen Continues to Strengthen

The yen experienced a bullish trading session yesterday, as it appreciated against most of its major currency pairs. The JPY extended gains versus the USD during yesterday’s trading session and closed at 81.85. The Japanese yen also saw bullishness against the GBP as it jumped around 90 pips and closed at 0.8560.

Investors worry over a recent rise in the JPY as it makes Japanese products less competitive abroad and hurts the value of overseas sales when translated back into the Japanese currency. With steady gains primarily against the Dollar, much of the Yen’s bullish movement could be contributed to the repatriation of overseas earnings by Japanese companies into the local economy. This has had a positive effect on major JPY currency pairings, as the rising turmoil in the market is leading to more investment in the Japanese currency.

OIL – Crude Oil Trades at 29-Month High

Crude oil jumped to a 29-month high of $103 a barrel , before retreating to $97.50 on Thursday, as investors weighed the risk of Middle East unrest spreading from Libya to bigger exporters including Saudi Arabia.

The standoff between an increasingly isolated Libyan strongman Muammar Gaddafi and rebel factions now in control of oil-rich eastern Libya has cut output in the world’s No. 12 crude exporter by at least 25%, or 400,000 barrels a day.

As for today, the US Prelim GDP will likely determine crude’s next move, with any mildly positive elements within them likely to keep the crude price on its upwards direction.

Technical News

EUR/USD

The EUR/USD cross has experienced a bullish trend for the past week. However, it seems that this trend may be coming to an end. For example, the 8-hour chart’s Stochastic Slow signals that a bearish reversal is imminent. A downward trend today is also supported by the 4-hour chart’s RSI. Going short with tight stops may turn out to pay off today.

GBP/USD

The GBP/USD has gone increasingly bearish yesterday, and currently stands at the 1.6140 level. The daily chart’s Slow Stochastic supports this currency cross to fall further today. However, the 2-hour chart’s Stochastic Slow signals that a bullish reversal will take place today. Entering the pair when the signs are clearer seems to be the wise choice today.

USD/JPY

The price of this pair appears to be floating in the over-sold territory on the 8-hour chart’s RSI indicating an upward correction may be imminent. The upward direction on the 4-hour chart Slow Stochastic also supports this notion. When the upwards breach occurs, going long with tight stops appears to be preferable strategy.

USD/CHF

The cross has been dropping for the past week now, as it now stands at the 0.9250 level. The Slow Stochastic of the 8-hour chart shows a bullish cross has recently formed, indicating that an upward correction is imminent. This view is also supported by the RSI of the 4-hour chart. Going long with tight stops may turn out to be the right choice today.

The Wild Card

Gold

Gold prices rose significantly in the last week and peaked at $1417 an ounce. However, daily charts’ RSI is floating in an overbought territory suggesting that a recent upwards trend is losing steam and a bearish correction is impending. This might be a good opportunity for forex traders to enter the trend at a very early stage.

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.

After this past week’s surging price of precious metals, traders appear to be expecting some level of retracement in value for Silver.

In an earlier article it was argued that Silver prices may outpace the spiking price of Gold, which has so far panned out. Gold reached just shy of its all-time nominal high, whereas Silver jumped to a 30-year peak and held steady, for the most part.

As of yesterday, however, Silver prices appear to be coming back down. So far, it seems, there appear to be two fundamental factors and one technical aspect fueling this retracement.

First, profit-taking among the precious and noble metals yesterday constituted the bulk of the sudden plummet in Silver prices. As several industries which apply Silver in their production posted above-expected profits in Q4, many analysts seem to be anticipating a pull-back as part of an impending cyclical downturn.

Second, the flaring tensions in Libya, which have driven oil traders bonkers this week, have also created a capital shift towards safe-haven stores of value, like Gold. Gold’s upward mobility pulled other associated metals higher along with it, but Silver’s spike was given impetus by a multitude of other factors associated with growth among industry and hi-tech.

As long as Libya’s president, Muammar Qaddafi, fights to hold onto power, commodity prices will likely continue to find support. But traders should be cautious since revolutions like those spreading throughout the Middle East may end as abruptly as they began, creating a whiplash turnaround in market activity.

Australia’s central bank governor, Glenn Stevens, warned of such sentiment recently by calling on markets to begin pricing in the impending correction to the latest surge in asset prices. Gov. Stevens’ concern is connected to the fact that Australia’s economy is closely aligned with the value of precious metals and an overextension of investment could create a nasty backlash on the Economy Down Under.

The technical factor is, as usual, a theoretical prediction. The daily and weekly charts on Silver show what may end up being the first shoulder and the head of a head-and-shoulders formation. If true, we may expect a retracement back towards $27 before a secondary surge, likely reaching as high as $31. If it does end up being such a formation, we may see Silver prices breaking out of its uptrend over the next few months, possibly falling back into the high $20s.

Silver – Weekly Chart

Listen to an updated outlook for 2011 from senior equity analyst Per Hansen.

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By Sara Nunnally, Editor, Smart Investing Daily, taipanpublishinggroup.com

Back in September 2010, at our annual Taipan Publishing Group Global Opportunities Summit, I presented the “Lost Chapter” of Barbarians of Wealth.

Our executive publisher Sandy Franks and I had embarked on a mission of epic proportions. We dug through thousands of years of history, ages of ancient battles and modern-day assaults on American prosperity.

What we ended up with was a scathing report on how our government, our banks, the Federal Reserve and the filthy lobbying business all colluded to steal your wealth. We hunted through the annals of notorious barbarians like Genghis Khan and Rollo the Viking to find out how true barbarians tick…

And found that today’s Barbarians of Wealth have learned a lot from their predecessors.

Sandy and I felt like we needed to expose these modern-day villains for what they are — barbaric thieves, with one hand in your pocket, and the other pleading innocence.

In our book, Barbarians of Wealth: Protecting Yourself from Today’s Financial Attilas, we show you how politicians such as former U.S. Treasury Secretary Henry Paulson are no better than the terrifying Attila the Hun, who extorted millions in tribute from the Eastern Roman Empire. Their tactics may have changed… The tools are no longer trebuchets or Mongolian bows… They’re computer programs and toxic assets and stimulus programs. But they’re designed to leave you penniless and dumbfounded as surely as a barbaric invasion.

And readers are loving it. Barbarians of Wealth reader B.O. wrote in to say:

I am sending this email to say a huge “Thank You” to both Sandy Franks and Sara Nunnally for their thoroughly researched book Barbarians of Wealth. Whilst I can’t honestly say I understood all of it I was in awe of its contents and in particular of all the incredible work that went into the writing of the book. We need more like you girls with the courage to tell it as it is, for without the truth I believe we face a bleak future and in addition I would like to say as a member of your great organization, thank you.

Reader D.M. said:

I just want to say… how much I am enjoying reading the Barbarians of Wealth! Thank you so much Sara and Sandy for writing this book, it has been a real eye-opener for me — I think everyone needs to read your book and I hope it stays on the No. 1 best-selling book list for a very long time. I am so impressed by all the research you have both put into this book and also it is written in a style that is easy to read and enables me to understand what would normally be a very complicated topic.

In September, I decided to release a “chapter” that was not published in the book. It centered around the idea of putting a tollbooth on the Silk Road, as an analogy to how to play today’s markets.

What I mean by that is an investment that makes money from the two sides of a trade. More specifically, a financial tollbooth is the market itself.

(By the way, investing doesn’t have to be complicated. Sign up for Smart Investing Daily and let me and my fellow editor Jared Levy simplify the stock market for you with our easy-to-understand investment articles.)

For example, we could be talking about exchanges… I listed six publicly traded exchanges and specifically highlighted one of them: the NYSE Euronext (NYX:NYSE). Why this one in particular? It was one of the best-performing exchanges at that time, and compared to IntercontinentalExchange (ICE:NYSE) it was a better value.

Many of the exchanges had experienced big pullbacks after the global financial crisis, and NYSE Euronext (NYX) was starting to make a comeback.

Here’s what I said specifically:

A break above $31.50 for NYX could mean the start of a new uptrend. It would also mean a break through resistance from this level back in 2009. That might be a good point at which you can hop into the NYX.

On Jan. 12, 2011, the NYSE Euronext (NYX) closed at $32.23 after a huge day.

Now the NYX is trading at about $37, and news of a merger between it and Deutsche Boerse (DB1:XETRA) has thrust the company into the spot light.

Here’s the thing… You might think that NYX was the bigger company, but it’s not. At the time merger talks started up (again, as the two were in talks two years ago that fizzled) the NYX would have made up 36% of the merged company.

And that has me thinking there’s plenty of upside potential for NYX until the deal is done.

Indeed, Bloomberg reports that Deutsche Boerse might not be the only party interested in buying NYX.

This weekend the Sunday Times, covered by Bloomberg, said Nasdaq OMX Group (NDAQ:NASDAQ) and IntercontinentalExchange might make a joint offer for the NYX.

I think this could be just a simple “play the news” opportunity. With other potential bidders coming to the table, the NYX is bound to become more attractive to investors. The stock blew through the previous high price of $34.36, and if it can get past $40 a share, it’s got a clear rise to $50 or $60, particularly if there’s a bidding war.

Editor’s Note: The markets have made huge strides higher, and have erased 72% of the losses of the global financial crisis. But Barbarians of Wealth may be more relevant than ever before. Banks are hording mounds of cash, just like Attila the Hun, and they’re ready to extort more from you and our economy. More than that, they are able… Nothing much has changed since the global financial crisis, and you need to be prepared for the next invasion.

Visit Barbarians of Wealth to learn how to get your copy of this book.

About the Author

Sara is Managing Editor of Smart Investing Daily. As Senior Research Director and global correspondent, Sara Nunnally’s diverse resume includes studies in art history, computer science and financial research. She has appeared on news media such as Forbes on Fox, Fox News Live, and CNBC’s Squawk Box, as well as numerous radio shows around the country. Most recently, Sara co-authored a book with Sandy Franks called, Barbarians of Wealth.

As Senior Research Director, global correspondent and managing editor of Smart Investing Daily, Sara has traveled all over the world in search of the best investment opportunities to recommend to her readers, be they in developed economies like France and Italy, in emerging markets like the Czech Republic and Poland, or in frontier terrain like Vietnam and Morocco. Her unique “holistic” approach of boots-on-the-ground research has given her an edge in today’s financial marketplace as she searches for the next investment opportunities in hot sectors like alternative energy, currency markets and commodities.

Senior strategist Ib Fredslund Madsen comments on the recent spike in oilprices.

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By Zac, CountingPips.com

Today, I wanted to share a quick tip on how to create a pivot point moving average on the Metatrader4 forex trading platform that is fast and easy.

First off, what is a pivot point? A simple definition from Wikipedia:

“A pivot point is a price level of significance in technical analysis of a financial market that is used by traders as a predictive indicator of market movement”

Many traders use pivot points as a special support and resistance area in their trading and find it is worthwhile to pay attention to these levels. Some traders even use the pivot point as the day’s up or down point, price above the daily pivot suggests looking for long positions while below the daily pivot suggests looking for short positions. Daily, weekly and monthly pivot points are very commonly used but pivots can also be used on any other time frame.

Some reasons that a pivot point moving average may be of significance is to spot trend changes, reversals and trend strength. When prices continually close above or below the daily pivots, this would indicate a strong trend is happening while changes in this trend could indicate a reversal may be in order. Of course, it is always best to use this information in combination with other trading methods or indicators.

Pivot Point Calculation

The standard calculation of a pivot point uses the one period’s price information to “predict” a significant price point for the next period.

Pivot Point = (High + Low + Close) / 3

In addition to the pivot point, traders usually watch three support (S1,S2,S3) and three resistance (R1,R2,R3) levels that are based off the calculations of the pivot point. However, this moving average article will not deal with those levels.

Plotting on Metatrader

To plot a pivot point moving average you will not need any special indicators or downloads. You can use the standard moving average indicator that comes in Metatrader.

Open up your Metatrader platform

1. From the Insert tab on the top menu, select Indicators -> Trend -> Moving Average

2. The moving average box should pop up on the front of your screen

3. You want to set the period option to 1 to get the pivot level off just 1 candle. Next, scroll down to the Apply to: option and select the pivot point calculation named Typical Price (HLC/3).

4. Finally, since pivot points are calculated from the candle close of one period to be useful or “predictive” for the next period, you want to shift the moving average to the right. Go to the Shift option or window and put in 1.

The moving average window should look like this:

Click OK and you should see something like this:

Remember that the current candle has the current pivot point plotted right on it (using the previous candle’s price information). In this case below, the daily doji-type candle all the way to the right is currently above the day’s pivot point of 1.3748.

The moving average is also in the process of calculating tomorrow’s pivot based on today’s price action and that is seen by the moving average extending to the far right. This pivot will not be fully relevant until today’s close.

A quick calculation to confirm the accuracy of today’s moving average pivot level from the HLC prices from yesterday’s fuller candle (on the left of today’s doji-like current candle) shows:

1.3786 (high) + 1.3683 (low) + 1.3775 (close) / 3 = 1.3748 or Today’s Pivot Point

Finally, to see the pivot price, put your cursor over the moving average on your Metatrader chart and a price window should show up just like in the above image.

Happy Trading and Pivot Watching!

By Russell Glaser

The crossing of the 50 and 100-day moving averages hints at an extension of the current move.

As the EUR/USD continues to rise, the major moving averages are providing support for the move. Yesterday the 50-day simple moving average (green line) crossed above the slower 100-day moving average (red line), a signal many trending strategies use to identify the direction for trades.

Following this cross, the moving averages are now aligned in a perfect order, with the 20-day moving average above the 50, 100, and 200-day. This indicates a strong trending environment. As such, traders should be looking for further gains in the pair.

First resistance comes in at yesterday’s high of 1.3780. The next resistance level is found at the February high of 1.3860. The trend line falling off of the January 2010 line may come into play down the road. Today that level stands at 1.4150. The November 2010 high of 1.4280 would be a long term target.

Support is found at the rising trend line which comes in today at 1.3560, followed by the February low at 1.3430, and the rising trend line off of the June and January lows.

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.

By GCI Forex Research

Fundamental Outlook at 0800 GMT (EDT + 0400)

USD

Central bank expectations and yield adjustments remain the key driver for FX markets but jitters over the situation in the Middle East and its wider impact are now proving too hard to ignore. Although markets have managed to segregate event risk, Brent and WTI crude futures have broken through $110/bbl and $100/bbl respectively – levels which could prove damaging to the global economy at a particularly crucial time in the recovery. The wider fear is that central banks may need to move on policy far earlier than planned to contain inflation expectations, but risk a rise in borrowing costs that corporate and household sectors may not be prepared for. Overnight EURUSD and USDJPY both struggled to make any headway and traded in ranges of 1.3742-1.3785 and 81.96-82.52 respectively. Equities closed down almost 1% and Treasury yields finished modestly lower as they sold off following a weaker 5y Treasury auction.
The second-tier data releases and Fedspeak did not provide the dollar with broad support although existing home sales for January unexpectedly gained. Kansas City Fed President Hoenig and Philadelphia Fed President were unsurprising hawks. Plosser said tapering of QE2 is not necessary though the committee had not yet decided on an exit strategy and an early exit should not be ruled out if the economy continues to improve. Plosser also said they may need to change policy even with elevated unemployment and Hoenig warned of the dangers of loose monetary policy. US activity figures are due. Initial jobless claims are due and we are with consensus in looking for a dip down to 405k. The previous reading was the survey week for the broader Bureau of Labor Statistics payrolls report, which could mute the impact of a decrease in claims. But the resumption of a downtrend should be modestly positive for the dollar, though external developments again could be the larger driver.
EUR

German GDP for Q4 was confirmed at 4.0%y/y, 0.4%q/q, driven by strong export growth and public spending.
Yesterday’s CPI prints in France and Italy surprised to the downside, but the euro continues to be driven by policymaker comments and stays supported as the general tones remain hawkish. We believe the market right now risks being too optimistic on policy expectations, but with headline inflationary pressures rising ECB officials will likely maintain a hawkish stance but just short of the crucial “vigilance” threshold.
Slovakia Finance minister said that the next ECB President is likely to be German, unless Germany decide against this themselves.
GBP

Spencer Dale joined Martin Weale and Andrew Sentance in calling for rate hikes. Dale and Weale called for 25bp, while Sentance called for 50bp. Adam Posen continued to vote for further QE. The minutes were hawkish both on the vote front and on the tone, noting that ‘of those members not favouring a rise in Bank Rate, some thought that the case for an increase had nevertheless grown in strength’. Clearly this is a fundamental shift in stance from the BOE, and the question is now whether the hawks can entice 2 other members over to their camp. Sentance is due to leave the MPC in May so his call for 50bp of hikes suggests that he is trying to push through his policy before his departure. The key is whether they will get the two extra hawks by May, and sterling is likely to remain supported for the near-term, as speculation mounts that they might just be able to.
The BoE’s Sentance, Weale and Posen are not expected to offer any surprises at their upcoming speaking appearances. Fellow policymaker Miles said that inflation is worrying but also said there is no strong case to tighten policy faster than market rates are implying. He sees CPI falling sharply in 2012 and said it is unlikely the pound would drop due to loose monetary policy.
CBI reported sales are due today at 11:00 GMT and another decline to 28 (prev. 37) is expected.
AUD

Australian capex figures were solid, showing a rise of 1.3% in Q4 (cons. 4%) but our economists note the equipment capex rose 6.1%, and overall the result should add about 0.5% to GDP. Our economists note that the data reinforce the view that while there is some catch up needed in the economy in H1, the RBA may need to tighten further in H2, though consumers and the housing sector will feel the pressure of higher rates.
NZD

Prime Minister Key said the delay of the rebuilding of Christchurch following the recent earthquake will likely curb New Zealand’s economic recovery, though he did not expect a sovereign credit rating downgrade, in line with Moody’s comment that there would be no immediate impact on their Aaa rating.

TECHNICAL OUTLOOK
USDCHF clears 0.9329/01.
EURUSD BULLISH Rise through 1.3744 exposes 1.3826 and 1.3862 next. Near term support is at 1.3647.
USDJPY NEUTRAL Decline through 82.34 has exposed 81.78, while resistance lies at 82.89.
GBPUSD BULLISH Bullish pressure holds below 1.6279/99 resistance zone. Near-term support comes in at 1.6101.
USDCHF BEARISH Negative momentum continues; breach of 0.9329/01 support area has exposed 0.9241. Near-term resistance at 0.9506.
AUDUSD NEUTRAL 1.0158 and 0.9944 mark the near-term directional triggers.
USDCAD BEARISH Initial support is at 0.9816 ahead of 0.9745/12 area. Resistance at 0.9959.
EURCHF BEARISH Push below 1.2774 would expose 1.2709. Initial resistance at 1.2958.
EURGBP NEUTRAL Move above 0.8514 would expose 0.8533. Near-term support lies at 0.8384.
EURJPY BULLISH Focus is on 114.19, breach of this level would expose 114.94. Support holds at 112.09.

Forex 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.

In early European trading the price of spot crude oil eclipsed the psychological barrier amid global supply concerns and continued violence in Libya.

The price of spot crude oil climbed rapidly this morning to a high of $103.34 before falling back to the $101.00 level. The commodity opened the day trading at $98.64.

Strong bids were given early in the day as violent protests in the Middle East continue in the nations of Libya and Bahrain. Expectations of sustained turmoil in oil producing nations may cause a disruption in crude oil supplies, potentially derailing global economic growth.

The rise in spot crude oil prices may have technical implications as today’s high price coincides with a 61.8% Fibonacci retracement from the collapse of crude oil prices over the second half of 2008.

Trading in the major currency pairs has also been volatile this morning with the EUR/USD a one point falling as low as the 1.3700 level before rising to 1.3800. Currently the pair is trading near its opening day price 1.3775. Resistance is found at 1.3860 with support at1.3560 at the rising trend line from the February 14th low.

The pound is trading lower across the board with the GBP/USD near its daily low at 1.6157 from 1.6238. Support is found at Tuesday’s low of 1.6000 with resistance at yesterday’s high of 1.6275.

This afternoon at 13:30 GMT US weekly unemployment claims are expected to show 403K new jobless claims. The previous week posted 410K. Also on the US data calendar are monthly core durable goods orders and new home sales.

The current trend of strong US economic data has not allowed for US dollar strength with positive data feeding in to the USD selling. Expectations for a weaker dollar remain as European interest rates look to rise in the near term and risk aversion remains high.

By Greg Holden

Today promises to be a heavy trading session, as significant news out of the US is set to create major market volatility. The USD has recently seen some significant losses against its main currency rivals. Whether today’s news will help the greenback recover some of its losses is still unknown. What can be said for sure is that traders will want to keep an eye on the day’s events.

Here is a roundup of today’s main economic indicators:

13:30 GMT: USD Core Durable Goods Orders
This report is a measure in the percentage change in value of purchase orders with durable goods manufacturers, excluding the transportation industry. This report acts as a leading indicator of production as it represents the latest update on manufacturing demand in the market for the past month. Should this figure come in at or above expectations, traders may take this as a sign of a strengthening US economy and buy back into the USD prior to week’s end.

13:30 GMT: USD Unemployment Claims
The weekly US unemployment claims figure is widely considered to be one of the more significant events on the forex calendar. Unemployment remains a key stumbling block to economic recovery in the US.

Analysts are predicting today’s figure to come in slightly better than last week’s. At the moment, forecasts are for around 403K. Should the unemployment number come in at or below this number, traders can expect the dollar to make some afternoon gains, possibly recouping some of its latest losses.

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.