{"id":4407,"date":"2009-10-23T11:24:18","date_gmt":"2009-10-23T16:24:18","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4407"},"modified":"2009-10-23T11:24:18","modified_gmt":"2009-10-23T16:24:18","slug":"eurusd-retreats-with-u-s-equities-and-broad-dollar-strength","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/10\/23\/eurusd-retreats-with-u-s-equities-and-broad-dollar-strength\/","title":{"rendered":"EUR\/USD Retreats with U.S. equities and Broad Dollar Strength"},"content":{"rendered":"

By Fast Brokers <\/strong>– Investors are favoring the Dollar today after Q3 earnings continued to roll in positively, most notably MSFT and AMZN.\u00a0 Furthermore, U.S. Existing Home Sales blew past estimates while Britain\u2019s Prelim GDP printed a shocking -0.4%.\u00a0 Therefore, investors are suddenly favoring the U.S. economy, and are heading towards the Dollar in speculation that the Fed may be able to tighten sooner than anticipated.\u00a0 However, the excitement is a little premature since unemployment remains a thorn in the recovery\u2019s side.\u00a0 Regardless, investors are taking today as an opportunity to liquidate some of their long positions and lock in profits.\u00a0 We notice pullbacks not only in the Euro, but the Aussie, Yen, and gold as well.\u00a0 Naturally, the Pound is the biggest loser today and is highlighted by a pop in the EUR\/GBP.\u00a0 However, the Euro is holding up relatively well due to the EU\u2019s positively mixed PMI data.<\/p>\n

France continues to outperform Germany, whose Services PMI came in lighter than anticipated.\u00a0 Though Germany\u2019s Ifo Business Climate number also printed a bit weak, the data is altogether encouraging.\u00a0 France\u2019s stellar performance helped drive the EU\u2019s headline Services and Manufacturing PMIs beyond analyst expectations.\u00a0 The EU\u2019s fundamental performance is holding the EUR\/USD together despite the large selloff in the Pound.\u00a0 The EU\u2019s fundamental strength should carry over into next week since the union\u2019s econ releases will be light and scattered.\u00a0 The EU will release Germany\u2019s GfK Consumer Climate data on Monday.\u00a0 It\u2019s hard to believe this number will print positively considering Germany\u2019s econ data has been underperforming lately, and consumption is likely feeling the pinch.<\/p>\n

Since the EU will have a quiet calendar, investor attention should remain focused on the U.S. and Britain.\u00a0 The U.S. will continue to roll out Q3 earnings along with important econ data, particularly Advance GDP on Thursday.\u00a0 Meanwhile, the S&P futures are having a lot of trouble breaking through their psychological 1100 level.\u00a0 However, any strong movement above could give a boost of energy to the EUR\/USD\u2019s uptrend.\u00a0 Therefore, investors should keep an eye on the S&P\u2019s interaction with our uptrend lines and 1100.\u00a0 In terms of Britain, today\u2019s GDP figure is a shocker and has dented investor optimism concerning the global economic recovery.\u00a0 Therefore, Britain\u2019s upcoming econ releases will likely carry added weight.\u00a0 Britain will release its Nationwide HPI and CBI Realized Sales on Tuesday.\u00a0 On the other hand, we have seen the EUR\/USD move in a negative correlation against the Cable recently.\u00a0 Hence, underperformance in Britain\u2019s economy doesn\u2019t necessarily mean the Euro will get dragged down with the Pound should its decline accelerate.\u00a0 As a result, investors should pay equal attention to the AUD\/USD and gold since the EUR\/USD was moving in tandem with these investment vehicles when it exhibited a negative correlation with the GBP\/USD.<\/p>\n

Meanwhile, the EUR\/USD continues to float around its highly psychological 1.50 level.\u00a0 We\u2019ve highlighted the significance of 1.50 in our past commentaries, and it seems growing investor uncertainty in other risk currencies is preventing the EUR\/USD from creating topside separation.\u00a0 However, the technicals and fundamentals are still working in favor of the Euro, and all the EUR\/USD needs is a little boost before taking off towards 1.55.\u00a0 On the other hand, any underperformance in U.S. Q3 earnings or econ data next week could undermine the EUR\/USD\u2019s uptrend.<\/p>\n

Technically speaking, the EUR\/USD is right around where we left it yesterday.\u00a0 Our makeshift 3rd tier downtrend line and 1.50 continues to serve as the only foreseeable topside barriers separating the currency pair from accelerated upward movements.\u00a0 As for the downside, the EUR\/USD has several uptrend lines serving as technical cushions along with 10\/22, 10\/20, and 10\/19 lows.<\/p>\n

Present Price: 1.5014<\/p>\n

Resistances: 1.5021, 1.5052, 1.5086, 1.5127, 1.5146<\/p>\n

Supports: 1.4981, 1.4942, 1.4921, 1.4880, 1.4860, 1.4834<\/p>\n

Psychological: 1.50<\/p>\n

\"\"<\/a><\/p>\n

Market Commentary<\/strong><\/em> provided by Fast Brokers<\/strong><\/span><\/span>.<\/a><\/p>\n

Disclaimer:<\/strong> FastBrokers\u2019 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.<\/p>\n

Risk Disclosure:<\/strong> 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.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Fast Brokers – Investors are favoring the Dollar today after Q3 earnings continued to roll in positively, most notably MSFT and AMZN.\u00a0 Furthermore, U.S. Existing Home Sales blew past estimates while Britain\u2019s Prelim GDP printed a shocking -0.4%.\u00a0 Therefore, investors are suddenly favoring the U.S. economy, and are heading towards the Dollar in speculation … <\/p>\n

Continue reading “EUR\/USD Retreats with U.S. equities and Broad Dollar Strength”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-4407","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4407","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=4407"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4407\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=4407"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=4407"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=4407"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}