Source: ForexYard
Today will be a quiet news day for the U.S. and Europe as there are no major economic data releases on the calendar from either. However, Canada appears to be releasing one significant figure, which means we may see a day of trading with low liquidity among the majors and therefore increased volatility.
Day-traders can take advantage of these intense trading days by swinging within the larger-than-normal price fluctuations.
Another developing trend is the recovery of crude oil. Oil prices rose more than 1% on Monday, after a weekend leak shut the Trans-Alaska Pipeline and forced producers to cut output to about 5% of their daily average of 630,000 barrels.
Moreover, since the Dollar began dropping against the majors, crude has risen further and further. Currently trading around $89.35 a barrel, if the Dollar will continue to drop, crude could reach above $90 a barrel by the end of the day.
Here are today’s leading events:
13:15 GMT: Canadian Housing Starts
The Housing Starts report provides the number of new residential buildings that began construction during the previous month. As a leading indicator of housing and construction growth, this report has a direct correlation with the strength of the Canadian economy. If the end result will beat forecast for 179K housing starts, then the Canadian dollar (CAD) is likely to strengthen.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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