Month: March 2009

Source: ForexYard

Many forex traders in the market would be blind to have not noticed the sharp volatile movements occurring in the world’s primary currency pair: the EUR/USD. This tug-o-war between the two largest world currencies comes about as each side takes aggressive steps to combat the recent recession. As the U.S. continues to publish positive economic data, and the Euro-Zone considers taking steps similar to those taken in the States, this pair’s sharp volatility will no doubt continue through to next week.

Economic News

USD – Dollar Falls on Increased Risk Appetite

The Dollar finished Thursday’s trading session lower against a number of its currency pairs after U.S. Treasury Secretary Timothy Geithner said he was open to expanding the use of the International Monetary Fund’s (IMF) special drawing rights. As of yesterday’s close, the USD fell against the EUR, pushing the currency pair to 135.69. The greenback experienced similar behavior against the CHF as the pair fell from 1.1299 to 1.1227 by day’s end.

A disappointing Treasury note auction reversed an early rally in U.S. stocks, but investors ultimately shrugged off that disappointment and focused on the strong economic data. The government reported that New Home Sales in the U.S. unexpectedly rose in February from a record low, as plummeting prices and cheaper mortgage rates lured some buyers, while U.S. orders for long-lasting manufactured goods also unexpectedly rebounded in the same month.

However, demand for New Homes has been limited by the highest jobless rate in a quarter-century and shrinking household wealth, indicating housing may not rebound quickly even as steps to cut borrowing costs and reduce mortgage defaults take hold. Therefore, investors in the coming weeks may unwind their Dollar positions, as they realize that the U.S. economy has a long road ahead for economic recovery.

Investors may look for the unusual price volatility to continue in the EUR/USD as the pair attempts to stabilize and find new support and resistance lines. Large price jumps such as these are not common place and present terrific opportunities to take advantage of the price swings for large profitable gains. In the short-term, the Dollar may continue to fall against the EUR, as traders look to take-up riskier assets.

EUR – EUR Appreciates Despite Negative Figures

After a relatively negative news day in the Euro-Zone, the EUR still managed to appreciate against most of its currency counterparts. The EUR gained nearly 100 points versus the Dollar, and closed at 1.3569. Against the CHF it mainly fluctuated within a small range, as the pair closed at 1.5231. The EUR climbed against the Pound by an impressive 120 points to close at 0.9301. The European currency also made some impressive gains against the Yen, to close Wednesday’s session 85 points higher at 132.67.

The major economic event that came out of the Euro-Zone yesterday was the German Ifo Business Climate data release. German business confidence fell to the lowest level in more than 26 years in March, adding to signs that the recession is deepening in the Euro-Zone’s biggest economy. Analysts expect the negative data release to add additional pressure on the European Central Bank (ECB) to make another interest rate cut in the near future. This may affect the EUR in the long-term, but in the short-term forex traders are taking advantage of the EUR to make gains on the high yield of the currency.

Looking ahead to today, the most important economic indicator scheduled to be released from the Euro-Zone is the GfK German Consumer Climate at 7:00 GMT. Analysts are forecasting this figure to slightly decrease from its previous reading. Traders will be paying close attention to today’s announcement as a stronger than expected result may continue to bolster the EUR in the short-term. Traders are also advised to follow the Retail Sales figures coming out of Britain at 9:30 GMT, and the Unemployment Claims figures coming out of the U.S. at 12:30 GMT as these results may set the EUR’s main currency crosses going into next week.

JPY – Yen Continues its Slide against the EUR

The Yen completed yesterday’s trading session with mixed results versus its major currency pairs. The JPY was broadly unchanged versus the USD on Wednesday and finished the trading session at the 97.77 level. The JPY also saw bearishness against the EUR as the pair jumped by a notable 85 points to close at 132.67. Over the past month the pair has risen over 2,200 points as investors lost confidence in the Japanese currency. The JPY did make some impressive gains yesterday, however, against the GBP to close up nearly 90 points at 142.63. On a larger note, this only marks a slight reversal in the 2 currencies, as the JPY fell dramatically against the GBP in this week’s trading.

Japan’s export collapse may push sentiment among the nation’s largest manufacturers to the lowest level in more than 30 years in March, triggering more investment cuts and job losses. Export declines have set new records each month since November, as U.S. and European consumers have retrenched. The collapse in U.S. sales forced Toyota to cut thousands of jobs and slash domestic production by half this quarter. The automaker may not raise output until after the 3rd quarter of this year. Today, forex traders are advised to follow data releases coming out of Japan, the U.S., the Euro-Zone and Britain as these results are likely to set the short-term strength of the JPY.

Crude Oil – Oil Prices Strong Despite U.S Crude Oil Inventory Rises

Oil prices remained strong yesterday, as they only slid 12 cents, even though U.S. Crude Oil Inventories rose by a higher-than-forecasted 3.3 million barrels. The International Energy Agency (IEA) said that the inventories rose to 356.6 million barrels, which is 15.6% above price levels from one year ago, the highest level since 1993. If it wasn’t for the inventories data, Crude prices may have risen by several percent, as the U.S. released some impressive economic data. However, the New Home Sales and Core Durable Goods data helped prevent Crude prices from slipping on Wednesday.

It is important to take into account that Crude Oil prices have risen through the past 2 weeks, as the U.S. government plans to buy up toxic assets from banks. Additionally, the U.S. has continued to release a string of positive economic data. This has been compounded by a weaker Dollar that has also caused investors to flee to commodities such as Crude Oil. Furthermore, if the U.S. continues to publish more positive economic news, and if the American government continues to be aggressive in tackling the current financial crisis, then Crude prices may hit $60 Dollar by the middle of April.

Technical News

EUR/USD

This pair has been range trading for the past several days with a build-up towards what appears to be an intense volatile movement. After the sharp rise in price last week, the pair has been down-correcting to find its true value. With most oscillators beginning to go neutral, the daily chart’s RSI still shows this pair in the over-bought territory, meaning there is still room for a downward correction. The Bollinger Bands are tightening on the hourly chart. As such, we might be seeing some downward movement today. Going short might be a wise choice.

GBP/USD

This pair appears to be floating in the over-bought territory on the hourly and daily charts’ RSI, indicating a downward correction may be impending. The bearish cross on the daily chart’s Slow Stochastic also supports this notion. However, there does appear to be a bullish cross on the 4-hour chart’s Slow Stochastic, which demonstrates that this pair may actually be range trading with clear ups and downs. Buying on lows and selling on highs could be a good move throughout the day.

USD/JPY

The recent uptrend has pushed the price of this pair into the over-bought territory on the RSI of the hourly chart, signaling an imminent downward correction. A bearish cross may also be forming on the hourly and daily charts’ Slow Stochastic, which would support the notion of a downward move. Going short with tight stops might be a wise choice today.

USD/CHF

With relatively flat movement over the past several days, this pair has remained in a range-trading pattern for some time. Most oscillators are giving off neutral indicators, but there was a recent bullish cross on the daily chart’s Slow Stochastic, signaling a correction to the sharp downward movement from last week. With the weekly Momentum oscillator still showing an upward direction, going long with tight stops may be a wise choice today.

The Wild Card – NZD/USD

This pair’s sustained upward movement has finally pushed its price into the over-bought territory on the hourly and daily chart’s RSI. Not only that, but there actually appears to be a bearish cross either formed or forming on the hourly, 4-hour, and daily charts’ Slow Stochastic oscillators; all this information points to an imminent downward correction. Forex traders have the opportunity to wait for the downward breach and go short in order to ride out the impending wave.

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 GCI Fx Research

€

The euro depreciated vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.3430 level and was capped around the US$ 1.3675 level.  President Obama spoke last night and defended his budget proposal.  Obama also noted the U.S. dollar is “extraordinarily strong right now” and said he doesn’t see a need for a global reserve currency, an idea being promoted by China and Russia.  In contrast, U.S. Treasury Secretary Geithner today said he is open to the proposal but later clarified his remarks after the dollar fell sharply, noting the U.S. dollar would remain the main global reserve currency.  Some traders expect the proposal will gain some traction at the Group of Twenty meeting on 2 April.  Data released in the U.S. today saw Febuary headline durable goods orders climb an unexpected 3.4%, defying expectations of a modest decline, while February new home sales were up 4.7% to an annualized 337,000 last month – the first improvement in seven months.  On an annualized basis, however, new home sales were off 41.1% and durables were off 28.4% y/y.  Notably, orders for non-defense capital goods excluding aircraft were up 6.6% after falling 11.3% in January abd February building permits were upwardly revised to +6.2% from +3.0%.  Recent economic data in the U.S. have been encouraging but it is premature to say an economic recovery is afoot.  In eurozone news, French February unemployment was up 3.5% to 2.385 million and up 19% y/y.  Also, the German March Ifo index of business sentiment fell to a record low of 82.1, indicating a worsening recession in the eurozone’s largest economy.  Eurogroup chairman Juncker talked about reported U.S. pressure on the eurozone to increase fiscal stimulus spending saying “It is out of the question that we increase our economic stimulus plans.  I see a timid recovery towards the end of 2010.”  Euro bids are cited around the US$ 1.3245 level.

¥/ CNY

The yen appreciated vis-à-vis the U.S. dollar today as the greenback tested bids around the ¥96.90 level and was capped around the ¥98.35 level.  Bank of Japan Deputy Governor Yamaguchi reported the BoJ’s focus “will be placed, for the time being, on securing market stability and facilitating corporate financing.  The bank will continue to examine carefully developments in financial markets and corporate financing and to take necessary measures in a decisive manner without any predetermined view.”  Yamaguchi was pessimistic on Japan’s export outlook and said recently announced quantitative easing measures such as purchasing more bonds outright and providing subordinated loans to banks through the fiscal year-end next week may not be sufficient.  Furthermore, he said consumer prices may soon begin declining on a year-over-year basis.  BoJ Governor Shirakawa today testified “The country’s economy is facing downside risks and prices will likely soon start falling. But right now the country is not going through a vicious cycle where economic contraction and price falls reinforce each other.” The Nikkei 225 stock index lost 0.23% to close at ¥8,479.99.  U.S. dollar offers are cited around the ¥104.15 level.  The euro moved higher vis-à-vis the yen as the single currency tested offers around the ¥132.85 level and was supported around the ¥130.75 level.  The British pound moved lower vis-à-vis the yen as sterling tested bids around the ¥140.95 level while the Swiss franc moved higher vis-à-vis the yen and tested offers around the ¥87.20 level.  The Chinese yuan depreciated vis-à-vis the U.S. dollar as the greenback closed at CNY 6.8304 in the over-the-counter market, up from CNY 6.8294.

₤

The British pound depreciated vis-à-vis the U.S. dollar today as cable tested bids around the US$ 1.4515 level and was capped around the $1.4735 level.  Bank of England purchased corporate bonds worth ₤85.525 million in the secondary market today, part of its quantitative easing plan to ease credit strains.  U.K. Business Secretary Mandelson today reported the “era of the G8 is over.”  London will host the Group of Twenty meeting on 2 April.  Chancellor of the Exchequer Darling is expected to downgrade his growth forecasts and increase his borrowing estimates when he presents his budget on 22 April.  Prime Minister Brown today reported “The U.K. government will do whatever is necessary to revive growth, with global deflation the main danger in the short term.”  Cable bids are cited around the US$ 1.4410 level.  The euro moved higher vis-à-vis the British pound as the single currency tested offers around the ₤0.9375 level and was supported around the ₤0.9160 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.

Economic news out of the U.S. today was better than expected as durable goods orders and new home sales data both increased more than forecasted for the month of February.

Durable goods orders increased by 3.4 percent in February according to the report released by the U.S. Commerce Department. New orders for durables increased by $5.5 billion to a total of $169.6 billion for the month. Durable goods are products manufactured in the U.S. and generally considered to last more than three years.

February’s gain follows up a revised decrease of 7.3 percent in January and handily surpassed market expectations which had forecasted that orders would drop by 2.5 percent for the month.

New orders for durable goods, excluding transportation, gained by 3.9 percent in February beating market expectations that predicted a decrease of 2.0 percent.

New Home Sales in the U.S. also beat market expectations today and surpassed January’s revised new home sales total. The new home sales data, released by the Department of Commerce, rose by 4.7 percent in February for an annual rate of 337,000 sales following January’s revised total of 322,000 sales.

Market forecasts had expected that new home sales would decrease by 2.8 percent for a total of approximately 300,000 annual sales.

February’s annual sales rate when compared to February 2008, despite the monthly gain, is down by 41.1 percent. The median sales price of new homes equaled $200,900 in February which is a decrease from a median sales price of $206,800 in January. The average sales price came in at $251,000 for February which is an increase from January’s average price of $239,100.

US Dollar lower in Forex Trading so far today.

The U.S. dollar has been mostly lower in forex trading against the other major currencies today as the dollar has gained versus the British pound while falling against the euro, Swiss franc, Australian dollar, New Zealand dollar and the Canadian dollar.

The euro has advanced versus the dollar today as the EUR/USD has gained from its 1.3486 opening(00:00 GMT) to trading at 1.3599 in the afternoon of the U.S. trading session at 4:11pm EST according to currency data from Oanda.

The British pound fell today as the GBP/USD declined from its 1.4685 opening exchange rate to trading at 1.4558 usd per gbp. The dollar has declined versus the Japanese yen and trading at 97.35 after opening at the day at the 97.75 exchange rate.

The dollar has fallen slightly today versus the Canadian loonie as the USD/CAD trades at the exchange rate of 1.2291 after opening the day at 1.2301.

The dollar has fallen against the Swiss franc as the USD/CHF trades at 1.1192 after opening at 1.1299 today while the dollar has also been weaker against the Australian dollar and New Zealand dollar. The AUD/USD trades only slightly higher at 0.6979 after a 0.6975 opening while the NZD/USD trades at 0.5655 today after opening at the exchange rate of 0.5611.

USD/CHF Chart – The dollar falling sharply against the Swiss franc in forex trading today(30min chart).

Source: ForexYard

After yesterdays relatively calm trading session, today the economic calendar is filled with high impact data that threatens to sow large volatility into the market. From the wide range of news reports, ForexYard advises its traders to pay special attention to the German Business Climate, the U.S Durable Goods Orders, New Home Sales, and Crude Oil Inventories.

Economic News

USD – Dollar Rises as Investors See U.S Recovery

The U.S currency extended gains on its Japanese and European counterparts Tuesday as optimism about a U.S. government plan to remove bad assets from banks’ balance sheets prompted investors to resume safe haven bets on the Dollar. The USD rose versus the Japanese Yen to 97.87 from 96.94 Yen and against the EUR to $1.3464, up from $1.3633 late Monday. The Dollar also gained support from a growing view among market players that the Federal Reserve’s quantitative easing (buying U.S. Treasury debt that would massively expand the Fed’s balance sheet) would not undermine the valuation of the Dollar as many initially thought. The greenback however, slipped against the Pound, down to $1.4778, the lowest since Feb. 10th which was pushed up by an unexpected rise in U.K inflation.

The Fed’s plan that was announced on Monday by U.S. Treasury Secretary Geithner has caused the Dollar to halt last week’s slide, prompted as the Federal Reserve said its massive balance sheet expansion would include buying government debt. But despite the fact that the initial reaction to Fed quantitative easing was to sell the Dollar, some market participants reversed their views. Perhaps the U.S. will lead the global economy out of an economic recession. Although quantitative easing could lead to inflation as the money supply expands, economists said the other option is not to do anything, which could have more dire consequences for the dollar due to deflation and economic stagnation. It appears that in the long run the U.S. recovery plan has been benefiting the Dollar against both the Yen and the EUR.

EUR – EUR Slips vs. Dollar but Firm vs. Yen

The EUR came under pressure as Euro-Zone policy makers suggested Interest Rates in the region could fall further, just as data showed manufacturing and services sector activity continued to contract significantly. The currency fell 0.9% against the Dollar to $1.3508, down from the two month peak of $1.3739 touched last week. Against the Japanese yen the EUR rose 0.1% to 132.40 Yen having earlier struck 134.50 Yen. The European Central Bank (ECB) has announced that it has not used up all its room to maneuver Interest Rates. The news followed comments overnight from ECB President Jean-Claude Trichet, who again said the benchmark Rate could be cut to help kick-start the Euro-Zone economy.

On top of that, there was more negative news on the Euro-Zone economy, with key gauges of Euro-Zone services and manufacturing showing weal economic activity as firms slashed jobs and prices. The British Pound however, surprised with a rise of 0.7% against the USD at $1.4672 after data showed British annual CPI inflation rose to 3.2% in February from 3.0% in January. The Pound slumped 23% versus the EUR and 26% against the dollar last year as the U.K. economy slipped into its first recession since 1991 amid record losses at the nation’s banks, prompting the Bank of England to cut the main Interest Rates to a record low of 0.5% in 2009. In yesterday’s trading the GBP strengthened to 91.73 per EUR, the highest level since March 16, from 93.56 pence. Against the Yen, the currency jumped as much as 2.7% to 145.09, the strongest level since Dec. 1st. The U.K. currency may further advance against the USD toward $1.50 by May, if the GBP breaks through the key level of $1.4650.

JPY – Yen Declines as the Demand For Save Heaven Currency Diminishes

The Japanese currency inched up against the EUR and the AUD on Wednesday, pulling away from this week’s five-month low as a drop in Japanese equities tempered buying of higher-yielding currencies. The yen climbed to 131.39 per EUR from 131.81 late in New York yesterday, when it touched 134.51, the weakest level since Oct 21st. Although the Yen has regained some ground after dropping on Tuesday to a 5-month low against the EUR and a 4-month trough versus the Australian dollar, it is likely to stay on the back foot, analysts have said. The JPY reaction was subdued to data showing Japan’s trade balance returned to a surplus in February. The 82.4 billion Yen ($841.6 million) surplus contrasted with economists’ forecasts for a deficit of 10.9 billion Yen. The surplus comes after Japan posted its largest deficit ever in January, when exports fell sharply due to a slowdown in the global economy.

The Yen role as a safe haven currency has apparently diminished, and there has been little reason for traders to buy the yen actively. Investors were also reluctant to buy the Yen with the Bank of Japan having raised the amount of government debt it buys outright to thaw credit markets. Instead, investors continue to favor currencies whose central banks have Interest Rates above zero and look unlikely to use quantitative easing to get their economies moving, such as the Australian dollar.

OIL – Oil Remains Steady Ahead of U.S. Supplies Data

Crude Oil prices rose slightly on Tuesday after U.S. stock markets bounced off their lows amid optimism that the government’s plan to unburden banks of soured assets could help shore up the U.S economy. The gains were limited however, as dealers awaiting a round of U.S. Crude Oil Inventories data that analysts expected would show an increase in Crude stockpiles. Crude Oil rose to settle at $53.98 a barrel after hitting a 3 month high of $54.20 earlier in the day. Analysts said they expected Oil inventory data to be released by the U.S. Energy Information Administration on Wednesday to show a 1.2 million barrel build in crude stockpiles.

Energy demand in the world’s biggest consumer economy has been hard-hit by the economic meltdown, buffering inventory levels as global consumption has been shrinking for the first time in a quarter century. Oil prices have climbed from under $33 last December, partly due to aggressive supply cuts from the Organization of Petroleum Exporting Countries (OPEC), but remain almost $100 below last summer’s peak. OPEC agreed to hold output targets steady at its meeting in Vienna on March 15th due to concerns that higher prices may harm an ailing global economy. Ministers pledged to tighten compliance with record cutbacks agreed on last year to bolster Crude Oil prices.

Technical News

EUR/USD

After dropping close to 300 pips since the beginning of the trading week, the pair seems to be consolidating around the 1.3470 level. However, the MACD indicator on the 4-hour chart signals that the bearish momentum is still has potential. Going short appears to be the preferable choice today.

GBP/USD

The cable has been trading quite peacefully lately without making any sharp movements. And now, a bearish cross on the daily chart was formed, suggesting that the pair is on the verge of a downtrend. Going short with tight stops might be a good strategy today.

USD/JPY

After two failed attempts to breach the 98.50 level, it appears that the USD/JPY might have reached its weekly peak. Currently all oscillators on the 4-hour chart are giving bearish indications, and as the Bollinger Bands on the 1-hour chart are tightening, it seems that a downtrend could be initiated today.

USD/CHF

The pair’s 4-hour chart is showing bearish signals as a fresh bearish cross has formed on the Slow Stochastic Oscillator. The Bollinger Bands also appear to be tightening, indicating the potential for a violent breach. Going short with tight stops appears to be the preferable strategy for today.

The Wild Card – Crude Oil

Crude Oil touched on a 3-month high yesterday and appears to be reversing. The daily chart shows the RSI trading in the oversold region. Also a bearish cross has formed on the Slow Stochastic Oscillator, indicating the potential for a downward correction. This could be good a good opportunity for forex traders to profit by being short on Crude Oil today.

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.

Consumer Prices in the U.K. increased by 0.9 percent in February according to a report released today by National Statistics. The Consumer Price Index advanced more than expected and follows a 0.7 percent consumer price decrease in January. On an annual basis, the U.K. cpi has increased by 3.2 percent over the February 2008 level following the annual increase of 3.0 percent in January.  Market forecasts were expecting monthly consumer prices to increase by 0.3 percent and the annual gain to register 2.6 percent for the month.

Core consumer prices, excluding food and energy prices, increased by 1.6 percent on an annual basis in February following an annual increase of 1.3 percent in January. Market forecasts were predicting core inflation to register an annual increase of 1.3 percent for the month.

Contributing to the increased consumer prices were increases in food and non-alcoholic beverage prices.  Other price increases contributing to the higher cpi were recreation & culture, household goods and transportation costs which were boosted by an increase in the price of gasoline.

Forex – British Pound and US Dollar gain in forex trading today.

Today’s forex trading action has seen the British pound stronger today against most of its currency rivals.  The pound has made gains versus the euro, Swiss franc, Canadian dollar, Japanese yen and the U.S. dollar.

The euro dropped today versus the pound as the EUR/GBP trades at 0.9164 at 5:27pm EST after opening the day at 0.9310 at 00:00 GMT according to currency data by Oanda. The pound has increased against the U.S. dollar as the GBP/USD trades at 1.4679 after its open at the 1.4663 exchange rate. The pound has increased slightly versus the Japanese yen today at 143.59 yen per pound after its 143.33 yen per pound open.

The pound has advanced against its Swiss rival as the GBP/CHF has gone from its 1.6479 open to trading at 1.6619 later today while the pound has also gained against the Canadian dollar as the GBP/CAD trades at 1.8057 after opening the day at 1.7911.

Meanwhile, the U.S. dollar also had a good day in forex trading as the American currency put a stop to its recent slide against many of the major currencies.  The dollar advanced today versus the euro, Australian dollar, New Zealand dollar, Canadian dollar and Swiss franc while falling to the British pound and trading virtually unchanged against the Japanese yen.

News out of the U.S. today focused on the testimony of Fed Chairman Ben Bernanke and Treasury Secretary Tim Geithner before Congressional lawmakers in Washington.  The Congressional testimony centered on the A.I.G. issue and the circumstances of the government bailout.

Perhaps the most notable outcome of the meeting was the seeking of new powers by the Federal Reserve and Treasury Department that would grant them new authority to take over non-bank financial companies in case of a threat to the financial system. These new broad powers would have to be granted by Congress and could be used in the future for the problems that arose with companies such as A.I.G. and Lehman Brothers.

On tap for tomorrow is the US Durable Goods release that is expected to fall by 2.5 percent in February and also the New Home Sales data that is expected to show a drop by 2.8 percent in February.

EUR/GBP Chart – The Euro falling against the British Pound in Forex Trading today.

By GCI Fx Research

€

The euro depreciated vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.3475 level and was capped around the US$ 1.3675 level.  The big news in the market remains a growing chorus of countries that suggest a new international reserve currency be created – possibly in concert with the International Monetary Fund – to counter the U.S. dollar’s traditional role.  People’s Bank of China Governor Zhou has put forth this proposal and Russia has put forth a similar proposal.  Any indication that this plan could gain traction with or without the Group of Twenty’s involvement could be U.S. dollar negative.  In eurozone news, Bank of Italy official Panetta reported “the risks of a deflationary phase are intensifying” in the eurozone. Germany’s BGA Group said German exports may decline by up to 15% in 2009.  Data released in the eurozone today saw the January EMU-16 current account deficit print at -€12.7 billion, worse than December’s revised -€7.6 billion deficit.  Also, German March manufacturing PMI rose to 32.4 from 32.1 in February with the PMI services index at 41.7 with while EMU-16 February manufacturing PMI rose to 34 with the services index higher at 40.1.  Similarly, the French manufacturing PMI printed at 36.3 and it was also reported that French February consumer spending was off 2.0% m/m and 2.0% y/y.  In U.S. news, the March Richmond Fed manufacturing index improved to -20 from -51 in February.  Also, Redbook retail sales were flat m/m for the first three weeks of March.  Euro bids are cited around the US$ 1.2385 level.

¥/ CNY

The yen depreciated vis-à-vis the U.S. dollar today as the greenback tested offers around the ¥98.55 level and was supported around the ¥96.90 level.  Bank of Japan purchased ¥1.1 billion in equities from banks between 23 February and 20 March.  In February, BoJ decided to purchase ¥1 trillion in bank-owned shares through April 2010.  The yen was given across the board on increased risk appetite stemming from U.S. Treasury Secretary Geithner’s plan announced yesterday to purchase toxic assets through public-private partnerships.  Traders also paid close attention to BoJ Policy Board’s meeting minutes overnight.  The Nikkei 225 stock index climbed 3.32% to close at ¥8,488.30.  U.S. dollar offers are cited around the ¥104.15 level.  The euro moved higher vis-à-vis the yen as the single currency tested offers around the ¥134.50 level and was supported around the ¥132.00 figure.  The British pound moved higher vis-à-vis the yen as sterling tested offers around the ¥145.05 level while the Swiss franc moved higher vis-à-vis the yen and tested offers around the ¥87.70 level.  The Chinese yuan appreciated vis-à-vis the U.S. dollar as the greenback closed at CNY 6.8294 in the over-the-counter market, down from CNY 6.8335.

₤

The British pound appreciated vis-à-vis the U.S. dollar today as cable tested offers around the US$ 1.4775 level and was supported around the $1.4545 level.  Sterling was bid higher after February consumer price inflation expanded 0.9%, above expectations of a 0.2% gain.  These data suggest consumer price inflation may not be as weak as expected and this has led to speculation that Bank of England’s recently-launched quantitative easing measures may be relatively short-lived.  At the core level, core consumer price inflation rose 0.7% m/m and 1.6% y/y.  Other data saw February net mortgage lending grow to ₤3.9 billion from ₤3.4 billion in January.  BoE Governor King downplayed today’s surprising print in inflation and attributed the data to the decline in sterling.  King also reaffirmed BoE’s projections that inflation would undershoot its target band and said the conclusion of its quantitative easing framework would be dependent on inflation.  Moreover, he said BoE is trying to raise the savings rate and added quantitative easing measures may take up to six months to have an impact.  Cable bids are cited around the US$ 1.4410 level.  The euro moved lower vis-à-vis the British pound as the single currency tested bids around the ₤0.9170 level and was capped around the ₤0.9360 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.

Source: ForexYard

U.S. Treasury Secretary Timothy Geithner unveiled plans last week for a public-private partnership of investors buying out toxic banking and housing debt. Since that time, investors have been in a frenzy to sell off the USD and buy into various private investments, creating a rally on Wall Street, and intense volatility in the forex market. The recent make-or-break attitude of forex traders has generated such volatility that it could bring many investors back into the fold in order to capture profits from the large price swings which have occurred.

Economic News

USD – Dollar Moves on U.S. Banking Plan

The Dollar recorded a volatile trading session as the U.S. Treasury Secretary Timothy Geithner unveiled plans for a public-private partnership to buy the toxic debts of U.S. banks. In effect, Geithner’s speech led to a rally on Wall Street that resulted in a 7% rise in the Dow Jones and other indices. The other big factor that helped spur a rally on Wall Street was better-than-expected U.S. housing data. This showed a 5.1% increase in Existing Home Sales from January to February. As a result, the Dollar cut its losses that it made earlier on in the trading session against currencies such as the EUR.

The Dollar ended yesterday’s trading session with some mixed results against its major currency crosses. The Dollar closed down 9 points against the EUR to 1.3654. The Dollar gained 139 points against the Japanese Yen, as the USD/JPY rate approaches the 100.00 mark again. However, against the British Pound, the Dollar made some big losses. The USD dropped about 170 points to close at 1.4683 against the GBP. This comes about as Britain’s stock market and currency reacted very positively to the banking plan from the U.S.

Looking ahead to today, there are a number of economic news events and data releases coming out of the U.S. The House Price Index (HPI) and Richmond Manufacturing Index are set to be released at 14:00 GMT, and will be the two of the biggest indicators from the States. However, the news event that may have a very large impact on the Dollar and its main currency pairs in today’s trading is Federal Reserve Chairman Ben Bernanke’s speech around the same time. This speech is very important as he well be testifying with Timothy Geithner about the controversial American International Group (AIG) bailout. Traders are advised to watch closely, as this may lead to great volatility in Dollar trading.

EUR – Pound Jumps on U.S. Bank Rescue Plan

The Pound made very impressive gains in yesterday’s trading, as the U.S. Treasury Secretary Timothy Geithner unveiled an impressive and detailed banking plan to rescue U.S. banks, and uplift the U.S. housing sector. This led to the biggest rally on Wall Street since October. As a result, Britain and Euro-Zone stock markets made big gains as well.

The Pound rose by 170 points in Monday’s trading to close at 1.4683 against the USD. This was mainly owed to the fact that investor confidence poured back into the Pound as British banking shares soared in yesterday’s trading. Also, the Pound has been undervalued against the Dollar as of late. Against the EUR, the GBP gained an impressive 103 points to close at 0.9310, as the EUR/GBP has moved away from parity yet again. Also, news that Germany’s economy will decline by the most in the Western world this year, and unemployment in the Euro-Zone’s largest economy will reach 5 million by the end of 2010, helped push down the EUR/GBP. The GBP also rose by about 350 points against the JPY to close at 143.35, as traders dropped safe-haven assets in Monday’s trading.

Today, there is plenty of economic news coming out of both Britain and the Euro-Zone that will determine the GBP and EUR levels by the end of today’s trading. From the Euro-Zone, there are the Euro-Zone Flash Services PMI, Flash Manufacturing PMI, and Current Account figures that are expected to be published simultaneously at 9:00 GMT. From Britain, the most important news will be the Consumer Price Index (CPI) figures and Inflation Report Hearings at 9:30 GMT, and the Bank of England (BoE) Governor Mervyn King’s speech at 15:30 GMT. All these news events will be important in helping set the strength of the GBP and EUR in this week’s trading.

JPY – Yen Plummets against Dollar and EUR

The Yen plummeted against its major currency pairs in yesterday’s trading as investors ditched safe-haven assets for riskier ones. The Japanese stock market made notable gains too as the U.S. Treasury Secretary unveiled plans for a public-private partnership of investors buying out toxic banking and housing debt. This was the dominant factor leading to U.S. and global stock market rallies, and the ditching of safe-haven assets in yesterday’s trading. The Yen was also hit hard yesterday; as the government seeks everything in its power to reduce the value of the JPY in order to spur Japanese exports.

The Yen closed down by 139 points against the Dollar in Monday’s trading at the 97.74 level; the USD/JPY could be reaching the 100.00 mark in the near future. The EUR rose by 180 points against the Japanese currency to close at 133.47, as the safe-haven currency was dropped yesterday. Against the Pound, the Yen dropped a massive 350 points on Monday to close at 143.35. This comes about as the British currency reacted extremely positively to the banking news coming out of the U.S. As the Japanese economy continues to deteriorate, despite improvements from the U.S., expect the JPY to lose more ground against the major currencies in the coming days.

Crude Oil – Protests in Brazil and Increased Demand Help Raise Oil Prices

Crude Oil prices hit $54 yesterday, before settling at $53.62. This price is the highest Oil has been since December 2008, but still significantly lower than last July’s high of $147 a barrel. Crude prices increased yesterday for a number of reasons. However, the 2 main factors were the U.S. banking plan unveiled by U.S. Treasury Secretary Geithner to buy toxic banking assets, and the better-than expected housing data. Also, there were protests in Brazil, which have been going on for 5 days, which have helped put upward pressure on Crude prices.

China announced yesterday that demand for Oil increased by 0.5%, marking a recent reversal. The underlying reason that has led to stability in the Crude Oil market is the supply cuts by the Organization of Petroleum Exporting Countries (OPEC). It seems their strategy has worked, and if they continue to cut the supply, Crude prices are likely to rise further. Additionally, if the U.S. continues to publish good data, and Obama shows that he is able to lead the world out of recession, then Crude prices may hit the $58-$60 price level by week’s end.

Technical News

EUR/USD

The 4-hour chart is showing mixed signals with its RSI fluctuating in neutral territory. However, the daily chart’s RSI is already floating in the over-bought territory indicating that a bearish correction might take place in the nearest future. When the downwards breach occurs, going short with tight stops appears to be the preferable strategy.

GBP/USD

The bullish trend is losing steam and the pair seems to be consolidating around the 1.4690 level. The daily chart’s RSI is already floating in the over-bought territory suggesting that the recent upwards trend is losing steam and a bearish correction is impending. Going short with tight stops appears to be a preferable strategy.

USD/JPY

The daily chart is showing that the pair is still in the bullish configuration. However, the 4-hour chart’s RSI is already floating in the over-bought territory indicating that a bearish correction might take place in the nearest future. When the downwards breach occurs, going short with tight stops may be a wise tactic.

USD/CHF

There is a very accurate bearish channel forming on the daily chart as the pair is now floating in the middle. However, the pair currently sits near the bottom border of the hourly chart’s RSI, suggesting an upward correction may be imminent. If an upwards breach occurs, going long might be a good choice.

The Wild Card – Crude Oil

Oil prices rose significantly in the last week and peaked near $54 a barrel. However, the 4-hour chart’s RSI is floating in the over-bought territory, suggesting that the 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.

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 GCI Fx Research

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The euro appreciated vis-à-vis the U.S. dollar today as the single currency tested offers around the US$ 1.3735 level and was supported around the US$ 1.3485 level.  Traders are talking about U.S. Treasury Secretary Geithner’s plan announced today wherein the Treasury, Federal Reserve, and Federal Deposit Insurance Corporation will work with private investors in a “public-private partnership” to purchase troubled assets.  The government will allocate US$ 100 billion in funds from the Troubled Asset Relief Program (TARP) and additional private investment to generate at least US$ 500 billion in purchasing power to purchase “legacy assets.” This program could expand to US$ 1 trillion and most of these details were already priced in the market.  The government is expected to assume most of the risk with regard to this new plan and it remains to be seen how popular the new plan is in reducing systemic risk in the market.  Data released in the U.S. today saw February existing home sales rise 5.1% to 4.72 million annualized units while existing home sales fell 15.5% to US$ 165,400.  Also, the Chicago Fed’s national activity index  printed at -3.48 for the three-month period ending in February, up from -3.61 in the three months ending in January.  In eurozone news, the German government will revise its economic forecasts on 29 April and it is likely the current forecast of a 2.25% contraction for 2009 will be downwardly revised.  Data released in the eurozone saw the EMU-16 January trade deficit widen to -€10.5 billion.  European Central Bank member Weber reiterated the central bank has “room to maneuver” and said “unconventional” policy measures remain under discussion.  Euro bids are cited around the US$ 1.2385 level.

¥/ CNY

The yen depreciated vis-à-vis the U.S. dollar today as the greenback tested offers around the ¥97.35 level and was supported around the ¥95.40 level.  Technically, today’s intraday high was right around the 61.8% retracement of the move from ¥99.65 to ¥93.50.  The government released its January – March corporate sentiment survey and it weakened substantially to -51.3 from -35.7 in the October – December quarter.  These data suggest the Bank of Japan’s next quarterly Tankan survey could be extremely weak.  Other data released today saw residential and commercial land prices decline.  The Nikkei 225 stock index climbed 3.39% to close at ¥8,215.53.  U.S. dollar offers are cited around the ¥104.15 level.  The euro moved higher vis-à-vis the yen as the single currency tested offers around the ¥132.25 level and was supported around the ¥130.15 level.  The British pound moved higher vis-à-vis the yen as sterling tested offers around the ¥141.85 level while the Swiss franc moved higher vis-à-vis the yen and tested offers around the ¥86.30 level.  In Chinese news, the U.S. dollar closed at CNY 6.8335 in the over-the-counter market.  People’s Bank of China Governor Zhou today reported “The reestablishment of a new and widely accepted reserve currency with a stable valuation benchmark may take a long time.”

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The British pound appreciated vis-à-vis the U.S. dollar today as cable tested offers around the US$ 1.4650 level and was supported around the $1.4450 level.  Bank of England Monetary Policy Committee member Blanchflower reported the jobless total may grow to more than 3 million.  Blanchflower also reported it is better for BoE to err on the side of too much quantitative easing because there are tools to deal with hyperinflation but less to deal with hyperdisinflation.  Cable bids are cited around the US$ 1.4410 level.  The euro moved lower vis-à-vis the British pound as the single currency tested bids around the ₤0.9285 level and was capped around the ₤0.9430 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.

U.S. Existing Homes sales increased more than expected for the month of February according to the monthly report produced by the National Association of Realtors. The NAR report showed that existing-home sales including single family homes, co-ops and townhouses increased 5.1 percent in February to a seasonally adjusted annual rate of 4.72 million units. Economic forecasts were predicting a decrease of 0.9 percent for the month following a 5.3 percent decrease in January.

On an annual basis February’s existing-homes sales, despite the increase for the month, are 4.6 percent February 2007’s sales pace of 4.95 million units.

The median sales price for existing homes was $165,400 in February. The median sales price has fallen from $195,800 in February 2008 while total housing inventory showed an increase in February by 5.2 percent to a total of 3.80 million homes.

NAR chief economist Lawrence Yun commented on February’s increase and how discounts are bringing buyers into the market, “Because entry level buyers are shopping for bargains, distressed sales accounted for 40 to 45 percent of transactions in February.” Yun also talked about how sales in the western United States are turning around, saying “Strong sales gains in the West are led by California, where the median listing price is beginning to rise for the first time in three years.”

US Dollar mostly lower in Forex Trading today.

The U.S. dollar has been mostly lower today in forex trading against the other major currencies as stock markets have soared on details of the Obama Administration’s plan to buy up troubled bank assets. The Dow Jones Industrial Average has gained almost 400 points so far today while the Nadaq and the S&P500 have advanced approximately 75.00 points and 42.00 points, respectively.

The dollar, meanwhile, has been higher versus the euro, Japanese yen and the Swiss franc while falling against the Australian dollar, New Zealand dollar, Canadian dollar and the British pound.

The euro has declined versus the dollar today as the EUR/USD has fallen from its 1.3665 opening(00:00 GMT) to trading at 1.3628 in the afternoon of the U.S. trading session at 3:11pm EST according to currency data from Oanda.

The British pound climbed today as the GBP/USD has rose from its 1.4515 opening exchange rate to trading at 1.4552 usd per gbp. The dollar has advanced versus the Japanese yen and trading at 96.90 after opening at the day at the 96.39 exchange rate.

The dollar has fallen today versus the Canadian loonie as the USD/CAD trades at the exchange rate of 1.2271 after opening the day at 1.2330.

The dollar has gained against the Swiss franc as the USD/CHF trades at 1.1252 after opening at 1.1230 today while the dollar has also been weaker against the Australian dollar and New Zealand dollar. The AUD/USD trades at 0.7032 after a 0.6969 opening while the NZD/USD trades at 0.5704 today after opening at the exchange rate of 0.5651.

AUD/USD Chart – The Australian dollar advancing today versus the US dollar in forex trading.

Source: ForexYard

The announcement of a quantitative easing program by the Fed sent the Dollar dramatically lower against the major currencies. Traders may look to compound on the large price adjustment as short term forecasts are predicting further weakness in Dollar denominated pairs.

Economic News

USD – USD Strength Not Likely to Return this Week

Last week’s decision by the Federal Reserve to buy up U.S. Treasury securities has generated one significant result: an across-the-board sell-off of the USD. Jumping an unprecedented 334 points against the EUR directly following the announcement last Wednesday, the Dollar has continued to take hits through the end of last week and today. Two primary results occurred as a result of this sell-off. The first, as was just mentioned, was a volatile decreasing movement in the Dollar’s pairs and crosses. The second was a subsequent rise in the value of commodities like Crude Oil, which hasn’t seen such an upward movement since September.

With the global economy worsening consistently over the previous few months, major economies, such as the United States, are taking whatever measures they can to salvage their economic systems before a collapse takes place. One investment maneuver undertaken by many traders during economic hard times is to invest in a safe-haven currency, like the USD. This explains the influx of Dollars being purchased over the preceding months, which likewise drove the value of the USD to an inflated high. One perception of the recent turn of events might state that the USD is not crashing down or weakening, but rather, returning to its more realistic value.

One thing many forex traders can be sure of is that the downward movement of the USD is not likely to cease in the short-term. At the moment, the U.S. Federal Reserve is basically printing almost $1 trillion worth of new currency. Regardless of any speculation about future price levels, the present moment dictates that the greenback must come down, at least for now. The economic calendar might lend some strength to the USD in the form of potentially positive housing data, however. Could this information be enough to prevent the continued fall of the Dollar?

EUR – Will the EUR Hold its Recent Gains?

A bullish EUR appears to be the order of the day lately. After the U.S. Federal Reserve announced its quantitative easing program, the EUR climbed to a high not seen in months against its primary currency rival, the USD. Shooting above the 1.3700 mark last Thursday and Friday, the pair appears to have settled down slightly at the beginning of this week starting with a small increase in value from 1.3582 to 1.3656 so far. Against the Pound, the EUR has also seen some small gains in today’s early trading hours; currently trading at 0.9416.

While many analysts anticipate the USD to grow significantly weaker in the coming days, there is also talk of similar quantitative easing strategies being implemented in the Euro-Zone by the European Central Bank (ECB). If such a move were to be taken by the ECB there is a possibility of a mad dash to sell-off the EUR similar to what occurred to the USD last Wednesday. Could there be a race to the bottom between these 2 currencies?

Most importantly this week, traders are going to see a sizeable amount of economic data from the Euro-Zone, primarily on Tuesday with the announcement of multiple French and German manufacturing and production figures. If we see a continuation of negative data from this region, there is a high possibility of the Euro-Zone implementing measures similar to what the Fed did for the U.S. economy. If this happens, expect the EUR to put a halt to its recent gains, and most likely reverse against most of its pairs and crosses by sometime this week or next.

JPY – Yen Weakness Prevalent at the Start of this Week

The JPY has seen some odd behavior this past week. Appreciating against the USD directly after the announcement of the Fed’s new quantitative easing program, the JPY actually lost value against most other currencies. This highlights two important analytical points. First, the USD’s recent weakness is due to the Fed’s program and not a coincidental strengthening of other currencies. Second, the JPY is in fact weakening as a result of monetary policies undertaken by the Bank of Japan (BoJ) recently.

Trading up at 96.38 against the USD, and down at 131.82 against the EUR, the JPY may actually begin to post steady losses throughout this week due to recent actions by the BoJ to lower the value of the Japanese currency in an effort to boost exports. A steady release of economic figures this week may demonstrate the inherent weakness of the JPY and thus push its value lower against all currency pairs, or it could show that the Japanese economy is beginning to rebound and thus spark a trend reversal for the Yen. Only time will tell.

OIL – Oil Rises beyond $50 a Barrel; Upward Movement to Continue?

As part of the weakening USD seen last week, the price of Crude Oil has seen a corresponding increase in value. The price for a barrel of Crude Oil climbed above the $50 mark last Friday and appears to be continuing in an upward direction. No doubt the quantitative easing taking place in the U.S., thereby weakening the Dollar, has carried an impact on the price of this commodity since it is traded in Dollars.

Secondly, the price for a barrel of Crude Oil is affected by supply as much as it is affected by the strength of the USD. With production cuts beginning to take effect, the Organization of Petroleum Exporting Countries (OPEC) has declared that Crude Oil prices appear to be stabilizing and may return to a more suitable price level in the nearest future. As long as the USD continues to weaken and equity markets remain in a somewhat bullish posture, the price for a barrel of Crude is not likely to go south anytime soon.

Technical News

EUR/USD

After touching a base at 1.3724, the pair now is consolidating a bit higher near the 1.3680 level. All oscillators show that the bullish momentum will probably continue. The Slow Stochastic of the 4-hour chart is showing no crosses in the horizon, and the bullish momentum there appears to be intact as well. On the daily chart, this pair is still trending upwards and there are no imminent indications of a reversal. Therefore traders can maximize profits by entering steady long positions.

GBP/USD

The Cable has resumed its bullish trend and is attempting to breach the 1.4585 level. Should the breach take place, the pair might further extend its bullish run, with a potential price target of 1.4620.

USD/JPY

It seems that the pair has limited its bullish correction after testing the 98.94 level. Currently a bearish cross took place on the hourly chart’s Slow Stochastic. The resumption of the bearish trend looks possible. Going short with tight stops might be the right strategy today.

USD/CHF

The pair’s movement is quite moderate and characterized a slight bearish move. Indicators on the 4 hour level shows mixed signals, as the daily studies are still a bit bearish. Waiting for a clear signal on the hourly level before entering the market might be wise.

The Wild Card – NZD/USD

The pair is in the middle of a strong bullish move ever since it peaked at 0.5283, and is now traded at 0.5663. The pair continues its nonstop upward journey overlooking every possible support level and shows no sign of a stop. All oscillators on the daily chart are still bullish and the trend appears to have more room to run. Forex traders should note that being long on the pair appears to be a wise move for the day.

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.