By Greg Holden – Going into this week’s closing there are 2 pieces of vital information traders can focus on. The first are the news releases outlined below. The second is the recent upswing by the EUR, which some analysts consider hollow.
The Canadian news releases detailed below are much more important in today’s trading than they otherwise would be simply because the other major world economies will be relatively silent. The economic calendar is moderately empty today and this makes Canadian employment data the largest market-mover we’ll see.
The EUR’s recent upswing, which has helped it to exit out of its downtrend with the USD, is considered hollow due to the fact that currencies such as the GBP have already pared the EUR’s gains. It stands to show that this support may not sustain itself despite the surge in optimism following Jean-Claude Trichet’s statements yesterday.
Today’s leading events:
11:00 GMT: CAD – Employment Change/ Unemployment Rate
– Canadian employment figures don’t tend to have a large impact on other world economies. However, there is a possibility that today’s releases will indeed have a large impact since other economies will be absent from today’s calendar.
– Even though the USD/CAD’s bearish channel was broken recently, the pair seems to have re-entered this trend. Should today’s employment figures come in as expected, or better, there is a strong chance that a new bearish channel will form.
Crude Oil Tips:
– Given that the USD and Crude Oil are going to be absent from today’s calendar, traders are advised to watch the price of Crude Oil simply because it has little reason to exit its current trend.
– While it is true that Crude Oil prices have met resistance and turned downwards recently, yesterday’s Dollar weakness has helped push oil prices back up. Since little news is going to be released which will adversely affect this trend, it is relatively safe to say that oil is a good asset to buy into for the short-term in today’s trading.
Forex Market Analysis provided by Forex Yard.
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