By Russell Glaser – The Bank of Japan pledged 10 trillion worth of new loans in the local currency to Japanese financial institutions. However, traders scoffed at this initiative and continued to bid up the yen. Perhaps only direct intervention by the BOJ will provide some respite for Japanese exporters who are feeling the sting of a strong local currency.
Today’s Major Data Releases:
EUR – German Unemployment Change – 07:55 GMT
Expected: -19K. Previous: -20K.
Germany is Europe’s largest economy and therefore has the most influence on the direction of the euro.
CAD – GDP m/m – 12:30 GMT
Expected: 0.2%. Previous: 0.1%.
America’s largest trading partner is reports Q2 GDP today. Expectations aren’t high with only 0.2% growth forecasted due to the slump in oil prices.
USD – CB Consumer Confidence – 14:00 GMT
Expected: 50.7. Previous: 50.4.
Consumer spending is the engine of the US economy. Strong numbers should be favorable for the greenback
EUR/USD – The pair has broken out of a bearish flag pattern. The 1.2610 support should be tested today. A breach below this level could send the pair to the 1.2465 support level.
Yen – Until the BOJ starts selling yen on the open market, there is no reason to be short on the Japanese currency.
Spot Crude Oil – 3 days of consecutive gains were snapped yesterday, but this shouldn’t stop the rising price. The next resistance level for spot crude oil rests at $75.50.
Forex Market Analysis provided by ForexYard.
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