The Fusion Media Network: |
 |
Welcome,
Guest!
- BROKERS
Main Directory Promotions Interviews Compare Demo Accounts Live Accounts Special Offer - SOFTWARE
Main Charts Signals Trading Platforms - FUND MANAGERS
Main Interviews - EDUCATION
Main - MEMBERSHIP
Technical
Central Banks
Forex Brokers
Trading Tools
Scope for more USD strength?
By: Saxo Bank - 11-12-2006
0votesEURUSD likely to retrace towards 1.3030 before heading higher.
MAJOR HEADLINES – PREVIOUS SESSION
Japanese Consumer Confidence (Nov) out at 48.9 vs. 48.8 expected.
Japanese Consumer Confidence Households (Nov) out at 48.7 vs. 48.8 expected.
French Industrial Production MoM (Oct) out at -0.1% vs. 0.5% expected.
French Manufacturing Production MoM (Oct) out at 0.3% vs. 0.8% expected.
Swedish AMS Unemployment Rate (Nov) out at 3.7% vs. 3.9% expected.
Norwegian CPI figures as expected, but PPI figures a tad lower than expected.
UK PPI Input MoM (Nov) out at 0.1% vs. -0.1% expected.
UK PPI Output MoM (Nov) out at 0.0% as expected.
UK Trade Balance figures (Oct) slightly worse than expected.Themes to Watch
A story in the Japanese Jiji News stated that the BoJ would keep rates unchanged. This resulted in yet another round of JPY selling across the board, supported by a streak of weak Japanese macro economic data recently. Both CPI figures, GDP figures and other, monthly releases are still painting a picture of an economy struggling to overcome the deflation and stagnation since 1990. The hope (for Carry Traders, at least) seems to be that JPY will forever stay a weak and struggling funding currency vs. the high yielders.
US Treasurer, Paulson, was out in China on Friday, calling for more "foreign exchange rate flexibility", which theoretically equals a lower USD/CNY exchange rate. The market reacted by sending the USD higher, not lower. This tells us that there was a critical mass looking for a trigger to buy USD. In other words, EURUSD is no longer a one-way street as it was after the break of 1.2980. Look for a retracement towards the 1.3030-area (key Fibonacci retracement).
FX Order Book
Note that USDCAD is close to being a buy. Actually, it broke key resistance around 1.15, but price action was a bit too messy to generate further interest in the cross. Perhaps, we need a break of 1.1535-40 to get a stronger upside...
Next Analysis: US Trade Balance for November Best in a YearContent Provided by:
Saxo Bank
Company Description: Founded in 1992, Saxo Bank officially attained European bank status in June 2001 and has rapidly risen to become a strong presence in online trading over the Internet. Saxo Bank is based in Copenhagen, Denmark and was founded by joint CEOs Lars Christensen and Kim Fournais.
DISCLAIMER:
Saxo Bank A/S shall not be responsible for any loss arising from any investment based on any recommendation, forecast or other information herein contained. The contents of this publication should not be construed as an express or implied promise, guarantee or implication by Saxo Bank that clients will profit from the strategies herein or that losses in connection therewith can or will be limited. Trades in accordance with the recommendations in an analysis, especially leveraged investments such as foreign exchange trading and investment in derivatives, can be very speculative and may result in losses as well as profits, in particular if the conditions mentioned in the analysis do not occur as anticipated.
Become a member and get 6 free Forex courses by OTA! - Charts
- Survey
What is your favorite Financial News source?
Browse The Entire ForexPros.com Site:
News
Quotes
Forex Analysis
Forex Brokers
Forex Software
Live Events
Charts
Fund Managers
Education
Forex Forums
Languages
