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Oil Drops Heavily

Submitted by Forex News on Wed, 03/09/2008 - 4:27am.
In Major Currencies | Market Reactions
Forex currency price chart of XAU and USD

Oil drops heavily as Gustav fears fade

U.S. Dollar Trading (USD)

U.S. Dollar Trading (USD) Public Holiday, big moves on Oil as Hurricane Gustav fails to make impact helped the dollar to make gains. Looking Ahead, Aug ISM expected to fall slightly to 49.7 vs. 50.0 previously. UPDATE OIL breaks below $110 a barrel

European Euro

The Euro (EUR) tracked Oil movements closely, weakening as Oil softened. German July retail Sales were confirmed as a weak -1.5% m/m. Eurozone PMI was confirmed at Overall the EUR/USD traded with a low of 1.4583 and a high of 1.4717 before closing the day at 1.4605 in the New York session. Looking ahead, July Eurozone PPI is expected to gain 1.3% in July.

Japanese Yen (JPY)

The Japanese Yen (JPY) continued to make gains against most currencies as the USD/JPY broke the key level of 108. Weak Japanese stocks weighed. Overall the USDJPY traded with a low of 107.63 and a high of 108.67 before closing the day around 108.20 in the New York session.

Pound Sterling (GBP)

The Sterling (GBP) broke through 180 as downside momentum accelerated. Overall the GDP/USD traded with a low of 1.7985 and a high of 1.8128 before closing the day at 1.8020 in the New York session. Looking ahead, Government Stimulus package is expected to be released.

Australian Dollar (AUD)

The Australian Dollar (AUD) weighed down by commodity sales and lack of support from the AUD/JPY. Overall the AUD/USD traded with a low of 0.8485 and a high of 0.8580 before closing the US session at 0.8485. UPDATE RBA cuts rates by .25%

Gold

Gold (XAU) fell heavily as Oil continued to slide. Overall trading with a low of USD$817.20 and high of USD$835.30 before ending the New York session at USD$818 an ounce.

Technical Analysis: Oil Drops Heavily

Euro (EUR)

Euro – 1.4575 : Initial support at 1.4440 (Feb 7 low) followed by 1.4366 (Jan 22 low). Initial resistance is now located at 1.4728 (Sept 1 high) at followed by 1.4811 (Aug 26 high).

Yen (JPY)

Yen – 108.10 : Initial support is located at 107.63 (Aug 29 low) followed by 107.29 (Aug 1 low). Initial resistance is now at 108.8 (Sep 1 high) followed by 110.29 (Aug 25 high).

Pound Sterling (GBP)

Pound – 1.7915 : Initial support at 1.7821 (Apr 27 2006 low) followed by 1.7754 (Apr 21 2006). Initial resistance is now at 1.8211 (Sep 1 high) followed by 1.8344 (Aug 29 high).

Australian Dollar (AUD)

Australian Dollar – 0.8495 : Initial support at 0.8276 (Sept 18 2007 low) followed by 0.8173 (Sep 10 2007 low). Initial resistance is now at 0.8586 (Sep 1 High) followed by 0.8694 (Aug 28 high).

Gold (XAU)

Gold – 815 : Initial support at 807.40 (Aug 22 low) followed by 801 (Aug 20 low). Initial resistance is now at 835.5 (Sep 1 high) followed by 844 (Aug 28 high).

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Dollar Surged as Oil Broke

Submitted by Forex News on Wed, 03/09/2008 - 1:59pm.
In Major Currencies | Market Reactions
Forex currency price chart of GBP and USD

Oil breaks $110 a barrel, Dollar Surges

U.S. Dollar Trading (USD)

U.S. Dollar Trading (USD) made significant gains as Oil dropped below $110 a barrel, especially against the commodity Bloc currencies. US August ISM Manufacturing came in near expectations at 49.9 vs. 50 previously. Oil driven stock gains were unable to be maintained as banks came under pressure one again. In the U.S. share markets, the NASDAQ was down 18 points (-0.77%) and the Dow Jones was down 26.50 points (-0.23%). Crude Oil closed down $-5.75 ending the New York session at $109.71 per barrel. Looking ahead, July Factory Orders are forecast to temper slightly to 1% from 1.7% in June.

European Euro

The Euro (EUR) hit 7 month lows below 1.45 as Oil hit lows of $105 per barrel. July PPI fell slightly below forecasts at 1.1% vs. 1.3% expected but still significantly higher than long term averages. Overall the EUR/USD traded with a low of 1.4466 and a high of 1.4617 before closing the day at 1.4520 in the New York session. Looking ahead, August PMI Services are expected at 48.2. Also released July Retail Sales forecast to be flat 0.0% m/m and -2.1% y/y. Eurozone Q2 GDP revised GDP expected to remain at -0.2% Q/Q vs. 0.7% Q1.

Japanese Yen (JPY)

The Japanese Yen (JPY) after heavy gains on the crosses lead by AUD/JPY and GBY/JPY a broad based recovery on the back of buoyant stocks was lead by the USD/JPY. BOJ Governor Shirakawa spoke of downsides risks for growth but expected inflation to mediate. Overall the USDJPY traded with a low of 107.77 and a high of 109.19 before closing the day around 108.70 in the New York session.

Pound Sterling (GBP)

The Sterling (GBP) came under continued downside pressure as an OECD report predicted a UK recession. New Multi ear lows were touched as commodities slump and EUR/GBP hit record highs around .8160. Overall the GDP/USD traded with a low of 1.7778 and a high of 1.8002 before closing the day at 1.7820 in the New York session. Looking ahead, August PMI services are expected to fall slightly to 47 from 47.4.

Australian Dollar (AUD)

The Australian Dollar (AUD) enjoyed a brief bounce after a less dovish than expected statement accompanying the 25bps rate cut. The rate cut was the first in Australia for 7 years and came after numerous economic reports pointed to a sharp slowdown. Subsequent falls in commodities provided the catalyst for a significant sell off with the AUD falling over 2 cents before recovering. Overall the AUD/USD traded with a low of 0.8270 and a high of 0.8534 before closing the US session at 0.8380. Looking ahead, Q2 GDP is forecast at 0.4% down slightly from 0.6% in Q1.

Gold

Gold (XAU) fell heavily as Oil continued to slide breaking the Key $800 level before recovering as Oil retraced some losses. Overall trading with a low of USD$791.30 and high of USD$818.75 before ending the New York session at USD$818 an ounce.

Technical Analysis: Dollar Surged as Oil Broke

Euro (EUR)

Euro – 1.4530 : Initial support at 1.4440 (Feb 7 low) followed by 1.4366 (Jan 22 low). Initial resistance is now located at 1.4617 (Sept 2 high) at followed by 1.4728 (Sept 1 high).

Yen (JPY)

Yen – 108.60 : Initial support is located at 107.63 (Aug 29 low) followed by 107.29 (Aug 1 low). Initial resistance is now at 109.18 (Sep 2 high) followed by 110.29 (Aug 25 high).

Pound Sterling (GBP)

Pound – 1.7835 : Initial support at 1.7754 (Apr 21 2006 low) followed by 1.7680 (Apr 18 2006). Initial resistance is now at 1.8015 (Sep 2 high) followed by 1.8211 (Sept 1 high).

Australian Dollar (AUD)

Australian Dollar – 0.8370 : Initial support at 0.8271 (Sept 2 low) followed by 0.8173 (Sep 10 2007 low). Initial resistance is now at 0.8535 (Sep 2 High) followed by 0.8586 (Sept 1 high).

Gold (XAU)

Gold – 805 : Initial support at 783.35 (Aug 19 low) followed by 773.5 (Aug 15 low). Initial resistance is now at 835.6 (Sep 1 high) followed by 844 (Aug 28 high).

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