Forex Trading

archives

Biggest US Stock Rally

Submitted by Forex News on Tue, 14/10/2008 - 8:25pm.
In Major Currencies | Market Reactions
Forex currency price chart of USD and JPY

Biggest US Stock rally in 70 years

U.S. Dollar Trading (USD)

U.S. Dollar Trading (USD) News that the US was taking part in the Global coordinated Banking Bailout sent US stocks surging. The 900 point rally negated a lot of the risk aversion seen in the market last week and led to profit taking on long USD positions seen in the market. In the U.S. share markets, the NASDAQ was up 194 points (11.81%) and the Dow Jones was up 936 points (11.08%). Crude Oil closed up $3.49 ending the New York session at $81.19 per barrel.

European Euro

The Euro (EUR) was able to make small gain against the USD although fell against the GBP and AUD. The stock recovery enabled large gains against the YEN but the market was not as enthusiastic to change direction as in other pairs. Overall the EUR/USD traded with a low of 1.3460 and a high of 1.3681 before closing the day at 1.3600 in the New York session. Looking ahead, the October German ZEW Economic Survey is expected at -15 vs. -1 previously. Also released the August Industrial production is expected at +1.1% vs. -0.3%.

Japanese Yen (JPY)

The Japanese Yen (JPY) was sold across the board as the main recipient of safe haven flows gave back some of its significant gains from last week. Resistance on the USD/JPY up towards 102 held for some time before being overwhelmed by record breaking stock gains. AUD/JPY jumped over 10%. Overall the USDJPY traded with a low of 99.59 and a high of 102.20 before closing the day around 102.00 in the New York session.

Pound Sterling (GBP)

The Sterling (GBP) surged inline with other carry currencies gaining against all except the exuberant AUD. EUR/GBP dropped below 0.7800 and cable found resistance above 1.7400. A BoE member warned of a ‘prolonged and severe recession’. Overall the GDP/USD traded with a low of 1.6869 and a high of 1.7447 before closing the day at 1.7400 in the New York session. Looking ahead, September CPI is seen up 0.4% vs. 0.6%. Also released September Retail Price Index seen at 0.5% vs. 0.3% previously.

Australian Dollar (AUD)

The Australian Dollar (AUD) jumped higher as the market regained confidence in the banking sector and the US FED flooded dollars into the money market. Buoyant Oil also helped the view that recent falls in commodities may have found a bottom. Huge AUD/JPY buying supported. Overall the AUD/USD traded with a low of 0.6546 and a high of 0.7080 before closing the US session at 0.7000. Looking ahead, September business confidence fell to -8 from -7 previously.

Gold

Gold (XAU) fell as the precious metal’s safe haven status was dented by the record breaking stock market rally. Overall trading with a low of USD$823 and high of USD$871 before ending the New York session at USD$833 an ounce.

Technical Analysis: Biggest US Stock Rally

Euro (EUR)

Euro – 1.3600 : Initial support at 1.3405 (Oct 13 low) followed by 1.3259 (Oct 10 trend low). Initial resistance is now located at 1.3684 (Oct 13 high) at followed by 1.3786 (Oct 9 high).

Yen (JPY)

Yen – 102.05 : Initial support is located at 99.58 (Oct 13 low) followed by 97.91 (Oct 10 trend low). Initial resistance is now at 103.29 (Oct 7 low) followed by 104 (Key level).

Pound Sterling (GBP)

Pound – 1.7410 : Initial support at 1.6909 (Oct 10 low) followed by 1.6781 (June Nov 11 2003 low). Initial resistance is now at 1.7442 (Oct 9 low) followed by 1.7658 (Oct 7 high).

Australian Dollar (AUD)

Australian Dollar – 0.6995 : Initial support at 0.6877 (Oct 8 low) followed by the 0.6437 (Oct 10 low). Initial resistance is now at 0.7148 (Oct 8 high) followed by 0.7355 (Oct 7 high).

Gold (XAU)

Gold – 833 : Initial support at 823 (Oct 13 low) followed by 820 (Oct 2 low). Initial resistance is now at 872 (Oct 13 high) followed by 930.25 (round number).

add new comment | read more»

USD Regains Strength

Submitted by Forex News on Wed, 15/10/2008 - 4:51pm.
In Major Currencies | Market Reactions
Forex currency price chart of AUD and USD

Stock Rally stalls then free falls, USD regains Strength

U.S. Dollar Trading (USD)

U.S. Dollar Trading (USD) was initially on the back foot as large equity gains around the world (+14% Nikkei) led to reversal of safe haven buying which had supported the Dollar previously. The losses were mild though and as US stocks reversed direction from highs the USD strengthened. With little economic data yesterday, focus turned to weak earning outlooks and the Dow slipped up to 800 points from highs. The latest banking crisis bailout news concerned the US treasury’s $250 capital injection into the banking system. In the U.S. share markets, the NASDAQ was down 65 points (-3.54%) and the Dow Jones was down 76 points (-0.82%). Crude Oil closed down -$2.56 ending the New York session at $78.63 per barrel. Looking ahead, September PPI expected at 0.2% and Retails sales are seen negative for the 3rd month in a row at -0.7%.

European Euro

The Euro (EUR) gained as Oil and stocks surged during the Asian and European sessions. A very weak German ZEW survey in October was largely ignored because it took place mainly last week during the stock crash. Gains were pared as US stocks reversed. Overall the EUR/USD traded with a low of 1.3609 and a high of 1.3768 before closing the day at 1.3650 in the New York session. Looking ahead, EU September CPI is expected at 0.3%.

Japanese Yen (JPY)

The Japanese Yen (JPY) continued to add to losses yesterday as the Nikkei had a record gain and risk appetite continued to recover. The recovery was put on hold as the Dow fell heavily from highs. USD/JPY remained relatively well bid. Overall the USDJPY traded with a low of 101.53 and a high of 103.05 before closing the day around 102.00 in the New York session. Looking ahead, Japanese Industrial Output for August previously at -3.5%.

Pound Sterling (GBP)

The Sterling (GBP) made large gains yesterday pushing the recovery enveloped further as it tracked the EUR higher and took advantage of the weaker USD. In a sign of the very illiquid conditions in the FX markets, when the US equities reversed the GBP crumbled. CPI was slightly stronger than expected at 5.2%Y/Y rate. Overall the GDP/USD traded with a low of 1.7394 and a high of 1.7629 before closing the day at 1.7400 in the New York session. Looking ahead, Claimant count seen at 35K in September and the Unemployment rate in August expected to tick higher to 5.6% from 5.5%.

Australian Dollar (AUD)

The Australian Dollar (AUD) continued to be very well supported as stocks headed higher. With a remarkable correlation the AUD tracked the US stocks down late in the day. Initially the Aussie found support from the rebound in commodities and extremely buoyant Asian Stock market. Also of note yesterday was the release of the Australian $10 billion stimulus package to help the economy through the credit crisis. Overall the AUD/USD traded with a low of 0.6938 and a high of 0.7236 before closing the US session at 0.7000.

Gold

Gold (XAU) recovered early in Asia but came off as Oil fell below $80 in the US session. Risk aversion fell yesterday as Interbank lending rates lowered for the first time in weeks. Overall trading with a low of USD$832 and high of USD$852.50 before ending the New York session at USD$837 an ounce.

Technical Analysis: USD Regains Strength

Euro (EUR)

Euro – 1.3550 : Initial support at 1.3405 (Oct 13 low) followed by 1.3259 (Oct 10 trend low). Initial resistance is now located at 1.3786 (Oct 9 high) at followed by 1.3882 (Oct 9 high).

Yen (JPY)

Yen – 101.60 : Initial support is located at 99.58 (Oct 13 low) followed by 97.91 (Oct 10 trend low). Initial resistance is now at 103.07 (Oct 7 low) followed by 103.29 (Key level).

Pound Sterling (GBP)

Pound – 1.7390 : Initial support at 1.7334 (Oct 14 low) followed by 1.6909 (Oct 13 low). Initial resistance is now at 1.7656 (Oct 8 low) followed by 1.7725 (Oct 8 high).

Australian Dollar (AUD)

Australian Dollar – 0.6935 : Initial support at 0.6435 (Oct 13 low) followed by the 0.6331 (Oct 10 low). Initial resistance is now at 0.6970 (Oct 14 high) followed by 0.7239 (Oct 7 high).

Gold (XAU)

Gold – 841 : Initial support at 823 (Oct 13 low) followed by 820 (Oct 2 low). Initial resistance is now at 872 (Oct 13 high) followed by 930.25 (round number).

add new comment | read more»