Forex Blog by Greg Secker

On Friday the FTSE 100 closed up just 2 points at 4,236 gaining support from 4,220. Wall Street was closed on Friday because of the Independence Day celebrations. The DAX in Germany closed down 10 points at 4,708. Forex news: Last week ended with dollar strong across the board and especially the euro, as the pair fell below important 1.40, amid renewed worries about the state of global economy and the so called recovery.  Today, USD high news at 3pm with ISM Non-Manufacturing PMI and NZD business confidence. High news at 11pm.

Yesterday – notes Greg Secker – the FTSE closed down 106 points at 4,234, and fell heavily because of poor NFP figures. There is a support line forming at 4,215.The Dow closed down 225 points at 8,280 and is resting just above a support line forming at 8,240. The S&P closed down 27 points at 896 and closed under the 50ema. Forex news:  Unemployment in the Euro Zone and the US have reached a parity, both are now at 9.5%.  USD and JPY gained against major currencies yesterday, as weak job market data from the US and Europe led to increased investor risk aversion.  Key economic releases today, include the releases of service sector activity data from the UK at 9:30am.  Also today is a bank holiday in the US.

Yesterday – notes Greg Secker – the FTSE 100 closed up 91 points at 4,340 breaking through minor resistance. The price is now mid-way between the 2 major moving averages. The Dow closed up 57 points at 8,504 and in doing so closed above the key level of 8,500. The Dow is now starting to form a small consolidation between her major moving averages.Forex news:  USD is supported by comments from Chinese Vice Foreign Minister He Yafei, who stated that the dollar would “remain stable,” easing concern it will lose its reserve status.  Overall, high yielding and emerging market currencies are trading lower against the USD and JPY, as investors remained cautious ahead of the release of US non-farm payroll data, resulting in higher demand for safe haven assets. At 12:45pm, EUR Minimum bid rate followed by ECB press conference at 1:30pm and the big one, Non Farm Payroll at 1:30pm.  We will  not place any trades today.

Yesterday – notes Greg Secker – the FTSE closed down 44 points at 4,249 and is looking like is forming in a little channel between 4,300 and 4,215. The Dow closed down 84 points at 8,446, gaining support from 8,400 and the 50ema. Forex news: In high news today GBP manufacturing PMI at 9:30am.  USD ADP Non-Farm employment change at 1:15pm and ISM Manufacturing PMI at 3pm could create high volatility as preliminary results to Non-Farm payroll due to be released tomorrow, a day early as Friday is bank holiday in the US.  We will not place any trades today and tomorrow.