The Euro looks strong today after its recent rallies. The EUR is up from it open at around the 1.4687 mark. Resistances are at 1.4680/85 and 1.4720. Cable has fallen lower this morning, but is currently bouncing just below it’s open at the 1.6477 level. Technical supports 1.6450/55 and 1.6400/05, resistances 1.6510/20, 1.6550. Event risk looms today in form of latest jobs report. Jobless claims for August expected +25.0k, claimant count 5.0%, ILO July unemployment up to 8% from 7.8%. JPY is showing weakness against the dollar today. JPY opened at 91.01 but is currently down at around the 90.60 mark. Japan’s incoming Finance Minister Fujii says current forex moves not rapid, that he is opposed to forex intervention if forex moves gradual, and infact a strong yen has merits for the Japanese economy.
Due for release today there is the GBP jobless Claims Change, GBP Claimant Count Rate, GBP ILO Unemployment Rate, CHF ZEW Survey, EUR Euro-Zone Consumer Price Index, USD Consumer Price Index, USD Current Account Balance, USD Net Long-Term TIC flows, USD Total Net TIC Flows, JPY BSI Large All Industry, JPY BSIÂ Large Manufacturing and JPY Tertiary Industry Index.
This morning the Euro is showing weakness against the dollar and is currently down at 1.4615 from its open of 1.4626. From here technical resistance at 1.4645/55. After two loosing days the Sterling is showing strength this morning up from its open and currently bouncing at around the 1.6623 mark. The pairing has garnered some support from good housing data. RICS August read came in at 10.7 from -5.7 in July, the first positive reading since May 2007. JPY/USD up again today. Looking strong after recent looses, already up at around the 91.14 level.
Due for release today there is the GBP Consumer price Index, GBP Consumer price Index, GBP DCLG UK House Prices, EUR German ZEW Survey, EUR-Zone ZEW Survey, EUR European Commission Releases Economic Forecasts and USD advanced retail sales, USD Advance Retail Sales, USD Retails Sales Less Autos, USD Retail Sales Ex Auto & Gas and USD Producer Price Index.
The Euro has dropped lower this morning from its open and is currently around the 1.4544 level. The euro zone’s industrial production will be released today which may help the pair to climb again if it showed an improving industrial output. Momentum indicators on the daily chart are supporting the downside movements. Cable has dropped this morning following 4 consecutive days of rises and is currently around the 1.6570 level. The pair is having a support at 1.6550 along with a resistance at 1.6725. The JPY has dropped to a low of 90.19 this morning, but however is showing strength currently bouncing just above its opening level at 90.74. The pair is having a support at 90.10 along with a resistance at 90.85.
Due for release today there is the CHF Producer & Import Prices, EUR Euro-Zone Employment, EUR Euro-Zone industrial production, NZD Manufacturing Activity, GBP RICS House Price Balance.
The EURO has recently had a string of rallies. The EURO is at currently above its open and is currently bouncing around the 1.4614 mark. Risk appetite has received a further boost from the release of a raft of encouraging Chinese economic data. Cable has had three days of gains, currently bouncing around the 1.6721 mark up from its open. For today, supports at 1.6690, 1.6665 and 1.6645/50, resistances up at 1.6740/50 and 1.6780/85. Little in the way of UK economic data today. JPY is trading down in early trade, looking to make its fourth consecutive day of losses.
Due for release today there is the GBP Producer Price Index Input, GBP Producer Price Output, GBP Producer Price Index Output, CAD New Housing Price Index and USD Michigan Confidence.
Cable has shown a recent rally over the past few days. However this morning it is down from its open of 1.6545 and is holding steady at the 1.6510 level. Big day for sterling today with the BOE rate decision due. Seems to be position adjustment ahead of the BOE rate decision. EUR opened at 1.4563 and is up slightly at 1.4569. The CHF/USD has shown little movement this morning and is still sat on the open at around 1.0405. JPY/USD is up marginally from it open and at the time of writing is at the 91.97 level. AUD and NZD remain the flag-bearers for risky currencies. There’s major event risk today, the RBNZ meeting at 9am NZT, and Australia’s employment report a few hours later. A surprise from the RBNZ would likely send AUD/NZD higher.
Due for release today there are the GBP Bank of England Interest Rate Decision, CAD International Merchandise Trade, USD Trade Balance, USD Initial Jobless Claims, USD Continuing Claims, CAD Bank of Canada Interest Rate Decision, NZD Food Prices, JPY Gross Domestic Product.
The EURO has struggled to stay up this morning and is currently being pushed lower around the 1.4486 level. Cable also despite making large rises this morning is now fluctuating around its open at the 1.6501 mark. The NIESR has heralded the end of the recession in the UK and that will have lent a little underpinning to the pairing. The overnight release of Nationwide consumer confidence for August will also have been a plus. JPY is showing strength up from its open of 92.29 and currently hovering around the 92.48 mark. Due for release today there are the AUD Westpac Consumer Confidence, AUD Investment Lending, JPY Leading Index, JPY Machine Tool Orders, EUR German Consumer Price Index, CAD Housing Starts, USD Fed’s Beige Book, NZD Reserve Bank of New Zealand Interest Rate. by Greg Secker
The USD index came under pressure following comments from China on redesigning its foreign reserve policy. The EUR is well up from its open this morning and is currently bouncing around at the 1.4373 mark. Cable is also showing strength, up from its open of 1.6341 and currently pushing up around the 1.6397 level. The JPY has dropped significantly this morning, currently around the 92.48 level.
Due for release today there are the GBP industrial production, EUR German Industrial Production, CAD Building Permits, USD Consumer Credit, GBP Nationwide Consumer Confidence.
After US unemployment figures were released, the US dollar see-sawed vs. most major currencies. In other news, the Group of 20 has promised to keep economic support packages in places until recovery is certain and will withdraw the stimulus when it is appropriate. The Euro is currently up this morning, opening around the 1.4297 mark and has currently risen to the 1.4342 level. The British pound remains steady vs. the dollar after the US jobs report for August. The pound’s steadiness can also be attributed to British construction Q2 output volume falling by 0.5% which was estimated at a 2.2% decline. The GBP is currently bouncing around the 1.6405 mark slightly above its morning open. The Japanese yen is showing strength recently, after a string of recent losses. The Yen has improved this morning rising to the 93.15 level. The Dow Jones industrial average climbed 96.66 points, or 1.03 percent, to end at 9,441.27. The Standard & Poor’s 500 Index gained 13.16 points, or 1.31 percent, to 1,016.40. The Nasdaq Composite Index rose 35.58 points, or 1.79 percent, to close at 2,018.78. But for the week, the Dow was down 1.1 percent, the S&P 500 was off 1.2 percent and the Nasdaq lost 0.5 percent due to a sharp sell-off in the first three days of the week. Gains were broad-based, with technology shares leading the charge. Among financial stocks, shares of mortgage fund providers Fannie Mae and Freddie Mac rose on news that they were back in compliance with New York Stock Exchange share listing rules, reinstating somewhat their respectability among investors. European stock index futures pointed to a higher open on Monday after the Group of 20 finance ministers and central bankers said they would not remove economic stimulus until the global recovery was well entrenched. The benchmark Nikkei climbed 133.83 points to 10,320.94, rebounding from a five-week closing low hit on Friday.
The euro and the pound are consolidating against the dollar, while the yen advanced. Cable at 1.6327 is very marginally lower than it’s open. This pair has been steady today. EUR/USD dipped lower this morning to as low as 1.4237, however it has made ground against and is now rising just above it’s open at 1.4263 level. The pair is having a support at 1.4225 along with a resistance at 1.4275. JPY/USD is slightly above its open at 92.63. Yesterday this pair ended up, after a three day loosing streak. The pair is having a support at 92.30 along with a resistance at 92.85. If the pair breached the support the pair will target 92.00. Fundamentals concerning non farm payrolls and unemployment rate in the U.S are on queue today that may move the market. So far, the pair is trading in an oversold area according to the daily stochastic oscillator
Due for release today there are CAD Net Change In Employment Figures, CAD Unemployment Rate, USD Average Hourly Earnings, USD Unemployment Rate, USD Change in Non-Farm Payrolls and CAD Ivey PMI.
Some dealers expect the yen to continue benefiting for the rest of the week amid growing concern that any more pullback in equities could be a further drag on a global economic recovery. JPY/USD is currently bouncing around the 92.65 mark. Release of stronger than forecast Australian GDP data provided a boost for risk, the recovery in Aussie-yen lifting euro-yen and in turn allowed euro-dollar to edge back above USD1.42 to retest earlier opening highs. Further demand extended the recovery to USD1.4227, with rate currently holding around USD1.4213. EUR/USD has ticked a little higher, presently at 1.4240 in fairly slow trade. The move comes with S&P futures putting on a few points. The EURO tumbled from 1.4379 to as low as 1.4177 yesterday due to active cross selling in euro on the selloff in global stock markets. Sterling is currently down from today’s open. Cable has slipped marginally lower in early trade, presently hovering around the 1.6128 level.
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Due for release today there are the Euro-Zone GDP, Euro Zone Household Consumption, USD ADP Employment Change, USD Factory Orders.
