Forex Trade: Europeans Absorb A Big Calendar. Usd Pressured Now
Jun 30, 2009 Make Money Online
European markets have absorbed their calendar releases, that included U.K. GDP that came in lower than expected at -2.4% instead of -2.0%, which not only reduces growth forecasts but will now reveal the real strength behind the buying of the pound (if it rises after these numbers we will know that the Usd is in trouble). The U.K. house price index and Current Account numbers were mixed.
Reduced Euro-zone money supply M3 numbers indicate a reduced liquidity in the cash/deposit amounts, and there has been a slight reduction, although still better than expected, in CPI inflationary reads that printed at -0.1% instead of the -0.2% expected. In all, a session that offers a level view of European economics that may not impact the euro too much, but it does seem that the pound will now have its GDP (Growth)/Interest Rate ratios and valuations tested.
The commodity markets have held their value at eight month highs with oil pushing 73.50 overnight, and have seen positive gold trade that is testing 950.00. Asian equity trade was in the green, but only slightly higher in Europe, with U.S. futures numbers holding steady just under Monday’s Wall Street close.
That sets up a good test of the major sentiment against the Usd, something now that these economic releases out of the way will require positive equity trade to follow through. Ahead of the U.S. reversal that tends to hit between 06:00-07:00 EDT each day we will look to the reaction in these numbers, especially as equity trade is not pushing hard to the long side. If the dollar is going to easily find buyers, this will be the ideal opportunity. If not, it will be a strong signal that the 4 hour chart channels may hold steady and send the major pairs back to the bottom of their ranges.
—TeamLFB—
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Tags: Cash, commodity market, CPI, Deposit, Economics, Forex, GBP, GDP, Name.com, USD, Wall Street
September 22nd, 2009 at 2:27 am
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