Easy Forex Daily Forex Report 04-07-2012

FOREX Daily Outlook by Easy-Forex.com

Gold and Oil Continue to Rally

U.S. Dollar Trading (USD) stocks
and commodities continued to rally overnight but currencies were quiet with
some major risk events ahead. Tomorrow the European Central Bank and the Bank
of England have interest rate meetings. US stocks rallied after May Factory
Orders gained 0.7% vs. 0.2% and was a welcome change from the recent trend of
weakening data.
Looking ahead, Public Holiday for US Independence
Day.

The Euro (EUR) the EUR/USD was pivoting
the 1.2600 level with little movement except for a pullback in the European
session to 1.2560 and rally to 1.2630 in the US session. The outlook is mixed
still with EU Pact still to be ratified by most countries and the ECB to meet
tomorrow with expectations of a rate cut high and possible new information on
the EU Bailout.
The Sterling (GBP) the GBP/USD was
even more stable than the EUR/USD with 1.5700 containing a few attempts higher.
The BOE meeting is expected to result in an increase in the Asset Purchase
Program by 50bn. UK PMI was lower than expected at 48.2 vs. 53.3 forecast. Also ahead, June EU
PMI Services forecast at 50.3 vs. 51.8 previously.

The Japanese Yen (JPY) the USD/JPY rallied
to Y79.9 before stabilizing for the rest of the trading day unable to break the
key Y80 level. AUD/JPY and EUR/JPY were stronger enjoying the major’s rally but
both are also related to the stock market and its fate will determine
direction. Australian Dollar
(AUD) the AUD/USD was well supported from the stock market
rally with the RBA hold at 3.5% and indicating patience and caution going
forward with European and Chinese threats still existing to the Australian
economy. They did not however the underlying outlook and strength of the
Commodity powerhouse was positive. UPDATE May Retail Sales
Positive at 0.5% vs. 0.2% previously.

Oil & Gold (XAU) Gold kicked higher
to $1620 with commodities all enjoying substantial gains as investor risk
appetite picked up. OIL/USD broke above $85.00
and rallied to $88.00 before stabilizing at $87.50. Fresh Iran fears and
ongoing Norway Strike is affecting production.

Pairs to watch

AUD/USD to continue rally or consolidate with US
away?

EUR/USD Building a base for a rally? Or false hope
for bulls?

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