U.S. Dollar Trading (USD) the market rallied overnight and into Asia on Tuesday with expectations rising that the US central bank Chief Ben Bernanke will hint at more stimulus when he speaks before the senate banking committee. Overnight June Retail Sales fell -0.5% and this cause the market to rally on the perverse idea weak economic data will mean the FED will do more to stimulant the economy. Looking ahead, June CPI forecast at 0.0 vs. -0.3% previously. FED Chairman Bernanke speaking.
The Euro (EUR) the EUR/USD enjoyed a second day of rare gains up to 1.2270 after stocks continued to rally and fears eased that the Debt crisis was spirally out of control. The USD weakness from the growing FED easing speculation also helped underpin the rally but for more substantial gains we are going to need solid news. The Sterling (GBP) was the strongest currency in the market gaining against the USD and Yen and also making small gains against other risk assets with the UK seen as a better bet than the Euro for going forward. EUR/GBP broke 0.7850 and is making daily fresh lows. Looking ahead, German July ZEW forecast at 30 vs. 33 previously. Also June Retail Sales forecast at 0%.
The Japanese Yen (JPY) was stronger against the troubled USD but was sold against most pairs with the ‘risk on’ mood. USD/JPY broke below Y79 and is struggling to find support in recent trading sessions. The EUR/JPY fell to the lower Y96 region before rebounding to Y97 in Asia today. Australian Dollar (AUD) the AUD/USD was well supported on a dip to 1.0200 and finished the day near 1.0250. In Asian trade on Tuesday we saw an extension of the rally to 1.0300 on the back of neutral RBA minutes suggesting the central bank was done for now cutting interest rates.
Oil & Gold (XAU) Gold rallied as speculation mounted the US central bank will do more to stimulate the US economy and this would weaken the Greenback.OIL/USD rallied to $87 with stocks and positive mood and likely to continue higher in the new contract month starting today.
Pairs to watch
EUR/USD can we get back above 1.2300?
ADU/USD will the recent 1.0325 hold?
TECHNICAL COMMENTARY
Currency
Sup 2
Sup 1
Spot
Res 1
Res 2
EUR/USD
1.2165
1.2245
1.2280
1.2320
1.2360
USD/JPY
78.40
78.65
78.90
79.10
79.40
GBP/USD
1.5545
1.5590
1.5655
1.5675
1.5710
AUD/USD
1.0200
1.0235
1.0290
1.0325
1.0380
XAU/USD
1565.00
1578
1593
1598
1604
OIL/USD
85.00
88.00
88.20
90.00
91.50
Forex trading involves substantial risk of loss, and may not be suitable for everyone.
Fed Chief Bernanke Speaks Tonight to US Senators
U.S. Dollar Trading (USD) the
market rallied overnight and into Asia on Tuesday with expectations rising that
the US central bank Chief Ben Bernanke will hint at more stimulus when he speaks
before the senate banking committee. Overnight June Retail Sales fell -0.5% and
this cause the market to rally on the perverse idea weak economic data will
mean the FED will do more to stimulant the economy. Looking ahead, June
CPI forecast at 0.0 vs. -0.3% previously. FED Chairman Bernanke speaking.
The Euro (EUR) the EUR/USD enjoyed
a second day of rare gains up to 1.2270 after stocks continued to rally and
fears eased that the Debt crisis was spirally out of control. The USD weakness
from the growing FED easing speculation also helped underpin the rally but for
more substantial gains we are going to need solid news. The Sterling (GBP) was the
strongest currency in the market gaining against the USD and Yen and also
making small gains against other risk assets with the UK seen as a better bet
than the Euro for going forward. EUR/GBP broke 0.7850 and is making daily fresh
lows. Looking ahead, German
July ZEW forecast at 30 vs. 33 previously. Also June Retail Sales forecast at
0%.
The Japanese Yen (JPY) was stronger
against the troubled USD but was sold against most pairs with the ‘risk on’
mood. USD/JPY broke below Y79 and is struggling to find support in recent
trading sessions. The EUR/JPY fell to the lower Y96 region before rebounding to
Y97 in Asia today. Australian Dollar (AUD) the
AUD/USD was well supported on a dip to 1.0200 and finished the day near 1.0250.
In Asian trade on Tuesday we saw an extension of the rally to 1.0300 on the back
of neutral RBA minutes suggesting the central bank was done for now cutting interest
rates.
Oil & Gold (XAU) Gold rallied as
speculation mounted the US central bank will do more to stimulate the US economy
and this would weaken the Greenback. OIL/USD rallied to $87
with stocks and positive mood and likely to continue higher in the new contract
month starting today.
Pairs to watch
EUR/USD can we get back above 1.2300?
ADU/USD will the recent 1.0325 hold?
TECHNICAL COMMENTARY
Currency
Sup 2
Sup 1
Spot
Res 1
Res 2
EUR/USD
1.2165
1.2245
1.2280
1.2320
1.2360
USD/JPY
78.40
78.65
78.90
79.10
79.40
GBP/USD
1.5545
1.5590
1.5655
1.5675
1.5710
AUD/USD
1.0200
1.0235
1.0290
1.0325
1.0380
XAU/USD
1565.00
1578
1593
1598
1604
OIL/USD
85.00
88.00
88.20
90.00
91.50
Forex trading involves substantial risk of loss, and may not be suitable for everyone.
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