The Forex Daily Digest - August 19, 2009
Better-than-expected quarterly profits from retailers like Home Depot, Target and American Express led to a bounce-back for financials which helped stocks close higher yesterday. In the wake of steep declines in the past two sessions, consumer stocks had a solid move higher. While concern about the health of the American consumer remains, largely due to a still weakened labor market, some within the industry were able to suppress investor fears on the session.
The USD and JPY may extend their decline against major counterparts after an advance in stocks and commodities discouraged demand for relative safety. The EU rose for the first time in three days against the JPY and USD as German investor confidence jumped this month to the highest level in more than three years. The GBP increased from near a one-month low versus the USD after a report showed the U.K. inflation rate was higher in July than economists forecast as the nation’s recession eased.
Pacific Investment Management, which runs the world’s largest bond fund, said the USD will probably fall as it loses its status as a reserve currency. One analyst said that the USD will especially drop against emerging-market counterparts. He also said that investors should consider cutting their holdings of the U.S. currency. Pimco also said that growth of about 2 percent paired with an elevated unemployment rate will likely be the “new normal” as the U.S. economy recovers.
The CAD rallied off an early low and closed higher versus the USD yesterday as firmer commodity prices and renewed risk appetite helped it snap a three-session skid. The currency dropped to a one-month low earlier this week as stock markets and commodities fell, but stocks and commodities pushed back higher yesterday, dampening the safe haven appeal of the USD and pulling the CAD up as they rose.
According to Mitsubishi UFJ Securities Co., Japanese bond futures may rise to a one-month high “shortly.” Parabolic Systems, which traders use to track the strength of a trend, switched to a buy signal for bond futures for September delivery. They also said that the MACD indicator also shows futures are set to climb.
In economic news today, you can expect a slow day today. The nly major report expected pout today include the Crude Oil Inventories for the week of August 14th which was up 2.52 million barrels in last week’s report.
In earnings today, look for Deere & Company, Perry Ellis International, BJ's Wholesale Club, Flowers Foods, Limited Brands, and PetSmart.
The James Dicks Forex alert teams are still pulling in the pips in our model portfolios! For the month of August, the James Dicks Forex alerts have gained 783 PIPs and is still counting. See for yourself and get the alerts risk free for 30 days; try before you buy! If you don’t see the value, you can cancel anytime during the first 30 days and not be charged. The James Dicks Forex Alerts are available to anyone to try - Risk Free for 30 days. Just visit www.JDForexAlerts.com today!
Happy Trading,
James Dicks
The USD and JPY may extend their decline against major counterparts after an advance in stocks and commodities discouraged demand for relative safety. The EU rose for the first time in three days against the JPY and USD as German investor confidence jumped this month to the highest level in more than three years. The GBP increased from near a one-month low versus the USD after a report showed the U.K. inflation rate was higher in July than economists forecast as the nation’s recession eased.
Pacific Investment Management, which runs the world’s largest bond fund, said the USD will probably fall as it loses its status as a reserve currency. One analyst said that the USD will especially drop against emerging-market counterparts. He also said that investors should consider cutting their holdings of the U.S. currency. Pimco also said that growth of about 2 percent paired with an elevated unemployment rate will likely be the “new normal” as the U.S. economy recovers.
The CAD rallied off an early low and closed higher versus the USD yesterday as firmer commodity prices and renewed risk appetite helped it snap a three-session skid. The currency dropped to a one-month low earlier this week as stock markets and commodities fell, but stocks and commodities pushed back higher yesterday, dampening the safe haven appeal of the USD and pulling the CAD up as they rose.
According to Mitsubishi UFJ Securities Co., Japanese bond futures may rise to a one-month high “shortly.” Parabolic Systems, which traders use to track the strength of a trend, switched to a buy signal for bond futures for September delivery. They also said that the MACD indicator also shows futures are set to climb.
In economic news today, you can expect a slow day today. The nly major report expected pout today include the Crude Oil Inventories for the week of August 14th which was up 2.52 million barrels in last week’s report.
In earnings today, look for Deere & Company, Perry Ellis International, BJ's Wholesale Club, Flowers Foods, Limited Brands, and PetSmart.
The James Dicks Forex alert teams are still pulling in the pips in our model portfolios! For the month of August, the James Dicks Forex alerts have gained 783 PIPs and is still counting. See for yourself and get the alerts risk free for 30 days; try before you buy! If you don’t see the value, you can cancel anytime during the first 30 days and not be charged. The James Dicks Forex Alerts are available to anyone to try - Risk Free for 30 days. Just visit www.JDForexAlerts.com today!
Happy Trading,
James Dicks
Views: 0
Comment
© 2024 Created by James Dicks.
Powered by
You need to be a member of JDFN Financial Network to add comments!
Join JDFN Financial Network